Tuesday, 18 December 2007
EA on 5 min chart
Question
Can this ea be ran on different chart times with the same risk factor.
If you ran it on a 5m chart with the same 5000 pip down draw allowed and diversified between different currency pairs would it still be safe to trade.
Answer
It has performed better over longer chart timeframes, mainly because trades have been allowed to play out, but a shorter time frame reduces risk as it is more sensitive to changes in short term trends. 5 minute chart timeframe is very short and the trend will be all over the palce. I would recommend 1HR timeframe at least. There are various hedging models you can use to offset risk in one pair with another pair, but i dont have an 'optimal' set of pairs to run it on.
Can this ea be ran on different chart times with the same risk factor.
If you ran it on a 5m chart with the same 5000 pip down draw allowed and diversified between different currency pairs would it still be safe to trade.
Answer
It has performed better over longer chart timeframes, mainly because trades have been allowed to play out, but a shorter time frame reduces risk as it is more sensitive to changes in short term trends. 5 minute chart timeframe is very short and the trend will be all over the palce. I would recommend 1HR timeframe at least. There are various hedging models you can use to offset risk in one pair with another pair, but i dont have an 'optimal' set of pairs to run it on.
Labels: 5 minute chart, CarryGrid EA
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