HomeDaily ResultsMegadroid Results: Tues 28th May 2013


Megadroid Results: Tues 28th May 2013 — 12 Comments

  1. Hi Richard,
    Not sure what you can do about this. The new strategy in V1.40 seems to make comparing trades by pips alone a bit mis-leading. It may not matter when you are using fixed lots but if you let MD decide on the size then it makes a difference.
    Today is a good example. On my account (GoMarkets) the second trade the lot sizing was much larger. It appears to do this by design so that it requires less pip profit in order to draw even. On my account on was -2.6 Pips loss but overall was in profit by a small amount.
    Not sure how you can show this on this site without showing lot size.

  2. I actually use fix lot sizing, so both orders are the same size for me.

    I did run a test a little while ago with Risk Level set to non-zero, and noticed that both trade sizes were a little different. However the second trade was smaller than the first trade. I assume that this was because Megadroid uses free account margin to calculate the lot size, and there would be less margin available when the 2nd trade was opened.

  3. Interesting,
    So how does 1.40 handle split trades with your fixed lot size set up (i.e 2 trades opened at the same time)? Are they of equal size or is it 2 trades that are half the size of a usual non-split trade?
    In the default risk settings, split trades have half the usual lot size. This makes comparing trades on this site more difficult for the casual observer.
    For example compare these two trades from the 14th may
    Alpari UK (Classic): 1 Trades: 2.8 pips
    FXDD : 2 Trades: 5.7 pips

    To the casual observer it looks like FXDD is twice as good (and would have delivered twice the profit). In reality under the default settings these two trades would have delivered the same % profit since the FXDD would have been 2 traded at half the usual lot size.
    Similar issue arises with situation like on the 28th of May. In the default settings MD 1.40 may open a second trade with a very different lot size in order to save the first trade which was going bad. Comparing total pips on this doesn’t give the full picture on overall profitability.

    In short, the lot sizing in 1.40 is far more sophisticated and has a big impact on profitability.
    Is there any way that this could be represented on this site?

  4. With fixed size (which is what I use), each trade is the same size. So the net pips, which I record on this blog, is tracking my performance accurately.

    When I ran my test with non- fixed lots , the size difference was small. But the difference will depend on how much margin the first trade uses. So if the first trade uses say 40% of your account margin, the 2nd trade size will probably be calculated on the remaining 60% and so will be much smaller in size. However, If the first trade only used say 5% account margin, then the second trade would likely be almost identical in size because it’d be calculated on the remaining 95% margin. So it really depends on how aggressively you leverage.

  5. Wow that’s interesting. So for split trades you have double the usual about on the line and are effectively doubling you risk?

  6. Before V1.40 I often had an S1 and S2 trade open. Now on occasions I have 2 S1 trades and 1 S2 open.

    So before Version 1.40 I had 1-2 trades open at a time, and now I have 1-3 open. So my $risk has definitely increased but not doubled. I’ve probably increased my risk by about 50% on average, but trades are getting closed out earlier with version 1.40 because of the averaging down strategy, so that might reduce my overall risk if that makes sense.

  7. Hi Richard,

    I think you are missing the point in your last answers when you bring up margin. eg on 28.5.13 MD placed a trade of 3.86 Lots for me and 2 hrs latter as the trade went into drawdown it placed another trade of 5.79 Lots. This makes it difficult for us to compare our $$ returns with yours when you use constant lots unfortunately.

  8. Thanks for clearing that up Aspro,
    In addition to that it appears Richard is now also increasing his risk with the new split trades feature when it is meant to reduce risk.
    For example, on a regular S1 or S2 trades my lot size is 5.2 (this slowly grows with equity). When it opens a split trade (i.e 2 x S1 opening at the same time) the lot size is 2.7 lots x 2 trades. It appears to be doing this deliberately to split the risk as well as split the trade. It seems to ignore this methodology with fixed lot sizing and effectively increasing the risk.
    As I first pointed out this also makes it difficult to compare split trades since the total profit is the same with a split trade but the pip profit is double.

  9. Hi Aspro,

    I understand what you’re saying it’s just that I trade fixed size (RiskLevel = 0), so each of my trades have the same lot size.

    So I have no way of knowing the difference in lot size between the first and second trades.

    I can’t really see any easy solution, unless I change from fix lot sizing to variable lot sizing , which I’m reluctant to do. I’ve always traded Megadroid with fixed size because it allows be to control the risk.

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