Now broadcasting on Collective2

Monte Carlo Forex Statistical Arbitrage is now available on Collective2. You can now have this unique system autotrade on your account. You can even trade on a demo account absolutely free if you want to test the waters first without risking any real money.

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4 Responses to Now broadcasting on Collective2

  1. Moody says:

    Hello,

    I am interested in demo testing your EA and i registered at collective, but i am not familiar with this platform. If i understand it right, i just download collective EA and attach it to metatrader and i will get signals from your EA? Thanks in advance.

    • gatornuke says:

      There is no EA to download. All you need to do is to click on the text below the “Subscribe” button that says “Or… Want to try AutoTrading without risking real money? Trade this with $100,000 simulated dollars, for free.” and C2 will create a “Simulated Brokerage Account.” This Simulated account lives entirely within the C2 website, and is intended to get you familiarized with C2’s controls, scaling factor, overrides, etc.

      If and when you’re ready to try this in a live account, you would then sign up with one of the brokers listed here during the auto-trade setup process. The signals would be sent directly from C2 to the broker, you don’t have to have any software running on your machine. You can still modify trades, scaling factor, and all the other switches you became familiar with during the demo through the C2 site. The cost to you is the system subscription fee plus $1/minilot, which means [broker spread] + 1 pip and is how C2 is compensated.

      • Moody says:

        Thank you for reply.

        It means, that i dont need super fast vps and reliable broker to get your myfxbook results? I am kind of conservative trader, who was teached, that trading on timeframe smaller than 1H is not long term profitable because of broker depedency and all the noise. But in college i did some monte carlo analysis for my school work so i am very interested in this system.

        Maybe it would help to sell your signals, if you posted results from real account, not just demo and clarify minimum capital requiered and risk exposure of your system. Also is it possible to monitor demo trades or even real trades if customer subscribe your signal on his own myfxbook account?

        I am considering adding this system to my portfolio if it proves to be long term profitable and easy to monitor and analysis.

        Thanks again.

      • gatornuke says:

        Moody,

        That’s right, you don’t even need to have MT4 installed on your machine. Although the results might not be exactly like those in myfxbook. This test account casts a wider net on the forex market, and is what I use to identify pairs and settings that appear to perform well for this system. Once I identify these pairs I deploy them in my mcfx.collective2.com account, and at entry triggers that may be more restrictive than those in the test account. There is usually at least a week’s lag time between when a new pair starts to do well in the test account and when it gets deployed in C2.

        If you go to mcfx.collective2.com, you’ll see that I have a section towards the bottom that discusses risk management settings for this account. This system is really meant to be used with an account >$100,000; although right now I’m only broadcasting two pairs on the C2 account (AUDUSD and GBPUSD), and there is only a maximum of 30 positions per pair that I’m allowing. As such, you could trade with an account as low as $10,000 at a leverage of 200:1, for instance, although you would have to set your risk between 6% and 23% of account balance. This is because for an SL of 100 pips, you would want to risk no more than 6%/60 of your account balance, or 0.1%, which is $10. That means that your minimum position is 0.01 lots, which is the least some brokers allow. On the other hand, if you were to bet 23% of your account balance at any one time, your used margin would decrease to $7,667, and the equity would drop to $7,700 before hitting the SL. Bet any more than this and you’d hit a margin call before the stop. Of course, lower leverage would mean a lower maximum betting amount. Nonetheless, 23% risk is just foolish, and I would never recommend anyone do this. Even 6% is rather high.

        You should also keep in mind that I don’t intend on trading only 2 instruments forever. I plan to add more as more profitable pairs are found. in addition, I also plan to gradually increase the maximum simultaneous position size to more than 30 per pair. I could wind up with as many as 6 instruments and 240 positions per pair, for instance, just like the test account. This would certainly require a much larger account so as to maintain a reasonable risk level at a minimum position of 0.01 lots. This is why I plan to launch a managed account if successful performance continues in order to have sufficient funds to deploy this strategy effectively.

        I should mention that I did attempt to implement the system on a small account ($5,000) with single positions and it has been rather disastrous. You can see this at mcfx-sp.collective2.com. I don’t think you can effectively deploy statistical arbitrage under these conditions, but i figured I’d try anyhow.

        I also wanted to address your concern about trading on the 1 minute scale rather than more conventional scales, such as the 1-hr scale. While conventional methods like trend following do work better on larger timescales, my system needs a lot of data to assemble the sampling functions. Using the 1-minute scale gives me millions of data points to work with, while the 1hr scale only gives me thousands, not nearly enough for MC sampling. In addition, while there is a lot of noise in the 1 minute scale, this system trades inside of that noise. By spreading its positions within a probability cloud inside the noise, it’s expected to capitalize on positive or negative biases within the noise. In addition, trading in such a short timeframe allows me to avoid having positions open during periods of high uncertainty such as news events, when historical price movement data has little significance. Lastly, because any one entry group is not expected to have a large impact on the account, it would be difficult to produce a return trading on larger timescales that beats the benchmark. The key is to have a rapid succession of small trades that in the aggregate produce a net gain for the account.

        Please let me know if you have any further questions.

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