Forex strategies to pass the FTMO Challenge.
Ethereum Averaging (run #2)
Overview
Ethereum Averaging has been a high performer. This was live tested on a real money account and reached 73% ROI in around 113 days. 15%/month.
Trading result
| 26 days | Passed 10% profit target |
| 3.0% | Max daily drawdown |
| 3.0% | Max Total drawdown |
| $15.00 | Average win |
| $10.00 | Average loss |
| 7.50 | Profit factor |
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The Concept
At the trade open, 1 market trade is opened, and 14 limit stop orders. These can be set to spread over the full depth of the market, or compacted over a lesser range to be more aggressive. This means you can absorb a huge crash of 80% for example and still be active.
If the market moves up, the strategy takes small profits like 1.0%. If the market moves down, it triggers the pending orders. You'll see here the market, after dipping, often doesn't need to come up as high as the starting price. So you've made a profit even though the market has actually gone down which is cool.
The strategy can be in profit in a ranging sideways market. The market could be ranging for a year and you'd be making money. The efficiency is less than an upward market, but still passive income.
The strategy can be in profit even with a non-severe downtrend. If the market is trending down, there'll still be profits made. It's much less profitable than when the market is moving sideways or up however. If the market fall sharply, it will drawdown negative, but some wins along the way will mitigate huge drawdown. For example if the market drops 50%, your account might just be down 30%.
The best condition is of course an uptrend! Many small trades will be won on the way up. The efficiency will less than HODL in a strong uptrend, but these pumps are often just short-lived. This strategy is a champion at handling all market conditions.
Buy condition
Buy only trades. Market price buy order plus set 14x buy limit orders at 3%,7%,12%,18%,25%,32%,39%,46%,53%,60%,67%,74%,81%,88%. These 15 orders form a trade set.
Sell condition
No sells (if sentiment is up)
Money management
Everything based on closed candles. Collective Take Profit: When the total account profit of all trades reaches or exceeds a collective profit (1.0% x Account balance x number of open positions), then close all trades. Set individual take profit targets of 15% of price range. e.g $3,300 x 15%.
Proven Assets
ETHUSD
Backtest (optimize parameters)
2021-01-01 to 2021-03-01 (2 months)
Forward test - short term (try parameters)
2021-03-01 to 2021-05-01 (2 months)
Back test - long term (try parameters)
2018-03-01 to 2021-03-01 (3 years)
