Portfolio Doing Well

The portfolio I developed using StrategyQuant is working very well. I started it in a live account April 1, 2015 and it is up 14% and over 1000 pips.  Drawdown is minimal at 11%, my goal is to have drawdown capped at 20%, but ideally below 15%.  Although it’s too early to conclude success after only 2 months, the strategies’ drawdowns and smooth upward performance results are indicative of the back testing and forward testing results I had.  So it’s looking real good overall.

After I made 10%, I doubled the lot size.  This is a test live account (demo account was giving different trade results than the live account so I do not want to rely on a demo account’s results).  I am using a $1,000 account with a .01 micro lot to start, and am now using a .02 micro lot, and will continue to increase as profits grow to compound the returns.

The attached pic is of when I started this portfolio in a live test account April 1, 2015.  So it has accurate readings related only to this portfolio and filters out previous results from other strategies.  I also have the entire account tracked on MYfxbook (http://www.myfxbook.com/members/PrincipAnalysis/principle-analysis-sq-portfolio/1244436) but this documents the account since its inception which distorts the data related to this portfolio since I tested a grid trading strategy before and it was very wild so I stopped using it.  You can see on the MYfxbook link that the performance became significantly smoothed out once I started using the current StrategyQuant portfolio April 1st though.

I just wanted to drop by and post my results and at least short term success in using StrategyQuant to develop my own EAs.  So far so good.  I will be back again later with an updated report.

Where have you joined guys? Can you please explain the rules briefly?

Yes, I know this one already, I am a reader of his blog. Yet where are his live results which underline his theories apart from backtests? Asking him, he won´t give any out and says the community is not about that and doesn´t need to show anything. Where did I hear such things before? Where are the results beside all the theoretical analysis and backtests which SHOULD work into the future?

If you read properly what this guy is writing, you will not need any evidence. Its visible that what he says comes from real trading/experience.

Sorry, but it isn´t. It´s still all theory and reading reviews about his site on other Forums, none of the members is making money really. Still the proof would be so easy, just show a MyFxBook account and that´s it. Yet EVERYONE that SAYS he/she is making money from automated trading, doesn´t post any:)

This is investment fund that I manage, I dont use strategies from SQ, but so far results are good enough for me https://www.mql5.com/en/signals/136822
WysÅ‚ane z mojego Z30 przy uÃ…¼yciu Tapatalka

Is this a grid system?

If it looks, smells, and walks like a grid, it most likely is a grid 🙂 And this one looks just like any grid out there. Just give it a little time and it will go boom – just like any grid does sooner or later (sorry to say, but that´s the reality).

I spent a lot of time testing various grids and my conclusion is: inevitable is inevitable 😉

Geektrader I am sensing that you have similar view on this: for experienced ATS developer or tester one look at equity chart is enough to say almost everything about it. I also believe that experience as tester (only as tester) is most valuable to have an independent view.

Grids, no need to talk about them really.I have seen a couple of 100´s of them throughout my years in Forex, ALL of them failed, they just look good for SOME time and that´s why people jump on them as the equity growth looks so good. But ALL of them sooner or later go boom on one day and lose everything. Yet people can´t resist to use them it seems. Well, good luck with that, but the crash is pre-programmed with any grid. Again, I am ready to be proven wrong: show me a 15 years backtest for any grid that survives that – they don´t even survive such a backtest.

I don’t trade any grid systems myself as I was never originally a fan (although I may take a closer look in the new year at this one), but I do know someone that has been using a semi-automated grid system since the beginning of the year and he frequently comes away with net profit at the end of the day.

He has his own directional bias, either based on higher time frame trends or fundamentals, and depending on the direction he’ll have levels set 10 pips apart going with the trend, and 20 pips apart going against the trend (just as an example) – and at the end of the day frequently comes out in net profit.

He trades very small with this system (micro lot sizes) and has a big enough account to withstand large drawdowns, which isn’t very often as he doesn’t hold on to the floating negative equity of the grid, he just closes it down and takes the small net profit. 

Works for him…

As I said, that´s the thing that grids fool you in. They give you steady net profits and it looks all great until crash day comes. I guarantee you 100% that this will be no different for your friend. Just run a backtest with it and I guarantee you it crashes after at least 3 years there already and then all the profit is gone. If manual intervening it, it´s just like manual trading really, no need to run a automated system then as it breaks the whole approach of automated trading.

I’m not so sure…

There’s arguably been two crashes this year (unless I’m missing something) and he’s survived them both.

I think it can be managed with appropriate trade sizing. Granted, the returns won’t be anything to write home about, but it is just one system of many.

If direction is predicted why using grid? In this case I guess system is as you described (higher tf, fundamentals), grid only decreases potential profit.

“doesn’t hold on to the floating negative equity of the grid, he just closes it down and takes the small net profit.”
So it is manual system, not a real grid. But good luck of course 😉

He uses a grid because he is (rightfully) not so arrogant to believe his prediction will always be correct. 🙂

It’s just an example of a grid type system that actually works for someone.

But you’re right, it does decrease potential profit…but he doesn’t care. He makes money from this system, so he’s happy. As mentioned, it’s just one of many systems he uses.

Also, keep in mind it’s automated up to the point he decides to change the levels of a particular grid. Some trends can last months and months…

Sorry, but it isn´t. It´s still all theory and reading reviews about his site on other Forums, none of the members is making money really. Still the proof would be so easy, just show a MyFxBook account and that´s it. Yet EVERYONE that SAYS he/she is making money from automated trading, doesn´t post any:)

My view is the same.

Clever stuff, genuine guy, interesting approaches, but all that really matters is “will it make consistent, low risk profits?”  Sadly there’s no proof it does. How many people would sign up if he could show a verified account with good results?  1000’s would sign up next day and he’d be well on his way to millions….

So why not show money is being made?

Exactly… I anyway joined now, really want their 1M data that they have for many pairs from 1987 to date, hole free. That will also help a lot with StrategyQuant. Alone the data is worth the price IMHO. You won´t find a source out there beside from Olsen Data that has error-free 1M data for so many symbols from 1987 to now. And Olsen Data charges 5000€ alone for EURUSD 1M data from 1987 to now. Let´s see what the rest will bring, I will report back, it´s a last try for me really.

Lower profit but risk is much higher when using grid. Arrogance is equal in both cases 😉 Closing trade is the most important part, if he closes trades manualy based on his personal current view, system 100% random.