lol Rick, good to see you back in the posting mood, love the GBP M1 work you're sharing.
Here is my daily grid based scalping EA update for today. This morning I like the NZDUSD and USDCAD for range trading within about a 200 point band, as shown in the daily charts below:
None of the 7 runs I had going yesterday have closed in the last 24 hours. The total net position has slipped a little due mainly to the USDCHF and USDJPY, so I will probably have 2 losers on my hands here, but the others are looking good:
Most of the GBP crosses have been trading in a fairly tight range (actually, the ADR is down and some are drifting a bit, but all would be good for this EA - a pity I decided not to trade them after last month's strong move, fearing continued Brexit related volatility). In any case, I have been watching them as part of my studies for this strategy (to find ways to refine in future), and I thought I would do a comparison of an extended run with no profit target versus a consecutive series of finite runs with a $50 Gross Profit target, where each time the profit target is achieved, I re-start the EA the next day. As you can see from the daily chart below, the price action following that 2nd red diamond indicated can best be described as drifting downwards and with reduced volatility (i.e. low ADR)). So I have been wondering which approach is better - the sequence of $50 Gross Profit runs, or a single run with no GP target.
So I have run a backtest comparing the 2 approaches and the results are very interesting (to me at least). Both approaches start from the same date (17/10/19, the day following that 2nd red diamond)
Firstly, the single extended run results are as follows (equity curve plus individual trade results):
Secondly, the multiple consecutive $50 Gross Profit target runs (there have been 7 so far from 17/11/19 to 27/11/19):
And a table summarising the results of each of the runs:
So clearly the repeated runs with a small gross profit target is the better approach, because it prevents the build-up of larger losing entries. In total for the smaller runs, there were a total of 338 trades, versus only 276 for the extended run, so those open trades that build up into relatively large individual losses also prevent other trades from being taken and contributing to th profit total (because I have a limit on number of open trades). Plus the close-out loss was quite big at -$179.58.
I've done similar backtest comparisons on a couple of other markets when they were ranging for an extended period and unless the market remains within a perfect tight horizontal band (very rare) the short multiple run approach gives the better results.
