Welcome, Guest. Please login or register.

April 07, 2020, 01:56:15 AM

Login with username, password and session length

Shoutbox

Recent

Members
  • Total Members: 72
  • Latest: zoom48
Stats
  • Total Posts: 704
  • Total Topics: 63
  • Online Today: 18
  • Online Ever: 144
  • (August 14, 2019, 12:20:12 PM)
Users Online
Users: 0
Guests: 13
Total: 13

13 Guests, 0 Users

Author Topic: SFE Stock Market  (Read 1413 times)

Attractor

  • Administrator
  • Sr. Member
  • *****
  • Posts: 287
    • View Profile
    • SmartForexExpert
Re: SFE Stock Market
« Reply #15 on: March 19, 2020, 08:51:43 PM »
Darwinex US stocks selection

Find the backtest on the first message



Index Symbol Name:    WS30

Symbol_List1:  ABT;AEP;AMT;ALL;BA;APD;AZO;BMY;BDX;BSX;CCI;CNC;CRM;D;DIS;DG;DHR;EL;EW;HCA;HUM;ITW

Symbol_List2:  HD;HON;ICE;JNJ;JPM;MMC;LOW;KO;LLY;LMT;MA;MCD;MMM;SYK;SYY;NEE;NKE;NOC;PLD;RTN;SHW;SPGI

Symbol_List3:  SRE;STZ;TMO;TJX;TRV;TSN;UNH;UNP;V;WM;ZTS;AAPL;ADBE;ADI;ADP;AMAT;AMGN;AMZN;ATVI;AVGO

Symbol_List4:  ADSK;CHTR;CMCSA;CME;COST;CSX;EQIX;FB;FOXA;GILD;GOOG;IAC;INTU;ISRG;KLAC;LRCX;MAR;MDLZ

Symbol_List5:  MSFT;NFLX;NVDA;PEP;PYPL;ORLY;ROST;SBUX;TTWO;ULTA;TSLA;TXN;VRTX

Attractor

  • Administrator
  • Sr. Member
  • *****
  • Posts: 287
    • View Profile
    • SmartForexExpert
Re: SFE Stock Market
« Reply #16 on: March 21, 2020, 02:33:47 PM »
Some questions I have received:

"So for this ea would it still be ok to combine with other eas like in your signal evolution? But you need at least 10000 usd account size for this ea alone ? If this only trade us stock indices is this symbol us500? Which i know only trade minimum 1 lot"

"Not sure what ko.nys is i cant seem to find this on icmarkets"

"None of the symbols i recognise"


- The EA uses the stock indice symbol, for example US30, only for consult the 'look' of the market and disable to open new trades when the market is in a strong correction like the current. But never open trades on the indice.

- Not all the brokers have Stock Market CFD. At this moment, I have tested and I have configurations for ICMarkets and Darwinex. I will post the config files later.
In Darwinex, the stocks are accesible both in mt4 and mt5.
But in general, in brokers that offers stock cfds, they can be traded only in the mt5 platform.
In ICMarket, US and AUS stocks can be traded in his mt5 account, but you have to ask to their support to enable the stock cfds and your account after has been opened. By default, you will not see the stock cfds.  KO.nyse for example is a the cfd of Cocacola in ICMarkets.

- you don't need 10.000 USD only for this EA, this will depend of the broker (the leverage of the stocks in the broker) and you can also can govern this with the number of trades you allow to open and the risk of each trade.

In ICMarkets, with a 10.000 USD account (MT5 account), you can use all the SFE Forex EAs and SFE Stock EA if necessary, is enough balance for all at the same time.

But I will explain a bit better how works the risk and how to understand the needed balance in the next message within today.

Attractor

  • Administrator
  • Sr. Member
  • *****
  • Posts: 287
    • View Profile
    • SmartForexExpert
Re: SFE Stock Market
« Reply #17 on: March 23, 2020, 08:05:01 PM »
Which is the risk of the EA?
The risk is governed by the next three parameters:

[OLD version 1.0]
Max. Number of Positions =  (for example 8  )
Percentage / Position = ( for example 40)
Max. Percentage / Position = (for example 50)

At this moment, there isn't a %risk / trade like we are implementing in the forex EAs, maybe in the next versions.

