Wednesday, 10 October 2007
CG4 vs CGv5
Q.
I am Running now both EA on a testaccount. The CGv4 is nunning better now...But it is more risky did I understand that right? The v5 takes profit much time before the v4 right? I that the only difference? And what are the detailed settings for take profit on v5 and v4?
A.
The CGv4 is more risky, with a correspondingly higher reward, as it does not have a trailing stop feature. v5 will do better in ranging/bearish markets (smaller drawdown, profit during ranging periods), but not collect huge profits during a run up (as during retracements positions will be closed out). v5 can be made to run more like v4, by modifying the trailing stop value, or turning it off altogether. this will give your trades more room to breathe.
v4 will close out trades when the TREND changesv5 will closeout trades when either the trend changes, or we are in profit enough to have activated the trailing stop, so the trade will be stopped out (in profit)
If you look at the online statement you will see the equity curve with v5 is quite linear.
A potential change for the future is to modify this trailing stop value to reflect the current market conditions, so during ranging periods it would tighten, during trending periods up widen, and during trending periods down, possibly tighten again.
Labels: CarryGrid EA, Carrygridv5, Closing trades, v4, v5
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