Forex strategy builder – Generating the strategies, from Basic Cryptocurrency trading course


Hello dear traders, it`s Petko Aleksandrov
from EA Forex Academy and I will continue now with the generation of the
strategies with Expert Advisor Studio, the strategy builder that we are using
currently. What I have done in the previous lecture? I have imported the
history data from the Meta Trader. If I go to data import you will see that
I have imported Pepperstone Demo 01, this is the server. So, this is the
brokers data from the server where is our demo account with the Bitcoin, the Dash, the Ethereum and the Litecoin. And now if I go to generator you will see that as a
history data, data source I have Pepperstone 01 and if I choose the drop down
menu you will see I have the Bitcoin, the Dash, the Ethereum and the Litecoin. OK? So, now we are ready to work. What is the generator? Simply, the generator, guys, is an
automated process which based on the history data, we have imported in the
strategy builder, will generate for us strategies and we can after that export
these strategies as Expert Advisors or robots and place them on the trading
platform and they will trade automatically. Now what will happen? I
will go quickly over the menu in EA Studio. What will happen after the
generator starts working? It will put the profitable strategies into a collection.
Now, with the collection we have many filters that we can add and you will see
here the strategies. After that we can open each strategy right over here into
a strategy and the nice thing here is that if you have already some strategy,
some existing strategy, if you found any strategy over internet, someone share
the video and so on, you can immediately see if this strategy is working
profitably or not and this is very important because this saves us so much
time. OK? Let me just quickly show you what I mean? Pure example here, guys, so for example if I choose
Pepperstone, let’s say randomly I take the Dash. OK? This is the time frame
on H1 hour and you will see here I have the history data from 2017-29 of June until today. This is the spread and here what we have is the strategy. So, here you
can add a Stop Loss and aTake Profit if you have into your strategy and here you
add the entry and the exit conditions. So, you see here is selected long entry. This
means that we put entry conditions for buy. OK? So, for example let’s take
randomly the moving average that I have showed you in the first lecture in this
section about the indicators period of 21, let’s make it. And you see here are
the conditions, so moving average rises, moving average falls, the bar opens
above moving average. So, if the bar opens above the moving average it means it
was below the moving average and it will open above it, it means there is a cross
of the moving average. And I click on accept and you will see what is the
result, it’s a total loss. So, even I put more indicators, randomly indicators
chosen, for example let’s take the MACD and I select MACD line rises, I click on
accept you will see this strategy is still losing. And this is very important,
guys, because if you have any strategy using indicators normally what people do
they put this strategy on a demo account, they test it for one month, two months
until they realize actually the strategy is losing and they start changing
parameters, so for example they try with 15 and they try with 10, and they look in
YouTube people trying with different, and they change it, and change it and never
ever actually having any profits or some good trade, some bad trade and they leave
frustrated. Now, the idea here is that you see the result immediately. Just on the
moment I see the strategy is losing and I don’t want to use it. OK? So, here
if you have any ready strategy, if you want to test the strategy, you put your
entry conditions, you put your Stop Loss, you put your exit conditions and you
will see the results immediately. Now for every strategy there is the
optimizer. This means that I can optimize the strategy inputs. OK? And this
actually means that the strategy builder will find better parameters for this
indicators. The other thing is the Monte Carlo which is a test for robustness. We
have Multi Market, so here we can test if this strategy is working on another
strategies, on the other markets like the Bitcoin, the Ethereum and the Litecoin. And here is the report of the strategies, all the statistics that we have, the next
balance, maximum drawdown, the biggest loss in percentage, return to
drawdown ratio, count of trades, how many trades we have, ambiguous bars and
so on, and so on. Guys, I’m not going into deep details about the strategy builder.
Simply, this is a little bit advanced and I have a couple of courses actually
about algorithmic trading and how you need to use exactly the EA Studio. But
here I want to show you a brief presentation, so you will have an idea at
the end of the course what is algorithmic trading, what are the
strategy builders and how we create strategies. All right? So, one more time here we have many tests for each strategy. And the last thing on the menu here is the
portfolio-this is the very innovative thing here in EA studio, something that
is not available with the other strategy builders. Here you can trade many
strategies in one robot. OK? So, many strategies you can put it on the
Meta Trader and they will trade for you automatically. Now, if I go to the generator
and this strategy that I had it, I will just remove it from the collection, I
will go back to the generator now and I will show you how I am using the
generator to generate strategies for me. So for
example, I will choose Pepperstone Bitcoin H1, this is on H1 chart and I
will go to strategy properties. So, here is the entry lots that we want to enter.
