Wednesday, November 21, 2007

My First Expert Advisor Trading Review

Despite a great start and some promising results from my EA, the system soon endured a string of losses which at the end erased all of its gains from overnight.

Glitch and Fast Markets
Part of the trading losses were caused by a glitch in the trading platform during today's fast market action (as 200-pip moves were seen in both GBP/USD and AUS/USD markets). My live data feed seems to have slowed a few ticks and, believe it or not, it did make a difference to the final trading outcome. I have already compared my live data feed with other running platform and there was definitely an issue with my trading platform/processor.

Yen Trading in New Territory
On the other hand, the system also suffered one significant losses due to a long USD/JPY position. The currency pair was breaking into new trading territory today. The yen rose to the highest level in more than two years against the dollar. It was actually quite an expected result as I knew from the record of backtesting that my system does not like new trading ranges.

*View my EA trading history.

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