Farward Testing versus Backtesting

The PROphet EA nailed a huge trade this week. For comparison I ran the same week on the backtester in MT4. To my surprise, the backtester didn't place any trades this week so far even though the EA actually did place atrade on a farward testing Demo Account. No matter how much you backtest, 90% is the most accuracy available. And nothing beats a farward test on a live account with real money.

Ready Set Fire!

So it's all set then. I finally figured out the "Publishing" feature within MT4. The platform has the ability to export live statements in html format via FTP. So the trick was to find a free webhosting site that allowed FTP imports. I finally found one that worked at 50g.com.

Now, the Virtual Server is set to export statements of the live demo accounts. All EA's have been running since December 7th of 2008 and they all started with $5100. Lets see how it goes. So far my favorite is Neuro-Martingale-Stochastic. It's up $160 (3.1%) in the past week and has managed to hold on to its profits.

A New Direction

I've determined a new course of action to take. The YukonFX Trading System did not fair very well during the tumultuous days of September and October. I successfully managed to wipe out my entire live account of $4200 USD. Since then I have backtested various settings within the Trading System. The only setting that are succsesful are so tone back that a normal year of market conditions is hardly profitable. I suppose that is inherent of the risk we run while trading on the Foreign Exchange.

So, I've been searching far and wide for profitable and stable EA for the MT4 platform. There are a ton of commercial systems availible and even more publicly availible on forums. In an effort to sort through the garabage of useless EAs and find the gems I've been backtesting and optimizing the one I've deemed viable.

Now, the farward testing begins.

Stay posted for when I start to publish more info on the EAs I've found that are totally free and profitable.

May Trading Results

For the month of May my trading account saw a 9% increase. I was strickly running the YukonFX trading system for this month. Trading Forex has never been so easy! It's completely automated and runs all by itself. I had it set for medium risk and just checked it every few days to see what the market was doing. I didn't have to pay attention to fundementals or technical indicators. No babysitting the computer either. It was great!

I've been studying, developing, testing and more studying for almost a full two years. Sometimes up to 4 hours a day. You can never look at too many charts. Now that a computer is doing all the trading for me I find it very liberating. I still look at charts and I still study, but not nearly as much as I used too. I've got alot more spare time on my hands now.

EUR/USD vs EUR/GBP Trading Idea

Here's a Trading Idea for ya. Utilizing the correlation between EUR/USD and EUR/GBP take opposing trades in the two pairs so you're still swap positive.

Example; 1.5 standard lots per every $10k of account balance. So 1.5 lot buy on the EUR/USD and a 1.5 lot sell on the EUR/GBP (assuming a $10k account balance). At a combined swap of $21 a day that's $630 a month on a $10k account. 6.3% just for holding the positions.

So on a daily basis the pairs move together 66.9% of the time. If there are equal and opposing positions then 37.1% of the time the combined positions will be in profit or loss. Wait out the loss at a holding rate of 6.3% a month and take profit when you reach 2%-5% of your original account balance.

Sound like it's time for a demo farward test. Good Pip Hunting.

My Story

Several years ago I began studying the Foreign Exchange Spot Market as a way of making money for my family and others. I started with the VT (Visual Trader) Platform because it’s programmable and I could test my ideas on historical market data. I worked with the VT Platform and programmed various trading strategy ideas for about a year. Unfortunately, my progress was stifled due to the inherent limitations of this platform.

During the summer of 2007 I came across a trading strategy that had a lot of potential and I wanted to test it. But it would require a different Trading Platform with more programmability and account features than VT. I found the MT (Meta Trader) Platform but realized the application used a different programming language that I was not familiar with.

I hired a great programmer over the Internet who had experience trading the Forex, and together we developed the Trading Strategy that I have been using live since November of 2007. It runs automatically on a dedicated, battery backed server in the United States and I check it once a day, via remote desktop, to look at the market.

The MT platform programmability has allowed us to test this strategy as far back as 2000. In doing so we have optimized the system for the best results during every kind of market condition. We are continually striving to make the YukonFX Trading System even better by testing new and different ideas to integrate with it.

Currently, the Trading System activates itself by using various technical indicators and only takes trades in a swap positive direction so daily interest is always accumulating. It's designed to function with a draw down that eventually earns itself into a profit.

At this point in time, it’s optimized for use on the EUR/JPY currency pair and it’s been designed to increase lot size as the account grows thereby effectively compounding performance. Even with flat market conditions this Trading System still profits from small fluctuations in price.

This past week I saw my account grow by 2.58%! Since November of 2007 I've averaged 2.61% a week. Let's see what this trading week has in store for us.

A new day is dawning

A new day and a brand new blog. The purpose of this blog is to write about my experiences with the YukonFX Trading System and life in the Yukon.