Today I would like to present you our latest development, an important update of the commercial Expert Advisor (EA) Tricky Twister, and discuss new trading possibilities that are opened by this update. As discussed in the previous article about Tricky Twister, this EA consists of two complementary strategies, the first one (BreakOut) trading the breakout of the price from the price channel, whereas the second (Range) trading the pull-back’s of the price after directional movement. Up to now, we provided for our users two kinds of preset settings for the EA that corresponded to two different trading schemes. The first scheme included simultaneous trading of both strategies for the most liquid pairs, EURUSD and GBPUSD. The second scheme relied on trading only the Range strategy for the pairs that are known to stay within some price range for the most part of the time.
Now we are introducing the third trading scheme for Tricky Twister. This new scheme does not replace the previous two but extends the trading possibilities of the EA. Which trading scheme to choose is a matter of taste and preferences of each user and, to a certain extent, a matter of the size of the deposit.
Why do we need a third scheme at all? What is wrong with the first two? The point is that the first two schemes impose rather strict requirements on the minimal size of the deposit. The recommended deposit size was 10,000$ for dollar accounts and 10,000 cents for cent accounts. Our experience shows that most users are trading commercial martingale EAs on deposits of about 1,000$. So, they have to use cents accounts or their equivalents. But it is well known that the trading conditions on cent accounts are much worse than those for regular dollar accounts: quality of execution is lower and spreads are higher. Many good brokers do not provide cent accounts at all.
So, our main goal was to find such settings for Tricky Twister that allow us to trade with deposits of 1,000$ и 2,000$ on a regular dollar account with minimal lot 0.01. We found out that we are able to develop such settings. However, the number of trades in this case will be not very large, so trading one currency pair won’t be very profitable. The solution of this problem is obvious: trading a portfolio of different currency pairs.
So, our new trading concept with Tricky Twister.
We will trade simultaneously many (about ten) currency pairs. In order to avoid risk of correlated drawdown on many pairs, we introduce a control center that monitors the number of simultaneously traded pairs. If this number reaches the prescribed value (e.g., two), trading on other pairs will be blocked. In addition, the control center monitors the open drawdown on the account. If the open drawdown reaches the prescribed level (e.g., 10%), trading on other pairs will be blocked. Having introduced such control, we can increase the number of trading pairs without increasing the trading risks and the marginal load on the deposit.
In addition, we introduce new safety measures in EA that can be activated by the user. First, the user now can set up the maximal allowed drawdown of the orders opened by EA. If the drawdown exceeds this level, EA will close all the orders and stop trading. Another new safety measure is the stoploss level of the total basket. If the maximal number of basket levels is reached and the price moves against the basket for a given number of pips, EA will close all the orders and stop trading.
Together with the updated EA, we provide new settings for the Range strategy for ten currency pairs (AUDCAD, AUDNZD, EURCAD, EURGBP, EURUSD, GBPAUD, GBPCAD, GBPUSD, NZDCAD, NZDUSD). For each currency pair, there are two kind of settings, the first one for the minimal deposit of $1000, and the second one for the minimal deposit of $2000. Of course, these settings can also be used for trading on larger deposits; EA will automatically recalculate the starting lot according the size of the deposit.
It is recommended to use new settings on regular accounts (not cent accounts). It is important to pay close attention to the choice of broker, in particularly to the value of spreads that are offered by the broker. Each set of settings is accompanied by a history backtest with 99% modeling quality. For each backtest, the value of the used spread is given. (AveragespreadvaluesofPepperstonebrokerwereused.) Check that your broker offers spreads which are comparable with spreads in backtests.
ARGOlab team hopes that the new possibilities and new settings of Tricky Twister will be helphul for many users of this EA.
Trading results http://trickytwister.com/performance/
Attention: special offer
Readers of our blog can purchase Tricky Twister Fx with discount of 25% from the regular price. Instead of $229, you will pay only $169, thus saving $60.
Author: Vladimir aka loopsider