Now, the risk is based in the % of balance assigned to each position and the max. number of orders.
Then, based in the values of the example above, in this situation, the max. balance in game if all the positions has been opened is a value between:
8 x 40% and 8 x 50%, this is, a value between 320% and 400%.

In most part of the brokers that offers cfds, the required guarantee for hold the position is between 5% and 20%. This is, between 1:20 and 1:5 leverage.

If we go to the lowest leverage, 1:5, this means I can use up to 500% of the balance, for these reason, the operation [num.trades]*[max percentage/position] hast to be under this 500%.

If the leverage is 1:5 and we have 8 position opened, the free margin is low already, but if the broker is 1:20, there is still a lot of margin for use with other EAs.

* why there is 2 values? Percentage / Position and Max. Percentage / Position.

This is because each stock CFD has a minimal size of share to open the position, then, for low balances, sometimes the assigned balance is not enought for open the position. If is not enough, the EA will consult the Max. Percentage parameter, and in some cases this will be enough to open the position because we have more balance assigned. Is like a tolerance to the balance assigned in the case is not enough in the default balance.

In the next version I will implement a parameter for measure the % of risk if all the opened positions hits the SL and establish a limit or raise an alert. At this moment, the most reliable for evaluate the global risk is the backtest itself.

[New version 1.1]

Max. Number of Positions =  (for example 8  )
Percentage risk/trade. Risk assumed in each position (for example 2)
Max. Percentage / Position = (for example 50)

now the size of the position is related to the risk assumed in each position (Percentage risk/trade). The same mode added to the Forex EAs recently.

Then, at any moment, the max. risk is (max. num positons  x % risk /trade). Although we know we can have gaps in the stock market.

In some cases, the size of the position will be reduced, if the value of the parameter 'Max. Balance Percentage / Position' is overpassed.

Then, 8 trades and max 50% of the balance / trade, means that the max. balance used in any moment is 8 x 50% = 400%.
« Last Edit: March 25, 2020, 02:48:11 PM by Attractor »

Attractor

  • Administrator
  • Sr. Member
  • *****
  • Posts: 287
    • View Profile
    • SmartForexExpert
Re: SFE Stock Market
« Reply #18 on: March 23, 2020, 08:05:47 PM »
Which are the stocks and the index involved in the EA?

Anyone can propose a list of stocks involved and refer them to his indice. For the moment my proposals are based on the US stocks of ICMarkets and Darwinex.

How I select the stocks? Right now, I'm not selecting the stocks based on which has produced good results in the backtest. The stocks are selected based on his long term trend. I open every symbol, I see the long term trend, and any stocks that have a good looking or average looking uptrend, I select the symbol.

In future version I want to make a script to scan this kind of symbols automatically.

Attractor

  • Administrator
  • Sr. Member
  • *****
  • Posts: 287
    • View Profile
    • SmartForexExpert
Re: SFE Stock Market
« Reply #19 on: March 24, 2020, 12:05:58 AM »
For stocks, would you suggest it is better to spread the risk throughout a higher max positions? Such as 16 instead of 8? Or would a lower max positions pick ‘higher quality’ trades / setups ?

-> Or would a lower max positions pick ‘higher quality’ trades / setups ?   

No, less number of max positions don't mean higher quality, and is not the recommended, because the diversification is low, and the performance is very related with the more or less lucky of this low  numer of setups.

At this moment, I like to have 8 trades in the icmarkets list, and 16 in the darwinex list. This is because the list of darwinex is more large.
The concept is this:
- you want to have a max. number of positions enough to diversify the trading, but without elect a high number of positions, I mean a number close to the number of stocks on the list, because if you do this, will happen very few times that all the positions will be used at the same time, and all the other time, you will trade below the desired total risk.

The image represent this. The red line, the number of trades is to high in relation to the symbols selected, then the desired risk fills very few times.
In this case, the green number of trades is better, the max number of positons will be reached more frequently, then your target risk is more balanced along the time.



At same time, a low number of positions is not a good idea, not only for low diversification, also because in general all the time the risk will be the max. and this don't represent well the natural flow of the EA with the market, the EA tends to open more positions when is a good moment, then, cut this flow and have always the max. positions opened, is not the best.
« Last Edit: March 24, 2020, 12:09:00 AM by Attractor »