My personnal vision of trading – and the Elite Series – My Trading – 15 January 2022

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My personnal vision of trading – and the Elite Series – My Trading – 15 January 2022


Hello traders and welcome to the Elite Series!

In this post, I’ll tell you a bit more about me and my vision of trading and, as well, about the Elite Series.

1. Introduction

I started trading while I was at school, I remember having downloaded a demo and, during classes, I was trying to understand the graphs. That was about 12 years ago.

At that time, that wasn’t really serious and I just wanted to play around, however, I demoed for almost a year. Then I stopped looking at the graph, found a first job and forgot about it for almost 5 years, til 2015.

I saw, like many other newbies, traders on YouTube showing very good results and making an incredible living out of it. As soon as I saw this, and with a bit of money on the side, I jumped right back in! I first try to learn some strategies, I heard about some of them, tested them, at that time I was trading indices (CFDs) on ProRealTime. I had my own business and had a lot of free time, so I used to pass all days in front of my computer.

On demo I crashed down so many accounts till being breakeven and having my first ‘”green” month, I just passed all my days reading and learning. These are the classical steps before going with any real money. I made my first deposit, and as you can expect, I totally blew up the account (€1,500). I didn’t panic, it was normal, I kept in mind that one of the traders I admire the most went from 50K€ to 30K€ in one day before knowing his first success, so it was naturally part of the learning process. I created a business a few years ago and invested some money into it, I saw it as a business. I was trying to learn scalping on a tick chart, that was a huge mistake! I tried to stick to it for a while and lost at the end some money. I then took a break for a few months and learnt exclusively forex trading. It was a totally different trading style: less aggressive and which needs a lot of patience, I really liked that way of trading. I went back to demo and learnt different swing strategies. I learned them until I had good results on the demo and switched to a real account with minimal lots. I felt much more comfortable with that style of trading.

Yet, this learning process took me a while, almost 2 years. I switched from ProRealTime to MT4 pretty quickly, and at that time, I was modifying free indicators to make my own ones (I had some knowledges in C that helped me a lot to understand the Mql language). I wasn’t very profitable, barely getting a profit factor over 1.2, I knew some winning periods, losing ones, still part of the learning process. I tried to question myself a lot, and really believed if I wasn’t that much profitable, that was only me, not the market, nor the strategies. At that time, I really concentrated on the profit factor, this was (and still is) one of the most important indicators proving the performance of a strategy. When I look back, I realize that this story is pretty much the same than most of the traders out there.

During that time, I also tried a lot of EAs, and honestly except a very few of them, the most were at some point just losing money and slowly but surely emptying my account. One day I invested a huge amount (for me) in one of them which turned out to be a huge scam, thousands of Euros thrown out the window, I was disgusted. We learned a little later that this seller used to rig these backtests, he used to hardcode BT to only show profitable trades.

For that reason, I wanted to automate on my own and decided to only trust a very, very few number of sellers. I wanted to use the strategies I had, but improve them in some ways. I had very simple strategies, but also found out that there are so many ways to trade, and many strategies are at the end very profitable if you master them. This is at that moment that I discovered genetic algorithms, and this has marked a turning point in my life!

2. Genetic Algotrithms

“Genetic Algorithms(GAs) are adaptive heuristic search algorithms that belong to the larger part of evolutionary algorithms. Genetic algorithms are based on the ideas of natural selection and genetics. These are intelligent exploitation of random search provided with historical data to direct the search into the region of better performance in solution space. They are commonly used to generate high-quality solutions for optimization problems and search problems.

Genetic algorithms simulate the process of natural selection which means those species who can adapt to changes in their environment are able to survive and reproduce and go to next generation. In simple words, they simulate “survival of the fittest” among individual of consecutive generation for solving a problem. Each generation consist of a population of individuals and each individual represents a point in search space and possible solution. Each individual is represented as a string of character/integer/float/bits. This string is analogous to the Chromosome.” Geeksforgeeks.

It was natural for me. Genetic algorithms were THE SOLUTION! These algorithms are, in their nature, made to solve complex problems in which an infinity of combinations is possible, while improving the results in the creation of new generations. I started to understand them, learned how to work with, learned how to use them and put them into practice. In fact, it was a real obstacle course!

I started something totally new, which I still had difficulty to understand, but with perseverance and many, many hours, days and weeks of reading, learning, trying and progressing, I was able after several months to get something out of it: my first arrow indicator! I straight away coded it into an EA to check the results.

Of course, at the beginning, it wasn’t that much, the results were more or less random, but for me and at that time, that was a victory! Results weren’t the best, but I managed to make it, so I needed to learn again and improve it, I naturally resumed my research.

After many weeks of hard work, I was able to make several other indicators and EAs. I learned al lot and I was able to progress quickly. I got some good results, and I learned to use my own methods of creation, including always using non-algorithm learning periods, so I can see how the algorithm is doing during these out of sample periods.

I generated hundreds of EAs, put them all on demo accounts, and learned to recognize in advance the strategies that have a possibility of giving good results based on many data. So at this point I have a small idea of what to test and what to remove. A few months later, I had already generated millions of different strategies, tested some of them that gave very good results in demo, and then I switched the best ones to real account.

I had good results on my real account weeks after weeks, that was a huge victory, I used all these strategies separately and was constantly monitoring each of them. I also learned that some of these strategies could give very good results for only a few months before not being able to adapt to market changes and need to be calibrated on a regular basis. 

3. Elite Series

After experiencing ups and downs, I was able to recognize the right strategies, apply them and in the end, be profitable like I never did by trading manually (yeah, that wasn’t that hard too).

With patience I was able to slowly increase my capital and for sure, there are some bad weeks and losing periods, but overall, I am very happy with the results.

I decided to share some of them to a couple of friends. I first gave those EAs to a few people around me and got some good feedbacks.

After these feedbacks, I decided to select the best strategies I had, code them into evolving EAs and share them on this market. Each of the EAs is built with strategies that I‘ve tested and these EAs will be improved, strategies will be removed, others added, they will be in constant evolution, adapting to the current and future market.

This series represents my personal vision of trading: a multitude of different strategies, to expect a stable return while having a very strict control of the risks. Personally, I can tolerate a drawdown of up to 25/30% of my capital, this threshold is my limit and I think you should know yours when using any EA on your account.

Each of the EAs has been created with a mix of strategies: some are very aggressive and others much more conservatives, all in a balanced way. Some strategies will be paused during certain periods when the market is ranging for example.

I want to finish this article by telling you that those EAs are not entirely about money (and at the price they are, you can see that – although that’s a plus I don’t hide it from you either), but rather a deep passion in developing, learning, improving and finally creating something that is beyond me as a person.

That’s also why I published one of them totally free and invite you to try it for a few weeks on a demo account or with minimal risks. I’m also working on other pairs and would be definitely open to work on any asset you may be interested in (for that please do not hesitate to drop me a message).

I would like to thank all those who have read these few lines (and those who didn’t want to go to the end), and sincerely hope that these EAs can be of any help to you.

Elite



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