Really it takes more challenge to make scalping system at major pair rather then cross pair. Although they offer a lower spread then a cross pair, but they don’t have any dependency with the other pair.
Although when I create Volatily Scalp System actually to work with EURUSD pair, but until now I never finishing one EA that give a satisfaction result on this pair. The main problem that volatility changes in this pair since July 2008 broke my system.
Applying volatility level could little help to solve this problem. But no one knows when the volatility will be changed. And just like spread filter, somehow this filter can make EA will not work for a long time and may be not work at all.
At the moment I make new research at 5 Minutes Time Frame. Working with little time frame offering a big opportunity since the signals may come often. But the main reason to work a little frame to accommodate an increasing volatility. If you have download my VS_EUROCROSS EA, than you can test it at 5 Minutes Time Frame in EURCHF. You will find a better result especially if you test it since July 2008 when the volatility increase from this month.
An interesting result from my research in EURUSD, that my EA can produce almost a thousand pips from November 2008 to February 2009. And it’s a similar result if we compare to any system that work at same time trading except they trade the cross pair. However the EA keep suffering a deep drawdown. What make it difference that in high volatility the loss may come often than usual, but also the profit can be higher, many trades can be executed, and then may cover our loss faster.
This test just start only July 2008 using 0.1 lots each trade and therefore the result can also measured in pips. The lowest dropping in equity occurred at October, 24 2008 recorded at 9,538 and star to climb after that. It produces about 300 pips a month until February and record 10,835 at that month. Unfortunately it loss about 400 pips in March, but soon recover until end of test.
Tuesday, April 14, 2009
Risk Warning
Please note that Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.
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