HomeDaily ResultsMegadroid Results: Tues 27th Sep 2011


Megadroid Results: Tues 27th Sep 2011 — 18 Comments

  1. The Market conditions are still pretty hostile. We’re seeing large swings on equities in the US session, that are spilling over into the Asian session and impacting the EUR/USD price action. While this is the case, the risk of stops occurring with Megadroid is going to be higher than it usually would be. This situation could persist for the rest of the year. I’d be surprised if we don’t have at least one more loss month this year. So a conservative approach to money management would be wise.

  2. Yeah, but Richard if that’s the case, do you think its wise to let MD run. What if one switches off until market stabilises.

    I mean I see that you’re lettin MD trade to make $ for you on the basis of probability theory. So you think that probability of MD making $ in hostile market condition is still enough to make $ at the end of the year?

    And if at the end of the year, let’s say MD is even, so wudnt that be like blockin money for a year? I am just discussin and trying to find out the best way to manage money, if I can get somethin that gives me 30-50% returns yearly, that would be just great for me. This is the reasong why I am using MD but I am still not sure if MD can GIVE 30% ROI. But I really hope that it does that in 2012. Cos if not MD, thrs no other robot that can be trusted for sure.

    Please let me know your views and your money management criteria.


  3. It’s a complex area.

    I personally start by working out how much $’s I’m prepared to risk, and work backwards to calculate the lot size I’ll trade with Megadroid. For me 250k lot total suits my risk tolerance with this strategy. I could easily trade 10x that if I wanted to, but I don’t want to be exposed to that level of risk. The account size is irrelevant. I just make sure there’s enough money in the account to place the trade sizes I want to.

    With trading and investing nothing is certain. Any good strategy/investment can turn bad. The key is managing the downside risk so if things go wrong you won’t get wiped out, and continue to look for new opportunities to replace strategies that have failed. For me, Megadroid is just one small piece in my overall investment strategy.

    20-30% pa return? Well, I doubt Warren Buffet has even made those sort of returns consistently, and he’s doing OK.

  4. I too got a trade today on Axitrader even though it says on the screen that trading has been disabled by RSM!! MD went long and made 9.8 pips. I will let the MD team know.

  5. Hi Richard
    Always enjoy your level-headed approach and comments. Which is why I’m moved to ask in response to your post above, whether you might share some insight in to what the other pieces of your investment strategy are? I realise it’s a cheeky question, but hey, maybe this is something you would not mind commenting on. Anyway, as always, thanks for running this great blog.

  6. Hi Armin,

    My overall investment strategy? It’s always evolving, but on the “Markets” I divide it into….

    1. Day Trading (40%) – Spot Fx, Futures, US Stocks
    2. Fixed income (50%) – I try to put as much of my excess trading capital into high yielding accounts
    3. Hedging (10%) – against wild fluctuations in the USD

    I hold minimal longer-term stock positions.

    When the markets get unstable, I move more money from the day trading accounts to the fixed income accounts.

    Day Trading activities…..

    Spot Fx: I don’t trade in this market as much I did in the past. I used to trade various EA’s – mostly ones’ I wrote – but nowadays Megadroid is the only one I trade on my live accounts.

    US Stocks. I mostly trade volatile small caps. Short-term trades – holding for hours to a few days. I’m experimenting with some breakout strategies, and shorting strategies. I occasionally trade large caps during market instability. I use a combination of technical and fundamentals. I’m still developing my trading style, and learning these markets. I’ve only had minimal/moderate success at this stage. I have a long way to go!

    Futures. I trade index futures mostly and some currency futures, using some strategies I’ve developed. Short term trades. I’ve done OK in this market.

    I guess I’m pretty much a strategy based trader.

  7. Hi Richard,

    I’ve just read you used to trade various EA’s – have you used FAP ? I’m using it in addition to MD since May. Results aren’t bad – specially on 5 of the 7 pairs that it trades.

    What were your experience on FAP? Are you still trading? Would you have any detailed results to share?


  8. Hi Roger,

    I haven’t used FAP since January 2010. Prior to that I was only trading the EURCHF pair. I had a lot of success from Feb 2009 through to around Sep 2009, but after that the trade counts dropped and and stop counts increased. I never had much success on the other pairs.

    I must admit I’m a bit out of date with that robot. I do have a licence, so perhaps I should re-evaluate things. They’ve probably made a lot of improvements since then.

  9. Hi Richard
    That is a very interesting way of breaking down one’s investment strategy. 50% in fixed income? Gosh, that’s a lot. Are we talking bonds? What kind of yields do you find you can get on average? And hedging as I understand it can take on a plethora of shapes… What financial instruments do you focus on for hedging? Sorry, I realise this blog may not be the place to be asking such specific and off-topic questions. I trust you will tell me to go away if you’ve had enough of this.

  10. Hi Armin,

    I use simple cash accounts for fixed income at the moment. They’re paying 5.35% pa for Australian Dollar accounts which is pretty good, and the money can be withdrawn at any time.

    Hedging. I live in Australia, so I need to hedge my USD assets against the AUD to smooth out the impact of wild swings in USD strength. For example, in October my USD assets depreciated 7% against the Australia dollar, but my hedge negated most this loss.

Leave a Reply

Your email address will not be published. Required fields are marked *