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"I want 20% equity grow on my account every month,
can FractalWizard EA achieve that?"
Please
read this page carefully before you
run
FractalWizard on Live account!
IMPORTANT!
1. You must delete
every variable in Global Variables at your MT4 platform
before you start FractalWizard EA.
To
delete the Global Variables:
-
On the Tools menu,
click Global Variables (or Press F3 button).
-
Press Delete button to
delete the Global Variable.
-
Continue until all
Global Variable has been deleted.
After
the FractalWizard EA starts, DO NOT change
anything inside the Global Variables.
FractalWizard EA needs those variables to continue
trading if somehow your MT4 platform closed.
If you need to start the EA from the beginning (or new
account), you need to delete all Global Variables
again...THIS IS VERY IMPORTANT!
2. Fractal
Wizard version 2.0 works on EURUSD pair, using H4
period.
3. You
need to run the FractalWizard EA continuously in order
the EA to work successfully, so you need a good PC and
internet connection that can run 24 hours/day. There is
a lot of VPS hosting or dedicated server that you can
rent it below $50/month.
4. I do not recommend
to use FractalWizard EA with other EA on the same account.
FractalWizard EA from time to time needs to calculate
the account drawdown and equity balance to close
positions.
Minimum account size for FractalWizard
EA:
-
Standard Account:
USD 1,000.
Bigger account size produce better results
(because of the compounding effect).
-
Mini Account:
USD 500.
I find anomalies at fractals pattern on Mini account, I recommend using
Standard Account.
At FractalWizard there are
3 important parameters:
How much maximum Risk
Setting can I set to my account?
The answer is 20.
But please take a look at
this back testing result below (2004/09/01 - 2007/12/12)
~ 3.5 years,
(Risk Setting = 10; Aggressive set to FALSE):
With Risk_Setting=10, resulted
ROI (Return On Inevstment): 280,831 (1100%) for 3.5 years
back testing, drawdown up to 23.04%.
I
suggest 10 is the maximum Risk_Setting you set on your
Live account.
For those who do not have
stomach to sustain 25-30% drawdown on your account,
I suggest you set smaller Risk_Setting.
This is back testing
result using Risk Setting = 5; Aggressive set to FALSE.
With Risk_Setting=5, resulted
ROI: 60,473 (241%), the drawdown down
to 18.7% (below 20%),
which I think most of people can sustain those level.
How aggressive can you
go?
Before I explain about the
Aggressive setting, please take a look the chart below:
(Risk Setting=10, Aggressive set to FALSE)
There is 2 period which
FractalWizard needs 4 months (2006/02/25 -05/24) and 5.5 months (2006/06/23 -12/08) to recover
the drawdown and gain new equity
watermark.
Now with Aggressive setting
set to TRUE and Multiply set to 0.3, the result:
Now the drawdown period
takes around 3 months (2006/02/01-05/17), before achieving new equity watermark.
ROI = 549,606
(2198%) , Drawdown level up to 23.92%.
Click here for complete back testing result
for Risk_Setting=10, Aggressive=TRUE and
Multiply=0.3.
I change the Multiply
to 0.5, now the drawdown period takes around 2
months,
ROI = 601,234
(2404%) with drawdown level=25.24%. Fantastic huh!
What is Multiply does ?
The multiply setting work
like this:
For every 10% drawdown in
your account, the EA will increase the lot size at your
trading account.
The calculation is:
Lot Size =
Lot Size * (1 + n * Multiply)
n = 1 if your
drawdown = 10%
n = 3 if your drawdown = 20%
n = 5 if your drawdown = 30%
n = 7 if your drawdown = 40%
Why you increase Lot
Size when there is drawdown ?
For every good EA, there
always good market condition and there is bad market
condition.
This condition apply to
FractalWizard EA too, no matter how good the market
condition for the EA today, someday there will be bad
market come.
With FractalWizard EA, the
aggressive trading assume that after BAD condition
market, there always GOOD market condition waiting. The
aggressive trading assume after 10% or 20% drawdown;
it's time to increase the lot size in order to speed up
the process to recover the drawdown.
For those who like
Aggressive Trading (I prefer 0.2 level):
I suggest the maximum Multiply is 0.3, and use it
carefully if you do not want to blow up your
account.
For those who prefer
conservative trading; or those who do not like principle
adding bigger lot size in drawdown period, I suggest the Aggressive
setting set to FALSE (OFF).
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