New trading strategy: MALeveler

May 30, 2010

Hi there..

Yesterday night I’ve got idea for very simple trading method. Over next 20 minutes I quickly coded first version and ran the backtest. Result blow my mind. The profits were so big that my jaw dropped.

Still, results were chaotic, big drawdown was here and there and so on. But since profit was very big, I decided to play with some money management code to reduce risk and maximize profits. Time went quickly, until it got really late in the night, but results were improving when I was adding extra features into code. So, for the night I’ve ran strategy optimizer to find better settings and went to sleep. This morning the results were even better – I’ve managed to control drawdown, get smooth equity curves and tons of profits. Unbelievable tons of profits, actually. After whole Sunday of backtesting now it is time to get the best params, open demo account and start watching it live. Fingers crossed

So, to give you the taste how good the results were, take a look at the 2 performance results below. They were done on about 3.5 years (2006.10.31  – 2010.05.20) on EUR/USD H1 chart. It was Alpari UK mini account. Initial deposit in both cases was $20. Yes, not $20k, just $20. First statement is fixed – all trades were done on 0.01 lots, for whole 3.5 years. The second statement is the same run, but with added compounding – as the account grew, lot size also grew. Do the math yourself.

Fixed one:

And the compounded one:

Due to file size restrictions I had to put the corresponding HTML reports into zip file. You can download it here: MALeveler_statements.