How To Optimize the Settings of an Expert Advisor

After you have used your Forex robot for some time, you will be able to generate a table displaying the results for all the positions that you executed during that period. The next table presents four live test results registered by a Forex Expert Advisor. Ideally, you really acquire at least 20 results in order to calculate the performance parameters of your device.

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At this stage, you may be wondering if there is a technique or procedure that you can deploy in order to enhance the performance of your product by optimizing its settings. Yes, there is! For instance, many expert traders have discovered that they can achieve this objective by producing a chart showing the real performance for each result recorded. By studying these charts carefully, they found that they could detect improvements for their Forex robots by acquiring significant knowledge about how precisely their tools performed under different prevailing market conditions. As such, you can do the same by gaining vital insights into how to update and increase the profitability of your expert advisor. For example, the next chart displays the details for the first ticket.

 

Trade 4386972

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The above chart shows that price was initially trapped within a tight trading range between the upper and lower break lines. Price then broke above the bull break line towards the right of the chart. The EA activated a new long position after the current candlestick also closed above this bullish break line providing additional confirmation that a new bull trend was forming. A profit of $3300 was gained after the trade hit its profit target at 1.4800.

 

Trade 4387683

 

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The above chart shows that price was initially trapped within a trading range comprising a sloping upper break line and a horizontal lower one. Price then broke below the bear break line towards the right of the chart. The Forex Robot opened a new short position after the current candlestick also closed below this bearish break line providing additional confirmation that a new bear trend was forming. A profit of $3600 was gained after the trade hit its profit target at 1.2850.

 

Trade 4388541

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The above chart shows that price was initially trapped within a tight trading range between upper and lower break lines. Price then broke above the bull break line towards the right of the chart. The expert advisor subsequently initiated a new long position after the current candlestick also closed above this bullish break line providing additional confirmation that a new bull trend could be forming. A profit of $4050 was gained after the trade hit its profit target at 1.3410.

Trade 4389442

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The above chart shows that price was initially trapped within a trading range comprising a horizontal resistance level and a sloping lower break line. Price then broke below the bearish break line towards the right of the chart. The Forex robot then instigated a new short position after the current candlestick also closed below this break line providing additional confirmation that a new bear trend could be forming. A profit of $500 was gained after the trade hit its profit target at S1.

From studying the above examples, you can verify that they confirm the power of this Forex expert advisor. However, by undertaking such a detailed study you may be able to identify weaknesses in your robot that could be modified and improved. Consequently, you could take actions to enhance the performance of your Forex Expert Advisor, such as using a number of different currency pairs and time frames, etc.

 

Evaluating the Performance of your Forex Robot

Once you have successfully acquired a batch of test results you can use them to calculate the win-to-loss ratio and expectancy value of your product. You can then assess how well your robot performed by asking pertinent questions, such as the following:

1. How many wins and losses were recorded?

2. Was a positive win-to-loss ratio produced?

3. What was the average size win compared to the average size loss?

4. Was a positive risk-to-reward ratio generated?

5. Was a positive expectancy value recorded?

6. How many breakouts turned into fakeouts?

7. Which time-frame did the robot performed best with?

8. Which currency pair produced the best results?

9. What was the optimum size for the stop-loss?

10. What was the optimum size for the profit target?

11. How did the expert advisor cope with volatility and respond to price spikes?

12. Did fundamental events affect your Forex Robot?

By answering such questions, you will be able to fine-tune the performance of your automatic software product. However, you must remember to re-calculate the win-to-loss ratio and expectancy value of your robot every time you make a modification in order to compare them to previous versions.

 

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