Successful Trading with an Algo Part 3

The point where an algo becomes interesting is when you see you have got something. The pics below shows the stats to a simple basic ES algo I have been using for a long time. It can be the finished algo or just a starting point for more improvements.


All the FloBot students get it and can then use it as is or adapt it to their needs. All it does is identify the trend and trades the pullbacks.

These results are for the period from the end of February until Friday this year. The algo covers 7am until 9pm London time = 2am until 4pm New York time. It is set on a profit of 1 ES point or $50. All entries are LIMIT entries and the backtesting requires that price pass through the limit by at least one tick. Slippage is not a real factor due to the fact it is the ES and the majority of stops would be elected without that problem.


This algo is good to go as it is for me.
$15,000 profit for 1 contract after commissions
Drawdown of less than $2,000
88.87% Win Rate
Over 1,000 trades sample size


But OK, you want to make more money than these stats or to increase the average trade amount or other stat.


What can you do?


Firstly, look at the times of day that there are losing trades. Is there a pattern?


Next, look at the losing trades. Is there a filter that is DYNAMIC (adjusts itself with market changes) that filters out losers?


Then, look how you can increase the 1 ES point $50 target using DYNAMIC exits.


The requirement, after you've done all the work and due diligence, is to leave the algo alone and let it do it's thing.