First, a shout out to all the LinkedIn peeps. If you are one of those, posting easy to forge cell phone statements, chances are, that I already unfollowed you. I suggest others do the same. It is lame, it is unprofessional and you are swimming in the same water as all the scammers – so, stop it!
Back to business.
About the algo development
Let’s get this straight: there is no holy grail, there is not a single EA in the world that can do it all, that can perform well in all the 3 different kind of markets, there is simply no “one size fits all”.
If someone starts a sentence by saying: “My Algorithm”, I can only think that you are an amateur, a green horn, so I’m begging you, please start using the phrase: “This particular algorithm of mine” instead. Better, now I might listen to what you have to say.
There is a reason that I am running 5-30 EAs at once on a single account depending on the type of the market. To be able to claim anything in algo development one should have made hundreds of them, like I did.
One last bit here: an on screen indicator in my opinion does not fall under algorithms, they may be the basis for them, but an algo should perform some kind of an action related to a trading order. I have been making indicators for a decade, but only started making auto trading routines three years ago. These routines seldom ever plot anything on the screen. I don’t call everything that has a plus or a minus somewhere an algorithm, and neither should you.
What is the world’s first EVO-5 EA made of?
It is a 4-in one routine with features used for the very first time.
The whole thing starts with a carefully selected bunch of triggers.
I combined the Wishing on a Star indicators signals with the RSI sharpies, added volume change triggers, invented counters and factored in other failure possibilities.
Evolution 1 & 2
This is my first time to use a volume change trigger in any EA, and you do not need to know all traded volume to find a change. The sheer complexity of the trigger categorization would be hard to follow for a human brain, this is truly an artificial intelligence.
Evolution 3 & 5
The trigger conditions not merely initiate and close positions, but they serve as stop loss adjusters or the basis of in house hedging.
The EA is equipped with several cropping lines i.e. Golf Cropper and Star Cropper.
So, the question becomes, if this routine can and does it all, is this the holy grail? No. It is only expected to perform well in 2 out of the 3 market types. I would not run it in a no edge market.
Would I say now the sentence “My algorithm”? No. I would still run it with at least 2 other routines simultaneously: a ratio hedger (just in case) and a smart trail stop.
Too much talk? Show the test already?!
Well, here it is…
Remember, you are looking at a routine that does not apply stop losses at the open, and yet it does not get in trouble. With a Ratio Hedger running alongside the maximum relative draw down is expected to be less than 35% at any given day. The maximal draw down is spelled out for you: 26.13%
This program works just as smoothly as transmission of my once favorite Mitshubishi Lancer used to.