Q. Re this software, can I run it on Demo MT4 and trade the signals with another broker who uses another platform?
A.That could work, i actually do a similiar thing, but then you dont really need the EA, you need just the indicator. It would not really practical to trade exactly as the EA does in a manual fashion.
Q. I've been running your EA on demo for 2
weeks now and it is up about 1020 pips. Not bad at all. However, I
did have a 550 pip drawdown before it started heading back up again.
So, do you wait to begin the EA until after the gbpjpy has had a pull
back? I'd rather not endure a 1700 pip drop like one that happened
from 2/23/07 through 3/5/07. Do you have some way of knowing when to
turn off the EA to avoid drops like that? Is there any indicator or
something else that you use to signal that to you?
A.Hi, yes that is a really good question. Im not sure which version you are on,
but the latest version comes with an indicator that you can run on a 4H or daily
chart to determine where the good points are to enter again. Really now would
not be the best time to start a new grid, you should really wait for the next
crash to happen.
Q. Since GBPJPY is at a 15 year high right now and a correction might be in store soon and since CG4 only
works on uptrends and since I'll be going with live money next week- should I wait till it corrects
itself to the 215-220 range before starting so I could ride it all the way back up again?
A. This is a very good idea if you have the patience, and i would generally recommend starting the grid
initially after a major correction. The reason i say, IF you have the patience, is the correction may be
days or weeks or months away, and there may be many pips to be made between now and then. But of course
no one wants to get in just before a 2000 pip drop. I would (an am on my live account, so this is not
hypothetical) spread my risk between several pairs, looking especially at undervalued pairs, and keeping the
lot size small. If your patience can hold out then the best way is to demo it until said correction
occurs, then leap in with both feet.
Q. The faq mentioned of not recommending starting the grid now due to
talk of carrytrade unwinding. would you suggest doing some basket
trades or completely wait till the unwind is done?
A. Theres been talk of that for several months, to be honest, and if you take a look at the monthly chart,
there could be a long way to go yet. If you can wait for a correction, then do. Basically you can use the fib levels
as a guide, and keep an eye on the blog i usually post on there when i see a good 'in'.
but yes, using a basket is always a good idea, i trade 5 pairs with the grid currently. There are always opportunities. It is better to wait if you have the patience, and to trade smaller when the markets are overheated.
