How much does Major Events impacts on your Proorder Systems?

• 07/02/2020 at 7:03 PM #138143
  Francesco

  I was running a multi-position daily system on EURUSD that was performing very good since 20 days. Today, in correspondence with NFP (a major news event) it performed disastrously.

  I would like to know how your systems reacted to this event to understand if it’s fault of my system or not, and also how do they react to major events in general.
  If it’s a common “problem” how do you react to major events? You turn off systems when you know that it’s gonna be a “strange” day?

  

  Francesco

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  07/02/2020 at 7:36 PM #138144
  Mauro T. “Algorithm System”

  Hi Francesco, personally I think it makes no sense to block a trading system before an event ….. when you optimize the system you don’t know what events have been in the past and how they behaved ….. The stops are part of of the “COSTS” of this job …… so you can use the trading systems as market access signals and manually manage the operations ….. there are those who do it …. Then keep in mind that Forex is difficult to create a reliable system over time ….

  

  Mauro T. “Algorithm System”

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  07/02/2020 at 7:59 PM #138147
  Francesco

  I think it especially depends of the structure of the system (type and quantity of trades).
  Moreover I remember people adding to their systems a function to avoid nfp days, so I guess it’s a “common” problem.

  

  Francesco

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  07/02/2020 at 7:59 PM #138148
  GraHal

  If a System is in profit then why not exit manually before a News event?

  Alternatively, sit with your finger on the trigger as the News comes out and if price goes the wrong way in the first few seconds then exit / close the System? 🙂

  Re-enter manually after the dust settles if confident enough?

  It will only cost you the spread / a few points … better than a drop of hundred or more points?

  

  GraHal

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  07/02/2020 at 8:05 PM #138151
  GraHal

  You could also add a code snippet that exits of there is a drop of > x points and run it on a 1 second timeframe so a MTF System.

  I have the above Drop Exit on a few of my Systems.

  There can be large drops / rises at times other than News events.

  

  GraHal

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  07/02/2020 at 8:22 PM #138156
  GraHal

  Optimise System on normal TF (5 mins, 1 Hour etc) and then, when happy. add the Drop Exit snippet on a 1 second MTF.

  Problem is … there will not be much data to determine if it increases profit.

  So … choose a data period with several big drops / rises (plenty during Covids) and run the System including the Drop Exit and judge … I’m glad I got out on that one!? 🙂

  Then run without the Drop Exit … compare results?

  Above method is due to 1 sec TF over 100000 bars is only about 1 week worth of data.

  If anybody does above … report back how you get on please?

  

  GraHal

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  07/02/2020 at 8:43 PM #138162
  Mauro T. “Algorithm System”

  ByJust like I said above … you enter with a signal from the trading system and then you manage it as a trader …. or you do it with a one-second management ….. I now have stopped the trader I manage everything from the trading system ….. and I go to the sea … 🙂🙂

  

  Mauro T. “Algorithm System”

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  07/02/2020 at 9:18 PM #138171
  GraHal

  Mauro wrote:

  I manage everything from the trading system ….. and I go to the sea

  What so your code caters for the drops / rises due to News etc?

  And you’ve made that much money … you bought a yacht like Vonasi??

  Apologies couldn’t resist the joke … need a laugh due to Covid lockdown!! 🙂 

  

  GraHal

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  07/02/2020 at 9:48 PM #138178
  Mauro T. “Algorithm System”

  Maybe …. 😄😄 … no but I see the sea from home and I can’t resist taking a bath ….. but then I spent many years in front of the computer …. better a swim in the sea … 🏊

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  GraHal

  

  Mauro T. “Algorithm System”

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  07/03/2020 at 11:44 AM #138259
  zilliq

  That’s why you need to optimize your variable on very long time >100 000 units if possible, short time / day in market, use stop determined on past data and so on…

  Have a nice day

  

  zilliq

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