June 2011 Summary
MB Trading : 13 Trades: -17.4 pips GO Markets : 12 Trades: 5.8 pips InterbankFx : 15 Trades: -68.9 pips InterbankFx AU : 15 Trades: -64.7 pips FxPro : 15 Trades: -63.0 pips Alpari UK (Micro-1): 13 Trades: -34.8 pips Alpari UK (Classic): 13 Trades: -11.7 pips FXDD : 11 Trades: -43.8 pips AxiTrader : 12 Trades: -24.8 pips FxSol : 13 Trades: -61.0 pips Average = -38.4 pips, Profit = -$961 (e.g trading 250k lot EUR/USD)
hi richard
can you tell me wich size of lot and wich risk you put in megadroid with your alpari clasic account.
i want to know if for example the account its with 10000u$, whats the best size of lot and whats the best risk level thet i need setup in a megadroid.
thanks a lot,
and also if the account its with 50000u$ whats the best size of lot and whats the best risk level thet i need setup in a megadroid.
thanks a lot,
magiaint
Hi magiaint,
I don’t use the Risk level setting. I trade using fixed lots.
I personally trade a total of about 250k EUR/USD lots divided across my 10 trading accounts. In theory that means 25k EUR/USD on each account, but in practice I skew the lot size toward my trading accounts that are performing better to optimize my returns, using the results I’m tracking in this blog.
So, overall I’m trading $25/pip, fixed. I don’t compound. I just make sure I have enough money in the accounts to trade the lot sizes I want.
How much you trade really depends on your own risk tolerance, rather than the size of your trading account. Remember Megadroid can lose as much as 120 pips on one day. In my case that would result in a $3000 USD loss. That’s about the limit of my risk tolerance. I could easily trade 500k lot if I wanted to, but I’m not comfortable with that degree of risk exposure.
So, the point I’m making is the amount you trade really is a personal decision based on how much you’re prepared to risk in dollar terms, rather than the size of the trading account.
Hi richard
thanks for your reply
So if the account its for example around 10000u$, can you recomend to me whats the good lot, or the indicated lot that i need setup in my megadroid.
i will apreciate your answer,
thanks a lot
magiaint
Hi magiaint,
I can’t recommend how much you should trade, because as I mentioned it depends on your own risk tolerance, and financial situation.
Richard,
May be it’s of topic, but I see that FxPro is much better then lets say FxDD. I closed FxPro account about half a year ago (found your site only about 2 month ago) just because my FxDD account was doing much better. Also I dropped from Tadawul, Alpari, and FxCm (still have account but relatively small)
Just looked at your monthly summaries, FxPro is one of the best performers, if not the best.
Any global guess why we got different results in FxPro vs FxDD?
Hi Ruslan,
There’s probably several reasons as to why FxPro perform better that FXDD with Megadroid e.g. more instances of higher spreads preventing trades, re-quotes etc. FXDD has still been profitable for me though.
Hi Richard,
Interesting to see how you have spread 250k around 10 accounts. On the other hand, I am trading 1500k on one single account, i.e, FinFx ECN.
My aim is to see how it performs for a month. Risk level is set to 0 and fixed lot size of 1500k.
What is the average numbe rof monthly pips that you expect from MD? Surfing through the site, I think it made 200 pips/year.
And have you ever encountered 120 pips loss on MD trade?
Cheers.
Jagstrack
Hi Jagstrack,
My Monthly Results should give you a good indication of past performance. I’ve posted all my trades back to March 2010. You’ll see that good months are generally around 7 trades / 30-40 pips. I’ve had around 3 losing months over the past 12 months. In June 2009 I lost 130 pips on one day, and only last month I had 2 open positions in drawdown a total of 120 pips, that were very lucky to close at break even. So 120 pip losses can occur in a day. Also, variation in broker performance can have a large impact on results as well. For example, my Go Markets account has performed worse than my other accounts.
I’m not sure if 1 month of trading will tell you much about Megadroid. You really need to consider the performance over a 6 to 12 month period, because there’ll always be good and bad months. That’s just the nature of trading. No trading strategy produces profits every month. Loss months will happen.
The other important thing to consider is that past performance does not guarantee future performance. Any strategy can fail. If I knew for certain that Megadroid was going to perform as well as the past 12 months, I’d be trading 2500k lot instead of 250k. But of course I don’t. That’s the uncertainty.
Hi Rich,
June’s month seems pretty dim now. With all these frequent losses, I am gettin little skeptical about MD.
Has MD changed from a stable bot to just a pip bot? It has been so stubborn, it did not even make good exit. I think its chasin pride and pips. What are your views? Do you think the newer version is little too aggressive? Are MD days over?
Let me hear you views.
TC
Jags
Hi Jagstrack,
This is pretty normal. Megadroid generally has a full loss every few months.
Hi Jagstrack
I’ve been recording on Alpari UK Mini, and since the switch to the new version, MD has actually picked up, please see my graph pic here posted yesterday
https://docs.google.com/leaf?id=0B432m0IV5fCaMjQ3ZTk4MDYtOGMxMi00YTk2LTgyMzMtMmM0MTQzOWRlOTc5&hl=en_US
Hi mates,
Thanks you Marius for the graph and Richard for your reply. Yeah I see that MD new version has picked up. But if so, I hope we get better trades during the next month.
Each time MD breaks even, I pay alot of comission, and that’s kind of disadvantage of an ENC broker, so it’s kind of frustrating. But what I noticed that at times MD was in profit of +5 to +8 pips but it did not close the trade nor did it make a good exit when it was in a loss. So I was wondering if the new version is little aggressive and more stubborn.
In the old version I founded a very stable bot. And that’s what I liked about it. But MD has to win back my trust and make a succesful july, if not June.
Anyways, its exciting to keep a track of trades made by MD and share views around on this webpage.
Take care
Jags.
Hi Marius,
One thing I forgot to mention was that in your graph I can see that previous version had a smoother curvature. That shows the stability of the version, but newer, though more profitable, has up and downs.
🙂
Hi Richard
There seems to be quite a big difference between the MD site and your results – do you know why this could be? I had a look and unless I did something obviously wrong, MD cam back with a win since June 2010 of 766.1 pips against yours of 350 pips which is quite a disparity. They also didn’t have a trade for April 2011 in there either.
Would this be down to risk settings – I think I’m correct in that you don’t use the recover mode or the aggressive setting?
Cheers
Stuart
Hi Stuart,
“Official Results”
I’m not sure. I’ve never looked at the results on the official site.
This blog is just my own personal trade journal. I use it to work out how Megadroid is performing over-time and which brokers are performing better so that I can optimize my trading returns. Prior to June 2010, I used to just record this information on an Excel spreadsheet.
“Risk Settings and Recovery Mode”
These parameters only influence the size of the lots traded, not the number of trades. So they won’t impact pip returns. “Risk Setting” allows Megadroid to automatically upscale the lot size traded, based on the account balance. “Recovery Mode”, causes Megadroid to double the lot sizes after a few consecutive losses. I don’t use either of those features. I trade fixed lots, with recovery mode disabled.
“Aggressive Mode”
I trade with this enabled. It will cause Megadroid to trade the S2 trades, in addition to the standard S1 type trades. So enabling this feature will cause more trades, and influence the pip returns.
You can find the settings I use for my accounts here – Default Megadroid Settings – Version 1.35