Is it okay to join your signal if trades are already open?
The answer is yes. You will profit from joining when I am in drawdown because the trade sequence will go until it hits breakeven, so my drawdown now should end up being your profit.
Is it okay to withdraw or deposit money to my trading account if we have open trades?
It seems to keep the correct lot size in a hedge sequence you can't withdraw or deposit money. However, if you deposit more money to the account, the first hedge position with an increased account size can bring you profit instead of a break even, if you wait for the sequence close. If more hedge trades open after that initial increase in hedge lot size, mathematically it will than compensate for the increase and balance out the rest of the algorithm for you to get a breakeven when all trades close.
So I would say, don't withdraw money from the account when in a hedge sequence because it can influence your lot size negatively unless you calculate how much you need to increase your multiplier to compensate for the difference in account size. Withdrawing money opens you up to increased draw down % and puts a strain on your available margin.
In short: Depositing more funds is fine, withdrawing funds is not recommended.
What do I set the slippage setting to?
Please set your setting to the highest possible value accepted. This is for the purpose that you never miss a single hedge trade. The cost for missing a hedge trade can be much greater than having a hedge trade executed with slippage.
Is the EA for sale?
The EA is not for sale.
Do you ever intervene in the closing of a hedge sequence manually?
So far I have never intervened manually in a hedge sequence because we have coded every choice we would make manually already into the EA. The only kind of manual intervention I have done is closing the trades early or in a small loss of -0.01% if I see we are about to breakeven losing trades and news is coming up or some other reason.
The strategy is very mechanical to remove all emotions from trading. However, I watch over the EA trade all the time, just in case I ever need to intervene for any reason.
Why are pending orders not copied?
The issue with copying the pending orders through a copier is that we all use different brokers and that means it could be possible that sometimes a pending order gets triggered on your account that doesn't get triggered on my account and that would mess up the whole algorithm for closing the losing trades.
The only solution to this issue is to join our MAM/PAMM. You can find more info here: http://www.4xcp.com/mam/
Does the strategy apply compounding or increase the size of trades, profit targets etc. as the account size grows?
Every 5k gained on the account the EA increase the lot size of each 5th by 0.01 lots.
Every time the lot size increase I will announce to everyone, so if you wish to continue keeping the same lot size all the way through you can decrease your multiplier when we increase the lot size.
Does the strategy include consideration of the spread, commission and swap when closing a hedging sequence?
Yes. We do not have a fixed profit target when closing a hedging sequence. The reason for that is spread and swap can increase the distance required to breakeven the whole sequence. Instead, we use a trailing stop to maximize the potential profit taking after we have broken even a hedge sequence.
What do you do when the market is not trending anymore and starts ranging?
There are 4 levels of “defense” we developed & implement at various stages of the trade management:
1) We developed a statistical algorithm that evaluates the market conditions every single day. If a pairs statistical success rate drops below 75% that currency pair will be excluded from trading until it goes above 75% again.
2) The trade size is divided by 5, so instead of opening the full position at just one price level, we can place 5 smaller trades at different price levels & slowly position our full investment at different price levels to achieve the best possible over all position in the market. This allows us to profit also when market is ranging.
3) If market changes direction, each position is protected by our equity protection hedge system & we can switch directions when there is a statistical advantage to do so
4) If market is ranging when we have a hedge sequence open, there are multiple functions our EA has to avoid increasing the exposure when it is statistically not advantageous. To see two of these functions, watch this video: https://www.youtube.com/watch?v=jY51h9B0X6M
With these management functions, even if we reach our max DD of 10%, depending on what the market gives us, we don't have to close all the trades at a full 10% loss. As shown in the video, we can close all the trades at a breakeven or a small loss.
What is the down side to the strategy?
We can potentially experience ranging markets that last for a few weeks. If the range consists of big pull backs, we will have to wait for markets to start trending again to get out of potential draw down we are in.
Do you have your own money invested with your strategy?
Absolutely. This is the reason why we are so risk management focused. We are trading with our own private savings.
In what kind of market conditions will you do well?
This strategy thrives in trending markets and can profit from ranging markets that don't have big pull backs that look like trend reversals.
What is the average duration of your trades?
The average duration is from a few minutes to a few hours. The reason for this is because we only take what the market gives us.
However, if we are in a hedge sequence, it can be a few days to a maximum experienced floating drawdown of 3 weeks.
Do I have access to the total history of trades?
Yes. We have made the entire trading history, even with lot sizes, available on myfxbook. You can access our myfxbook here:http://www.myfxbook.com/members/JoePro/csc-gbe-account-simpletrader-copy/1876425
Do you have a MAM or PAMM?
Yes. We offer a hybrid version of a MAM/PAMM mix. You can find more information on our web site at http://www.4xcp.com/MAM/
We are also going to be adding a MAM option with Mt.Cook
What is the minimum Leverage required to follow the signal?
A 10K+ account running the signal at 1x should have 50:1 a leverage account.
What kind of broker do I need?
You need a broker that will allow you to place a buy and sell trade on the same pair. This strategy is not FIFO compliant.
What currency pairs do you trade?
Main currency pair traded is GBP/JPY & additional potential sub pairs are GBP/AUD GBP/NZD & EUR/JPY for spreading out risk
How long do draw downs last?
The longest draw down the strategy experienced in the past 2 years was 3 weeks.
What kind of account growth can I expect in 1 years’ time?
Before the Flash Crash on Oct. 7th, 2016 we were running the account at 3x risk and the expected annual account growth was around 80-100% with a max drawdown of 30%.
After the flash crash, we revised our money management and are running the account risk at 1x from what it was before. We expect 25-35%/year compounded growth with max draw down 10% before we start scaling out of the trades.
What risk setting do you recommend? Example: 1x 2x 3x etc.
We recommend following the exact money management we are using on our trading account, so a risk multiplier of 1x.
If you can handle up to double the max draw down but for double the gains, please do not to exceed 2x.
What is the minimum account size required to follow this signal?
We recommend having a minimum of 10k+ on your account available for this signal. However, with a risk multiplier of 1x, you can follow this signal with a 5k+ account.
If you do not have a 5K+ account, you can join our MAM with a minimum account deposit of 1k+ EUR.
More info on the MAM on our web site at: http://4xcp.com/mam