4,000 Pips Bearish Generator GBPUSD
4,000 Pips Generator designed for Entry Traders who loves compounding. The EA is designed to trade specifically GBPUSD M15 chart and has been tested with MT5’s most advanced and highly accurate “Every Tick” setting. It has been back-tested from January 1st, 2003 to December 31st, 2014 without compounding. The results have gained greater than 4,000 pips with more than 950 trades.
The trading strategy offered here is only a subset of our trading design. We believe that the market has 9 different states and that at least 9 distinctive algorithms are required for each trading instrument. However, we cannot offer the entire 18 algorithms for trading the GBPUSD. In our full system design, we use two unique algorithms per state for comprehensive coverage.
We donâ„¢t believe in high winning percentage systems that will wipe out your account with one bad trade. Each of our trades is placed with fixed stop loss and take profit.
Compounding can generate a lot of profit, but it can also put your account at risk. You can read more about our trading philosophy in our book entitled “The Bull, the Bear, and the Baboon — FX Lessons Learned the Hard Way.” The strategy has been tested with more than109,582,587 ticks on MT5’s most advanced and highly accurate “Every Tick” setting.
Usage requirements: Pro or ECN account (Market Execution) with spread ranging from 1.5–4.0 pips (15–40 pips for prices with 5‑digit precision).
Symbols: GBPUSD exclusively.
Maximal drawdown is depending on initial deposit and whether compounding option is selected.
How to read back-tested results for fixed 0.1 lot trading from January 1st, 2003 to December 31st, 2014 (1 pip = $1):
- 1) Total Net Profit > 4,000 pips
- 2) Total Trades > 950 trades (sell only trades)
- 3) Profitable Trades > 45%
- 4) Largest loss trade = 220 pips (user can modify to smaller Stop Loss as desired)
- 5) Largest profit trade =120 pips (user can modify to smaller or larger Take Profit as desired)
- 6) Drawdown = 1,255 pips
Given that speculative currency trading presents the risk of substantial losses, only persons with high net worth and the ability to absorb such losses should consider participating in the programs offered.
Recommendations for Maximizing Profit (non compounding)
- 1) Set Stop Loss = 200 pips and Take Profit = 260 pips (Every Tick)
- 2) Set Stop Loss = 240 pips and Take Profit = 260 pips
- 3) Set Stop Loss = 240 pips and Take Profit = 240 pips
Recommendations for Minimizing Risk
- 1) Set Stop Loss = 220 pips and Take Profit = 260 pips (Every Tick)
- 2) Set Stop Loss = 180 pips and Take Profit = 260 pips
- 3) Set Stop Loss = 200 pips and Take Profit = 260 pips
- It is recommended to have at least 18 algorithms trading one single instrument. It is impossible for one algorithm to be profitable for the 9 different states of the market. The collection of numerous algorithms will act as a portfolio to provide proper diversification.
- It is important to back test a system over 10 years with at least 1,000 trades.
- Trading rebate can generate additional profits but make sure that the spread is fixed.
- Use compounding with extreme care.
- Donâ„¢t use trailing stop loss. If necessary, move the Stop Loss once and let the system perform the trading for you.
Winsor Hoang, is the author of Å“The Bull, The Bear and The Baboon â€œ FX Lessons Learned the Hard WayÂ, a former Commodity Trading Advisor (CTA) registered with the NFA and an automated trading researcher since 2003. Winsor actively works with several high profile mathematicians, statisticians, computer scientists, and computational finance specialists at the University of Calgary and other leading institutions to develop reliable and robust trading systems. Joint FX research has also produced several academic papers that have been published in first-class international scientific journals such as Journal of Mathematical Finance (JMF), Elsevier Procedia Computer Science Journal, Institute of Electrical and Electronics Engineers (IEEE) Journal, and International Conference on Computational Science.