Big losses and timing

[dkoh]

hi traders,

not sure if you have experienced this, just want to seek your advices on how to deal with such cases

– generated some strategies/portfolios 1-2 months ago
– it is profitable on demo acct for 3-4 weeks
– deployed it last week, and it had some small wins and losses, profit factor > 1.2
Today, it crashed totally, stop loss triggered for most of its open trades

the currency pairs are GBPUSD, AUDJPY, AUDCHF..

how do you prevent such cases?

should i leave the EA running? (based on historical data, it should recuperate, but market structure might not fit the strategy anymore)

how do you determine when to remove the EA?

what is your workflow around deploying the EAs and removing the EAs?

Also, what is your workflow to handle such market situations?

 

[Andi]

Hey!

It depends on many things…

If you are using Portfolio EAs, do you use the method that Petko teaches in the course to remove the losing strategies from the code?

I would avoid trading AUDJPY and AUDCHF, try with the Major currencies.

And third, I monitor the last 1 month, the last 2 weeks, and the last 1 week. If I keep the EAs above 1,2 PF, I would remove them if I see lower PF on any of the 3 periods.

[Roman]

Good evening Dkoh,

I like Andi’s method, at the end of the day it all depends on you in order to determine “when to remove”. But its normal to have a day when you have a spike down and then up. As long as the EA’s individually haven’t broken your trading criteria then there’s no need to worry/remove them. Fluctuations in the market happen, its Dynamic. If your back testing and forward testing are in alignment give them time to work.

[Petko Aleksandrov]

Hello Dkoh,

if you provide some more info about your trading, we might help you better.

As Andi says, it could be from many things, and as Roman says, it happens to have negative days.

[Author]

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