Let’s say we want to go with 0.1 I choose whether I want to use a
Stop Loss or a Take Profit. If I select always use this means I want always to
have a Stop Loss and a Take Profit. And the other options is may use, so I will leave
it on the software to decide whether to use a Stop Loss or a Take Profit. And do
not use, obviously I don’t want to use Stop Losses or Take Profits. OK? So, now I
will choose always use and since the spread is $100 with the Bitcoin. OK? I
will need to write 10,000 of a pips. So, here is the point. OK? Just before the
last two. And I will give it a little bit bigger range here.The idea here I don’t
want to limit with any criteria the strategy builder but to give it a huge
range to find more strategies. Now, the generator settings is where we choose
the working minutes. How long time the generator will generate strategies for
us? Normally what I do, guys? I set it approximately to 8-9 hours
simply at the end of the working day I set the generator working and in the
morning when I’m in the office I have ready strategies, ready
collections and simply the generator is working while I am sleeping. So, here what
I will choose? I will leave it for example to 500 minutes and here I will
select Search best-this is the criteria that we want to arrange our strategies.
Net balance obviously is the most important which strategy makes the most
profit. In sample and out of sample, I’m not using this one at the moment, I’m not
going into details about it. The strategies fulfill the acceptance
criteria. So, what is the acceptance criteria? We can add many things to the
acceptance criteria, but the basic is how many ambiguous bars you
would like to have. Basically, these are the false bars from the Meta Trader. There
are some bars where the software cannot decide, for example you see these huge
bars with the Bitcoin and if we have some entry or exit conditions in such
huge bar we don’t know exactly what happened inside this day when the price
went up, when it went low, what we know are the four values-the open, the high,
the low and the close. But for example, if we enter in the middle then we have
Stop Loss, then we have a Take Profit if we were selling for example. The software
doesn’t know exactly what happened during this day, where the price went
first, did it went higher, did it went lower and this is specially on the daily
chart, that’s why we do the strategies normally on H1 and H4, sometimes on M30 but very rarely on D1 to avoid exactly these ambiguous bars because on
the hourly chart we have less ambiguous bars. OK? So, let’s call it simply, these are the false bars where the program cannot
decide what happened during this bar and specially on the higher time frames. The
next thing is the minimum net profit, how much minimum net profit we want to have.
So, let’s say for example $100 and what minimum count of trades we
would like to have 50, I will just leave it this way. So, here you can add
some more criterias if you want to the strategy and what this means? If I go
back to the generator that it will show only strategies that fulfill the
acceptance criteria. Now, if I click on start you will see here the speed of the
software, it’s really, really quick, guys. These are the calculated strategies and
you see already I have some strategies into my collection. If I go to collection
you will see here that I have one strategy into the collection only, but
here is written 8, now I have 2. Why is that? This is because I have here
these filters, Passed strategies 2 out of the 8. For example I have selected 2 strategies filters that I would like to have maximum equity
drawdown of 5% if I just remove that and I remove this minimum profit factor
as well you will see I see all the strategies into the collection. And they
are arranging by the profit, you see the first strategy made $750 and then
we have the others going down. So, from here I can add some filters-maximum
ambiguous bar, but we have this an acceptance criteria, the maximum balanced deviation,
maximum consecutive losses, count of trades, equity drawdown, this is the
thing I was setting to 5%. So, you see here from 31 strategies I have only 10
shown which were having a less than 5% equity drawdown during the whole
period. And as well you can add too many filters here, guys, profit factor as well
I prefer to stay at 1.2. I prefer to stay at 1.5 even and not only 2 so I have a
bigger profit factor. Now the other filter that I normally use here is
maximum consecutive losses. So, normally I don’t want to have more than 10
consecutive losses. See for example if I place 20 I will have more strategies
into the collection 7 out of the 70, if I place 10 they will call lower, and if I
place 15 you will see that I have only 7, and if I place 5 for example you see
only 1 strategy will pass. So, I will leave it to 10 and what I will do now,
guys? I will leave this generator working for the whole night and tomorrow I will
continue recording the course. I will leave it for 500 minutes to work and to
generate strategies for me. As you can see the Expert Advisor Studio generated
more than 11,000 strategies into the collection are 96
but because of the filters I see only 7 strategies over here. And tomorrow
I will continue and I will show you how I am actually exporting strategy
into an Expert Advisor and how to place it on Meta Trader for trading. Now if I
click on each strategy you can see here are the entry rules the Stop Loss and the
Take Profit we have the awesome oscillator, the RVI signal, moving average
crossover just what I was showing you as an example but here is actually an exit
condition and if I click over the chart you can see the indicators and you can
see exactly where the trades happened, where was the entry, where was the
exit for all of the periods. And for each strategy you have the indicator chart,
the balance chart, the equity and you have the journal. So, here are the actual
trades that happened during this period of time and here we have all the
statistics for each strategy- net balance, maximum drawdown, return to drawdown
ratio, count of trades, ambiguous bars, profit per day on an average basis,
