So, Which settings should I use?
The best settings you can use are those you have found for yourself using your EA Testing and optimisation skills. You will own those setting and take full responsibility for them. The alternative is to look at what worked best in the past. The EA input picture below shows the settings of the best results achieved in testing - those are always a good guide.
When doing our testing we did a full optimization test for each of the 4 entry techniques using the 15 minute timeframe:
The results were
0 The RSI entry $ 3409 down to $ 2999 after 10 results
1 The RSI and the envelope entry $ 694
2 The RSI Hook entry $ 2244 down to $ 951 after 10 results
3 The RSI Hook and the envelope entry $ 1 055
The most profitable entry method was clearly the RSI only method for this currency.
This meant that we could ignore the Envelope settings and focus on the optimizing the RSI and and exit methods for our main setting options
Testing results have shown that:-
- The entry method of 0 (RSI OB/OS) has produced the best results for this currency
- The entry bias should be keep at 0 for long term trading
- Because the best entry strategy is the one only using the RSI OB/OS strategy there is no need to worry about the envelope period and envelope deviation.
- The only inputs of importance is the RSI OB/OS and RSI Period and the exit strategy.
From a trading risk point of view the trader should then consider results that:-
- Give low draw-downs
- Give low transaction counts ( high transaction counts are riskier)
Below are the results obtained:-
It is vitally important to use a Forex account that caters for MICRO lot sizing so that the DIAD system can calculate lots as accurately as possible. You account must be capable of opening transactions with a size of 0.01 lots.
Best result statistics
Please note that the 1 setting on the RSI is a high income but high risk setting. Consider using an alternative setting after watching the setting video. Demo Trade before use.
The Best result settings
PLEASE NOTE THAT THE SETTINGS ARE BASED ON THE 15 MINUTE TIMEFRAME
Results sorted by best results per exit method
The table below shows the best results of exit method used. Exit method 10 is by far the best historic method
Results sorted by largest gains
Please note that the 1 setting on the RSI is a high income but high risk setting. Consider using an alternative setting after watching the setting video. Demo trade before use.
Results sorted by Expected Payoff
Payoff refers to the ratio your gains are to the drawdowns experienced. You want high gains with a small drawdown. this table sort the results of the highest payoffs.
The profit factor is almost identical to this table so the profit factor table is not presented
Results sorted by smallest drawdown
If you are most concerned about exposure to draw-downs below are the 10 results with the lowest draw-downs.
Results sorted by largest drawdown
If you are most concerned about exposure to draw-downs below are the 10 results with the Highest draw-downs. They should be avoided
There is a difference between your account size and the AccountAllocation input into the EA. The account size is your actual account balance which can vary from time to time. The amount in the AccountAllocation is the amount of your account that you are going to allocate to HAPPY Envelope trading.
So when starting to trade the Happy Envelope EA for the first time we suggest that you follow the process:
- Demo trade a number of settings in a demo account for 2 weeks to see how your particular broker processes react to the EA. Allocate no more than 10% of your Demo account to the Happy Envelope EA.
- Then when moving to a live account allocate 10% to 20% of your account to the Happy Envelope EA. Over time increase these amounts based on the results you achieve.
Questions and Comments