This happened to me also and I was lost. The portfolio created in EA studio lost a lot of money even with stop loss...and some strategies had signals not based on TP and SL.
I had about 27 strategies in the portfolio pruned from running in a demo account. When the market started going up. It continually started selling so after each bar instead of buying..it sent signals of selling and the market went up 170 pips. By the time it got there on 0.01 lots lost over $650 of the account in a day.

Popov
You need to do a video on some strategy that caters to market moving over 150 pips in a single day....I always tend to miss out on such trends and find the EA generated also mostly miss such moves.
GBPJPY is one pair that tends to move 50 pips in a matter of minutes.

Thanks

fmFXbr

Please consider abandoning the 5 minute time frame and move to 240 minute, create a lot of good strategies with tight standards in the acceptance criteria.

The faster time frames are for donating your funds to the broker unless you are a very astute strategy developer.

Use a fixed lot size as variabkle can not be reliably optimized.

Keep the lot size small, use more strategies so as to spread the risk.

Because we have the same move last week and your account did not blow, I wonder if you have been optimizing the strategy often enough and I wonder what the monte carlo showed. The faster time frames have to be reoptimized often, they are actually like suicide to use unless you can be watching all the time.

When selecting a period to optimize and backtest, ie the data period, you have to ensure that there is rising and falling market in relatively equal portion.

In that way the strategy gets built with equal bias for buy and sell.

Some markets trend up for a long time, or they may trend down for a long time..... Unless you backtest on a balanced period, your strategy will have a bias to one or the other.

You can use the tools in 'market' to test your strategy in different periods by changing the dates of the data.

You might spend some time learning about 'Walk Forward' testing so that you can do more testing of your strategies before putting them on charts.

like win/loss should be set to .75

If you are sticking to the scalping........ do walk forward on a few years data to make sure that you have covered all of the possibilities

One thing you can do that is simple and effective is to use a moving average crossover to close out when the trend changes..

That will allow you to work with narrower stops and ensure also that there is no extreme losses as happened this week.

Thanks for taking the time to share your experience. I do backtest on all the available broker data so on H1 more than a year. Anyways will look at the MA crossover as exit for sure.

Any ideas on how to perform the walk forward test. Is it in FSB? What tool are you using? I know a competitor product has it.

Regards,

Very interesting -- thanks for the advice.  I appreciate the things I learn on this forum.   I've revisited some strategies and incorporated that indicator.  And I also found I could lower the SL (as you suggest) and still maintain excellent statistics.

That's okay.  I wasn't necessarily expecting a "best" solution.  Previously I didn't have a reference point of how to think about incorporating some protection for a dramatic trend change.  And your suggestion then provided some insight on how an experienced trader might approach the problem.

If in your archaeological work you happen to excavate some lost treasures and ideas you used in the past, I'd certainly be interested in giving them a try.

Thanks...

alamehmazen123

Each strategy has its own personality and therefore has to be studied as to when or how often to reoptimize.

In an old thread Popov told us of how his friend used to reoptimize every hour, I guess he was trading a one minute chart.

Proibably a good approach is to test how a strategy performs over a bunch of periods using old data and determione how often reoptimization is needed.

There is no set rule or formula. We have to research that for ourselves with each strategy or group of strategies. We have to devise our own approaches.