win to loss ratio, sharpe ratio and so on, so many things that I am not going
into details. But the idea here, guys, is that we do this automatically. OK? The
Expert Advisor Studio calculates for us the strategies, we just need to set up the
inputs that we want, the criterias that we want and it’s very important that
these strategies are created over the same server where I will be trading and
they’re using the same history data. The very nice thing with EA Studio since
it’s a web based program is that during the same time while I am generating
these strategies for the Bitcoin I can open a new page and I will go again to
EA studio but the important thing here is to make it on a separate browser
because this way EA Studio works faster. I will just login in here as well. And I
will do the same generation for the other
cryptocurrency. So, I will do it with the Dash now, also for H1 chart and then I will
go to strategy properties, here 0.1 and let’s see how much was the
spread with the Dash. So, if I go to strategy and I select it, you will see it here
the Dash it’s 1100, so I go back to the generator. I always put the minimum as
spread and here I just give it a bigger range, so I will use this as minimum as
well for the Take Profit. The generator settings also 500 minutes here. Let’s see
the acceptance criteria. We said we want minimum $100 of profit for our
strategies and that’s it pretty much. I click on Start and now the generator
will start creating strategies. Now I will open in one more browser another
EA Studio and I will run there for the Ethereum, and I will run as well for the
Litecoin. OK? So, I’m going to my account, login, I go to the generator and let’s
see first how much was the spread. So, from here I choose Pepperstone
Demo 1 and here I choose Ethereum. The spread was 700, go to generator I choose
the wanted cryptocurrency. So, I’m going to Ethereum, I select H1 as well and I’m
going to strategy properties, entry lot 0.1 again I will enter. I will put
minimum of 700 as I said this is the spread, another bigger number here and
then 700 here. The acceptance criteria 500 minutes, let me see here I will put
it again minimum net profit of $100, generator and I click on start. OK? And
the last one I will open one more browser, the last
cryptocurrency. OK? I go to EA studio I will just quickly login and I am going
to the generator and first let’s see again the spread, go to strategy I
choose the broker server and I choose the Litecoin. So, here I have 500 as a
spread. I’m going to generator 500 is $5, guys. OK? Because this is in pips to
make it sure I am clear. Pepperstone Demo 01 and I’m going to Litecoin and
I’m going to H1 again. Strategy properties, so the minimum is
the spread here is exactly like that. I will give a little bit bigger range
again, I will go to 0.1. The strategy properties here I will go for 500
minutes again and acceptance criteria I would like to have minimum of $100.
I am going to generator, I click on start and now I have these 4
generators as you can see working over here, guys, and I will leave them over the
night. So, tomorrow morning what I will have? I will have ready strategies into
the collection, already hundreds of strategies, these are different
strategies. What we do after that? We select the best ones and we place them
on a demo account for trading and after that we follow their performance. I will
show you how we follow the performance of the Expert Advisors, guys, and we place
on a separate live account only the best Expert Advisors. So, simply this way we
automate the whole process and we use these strategy builders in order to
create for us hundreds of strategies on a realistic back tested result. So, anyway
guys, this process would be impossible if we don’t have these strategy builders
because even we have some strategies for manual trading, they are not so many and
their result it’s very hard to be back tested. And actually to automate this
whole process takes so much time if I use for example developers because I was
using this system for a long time, I was giving strategies
to developers to automate my strategies. Obviously this was horrible process, it
was taking so much time and so much money because one strategy, one simple
strategy like this one to be automated by a developer that would cost somewhere
around $200 to $300, guys, depending on the entry conditions they charge you
even more and they take so much money. Obviously, in the code of the Expert
Advisor of the robot it’s very possible to have mistakes. So, with the
strategy builders we eliminate the mistakes and we are sure into the code.
And obviously guys, this gives us the opportunity to trade portfolio of
different strategies. So for example, what I will do? I will select the best 3
strategies from the Bitcoin, the best 3 strategies from the Ethereum, the
Lite, and the Dash. And I will have 12 different strategies on 4 different cryptocurrencies and I will place them in one and the same trading account which will
give me a good diversification of the risk. OK? So, I will not put all the risk
into one strategy, into one Expert Advisor, into one cryptocurrencies but I
will divide the risk, I will diversify the risk. So, this is pretty much about it.
There are free videos over internet how to use EA studio, there are free
materials, so that’s why I’m not going into details, guys. In the help of the EA
Studio there is so much more information about each one section, I just showed you
the very basic, so you can have an idea what are the strategy builders, how we
create strategies, hundreds of strategies, actually thousands of strategies because
you see here I have already just 3% from the progress and I have
nearly 30,000 strategies calculated. Into the collection I see always the top 100
and with the filters that I’m using at the current moment I see only 19
strategies. So, I will continue the videos tomorrow and I will show you how I
export these strategies and how I put them on Meta Trader for trading. Thank
you, guys, for watching, wish you always have a great day.
Cheers, bye.

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