FX Trading Diary R Factor - New Trading Diary

whisquer

Eternal Forex Legend
Hi y'all,

I know that I was meant to be updating this diary more regularly, but in between : (a) work - my boss must really like me, adding projects onto my plate while I struggle to hire an additional pair of hands :); (b) performance of R Factor's Mean Reversion strategy - oooh it has been NASTY; (c) the slew of set files and updates to the EA that I haven't been able to keep pace with, and (d) my focus on other projects; I've neglected the updates for a bit.

But it's no secret that R Factor Mean Reversion has been struggling. You don't even need updates from me. Just check out the Dev's web page at: https://www.myfxbook.com/members/johnmacknamara/r-factor-portfolio-mean-reversal/8016551
This was the strategy that I've been writing all along on. And yes I suffered losses, probably worse than documented on his myfxbook page. Why? Because the brokers I used tend to send their deals straight through to Liquidity Providers, as opposed to internally warehousing their trades and netting off traders against each other. Result: at rollover times, you may experience part-fills, seconds may go by without ticks being offered by the LPs, and fewer LP dare take the risk of being the one left 'holding the baby' should the trade go bad. Remember, with my kind of brokers (maybe not yours), the position taken by the broker is directionally the same as the one you took as well.

The upshot and net result of this is that I may experience worse slippage (because... no LP is offering a decent price, with a decent spread, at that material time right around rollover). And when the trade does close, the price action or price offered may have severely turned against you. So yes, I had to spend time in conversations with the brokers etc. and to lick my wounds. You know those difficult conversations, why did this happen, why not with this other broker, etc etc.

I don't want this to turn into a gripe-fest, other than to advise that the saying is true; rollover strategy might be OK so long as your broker has a wide user base with lots of trades that are internalized by the broker. But for the broker that sends each trade straight to LP; rollover may NOT be ok since there may be limtied LPs on their panel, or LPs are not willing to offer decent pricing, or spreads are so high that the brokers filter out these prices anyway.

But enough of that, I want you to consider what convering R Factor Mean Reversion strategy, to R Factor H4 Breakout Strategy, has done for me in the meantime, since 1st June 2021:
1695

For me, this is as good as it gets, in this difficult period.
 

Balls

Forex Intern
Hi y'all,

I know that I was meant to be updating this diary more regularly, but in between : (a) work - my boss must really like me, adding projects onto my plate while I struggle to hire an additional pair of hands :); (b) performance of R Factor's Mean Reversion strategy - oooh it has been NASTY; (c) the slew of set files and updates to the EA that I haven't been able to keep pace with, and (d) my focus on other projects; I've neglected the updates for a bit.

But it's no secret that R Factor Mean Reversion has been struggling. You don't even need updates from me. Just check out the Dev's web page at: https://www.myfxbook.com/members/johnmacknamara/r-factor-portfolio-mean-reversal/8016551
This was the strategy that I've been writing all along on. And yes I suffered losses, probably worse than documented on his myfxbook page. Why? Because the brokers I used tend to send their deals straight through to Liquidity Providers, as opposed to internally warehousing their trades and netting off traders against each other. Result: at rollover times, you may experience part-fills, seconds may go by without ticks being offered by the LPs, and fewer LP dare take the risk of being the one left 'holding the baby' should the trade go bad. Remember, with my kind of brokers (maybe not yours), the position taken by the broker is directionally the same as the one you took as well.

The upshot and net result of this is that I may experience worse slippage (because... no LP is offering a decent price, with a decent spread, at that material time right around rollover). And when the trade does close, the price action or price offered may have severely turned against you. So yes, I had to spend time in conversations with the brokers etc. and to lick my wounds. You know those difficult conversations, why did this happen, why not with this other broker, etc etc.

I don't want this to turn into a gripe-fest, other than to advise that the saying is true; rollover strategy might be OK so long as your broker has a wide user base with lots of trades that are internalized by the broker. But for the broker that sends each trade straight to LP; rollover may NOT be ok since there may be limtied LPs on their panel, or LPs are not willing to offer decent pricing, or spreads are so high that the brokers filter out these prices anyway.

But enough of that, I want you to consider what convering R Factor Mean Reversion strategy, to R Factor H4 Breakout Strategy, has done for me in the meantime, since 1st June 2021:
View attachment 1695

For me, this is as good as it gets, in this difficult period.
Hi @whisquer

A lot of these issues can be solved my letting go of the idea that R Factor is a fire and forget EA. I think a lot of traders WANT to believe RF is an EA you just run and go to sleep....this is a very costly lesson imho.

As I have said before, I trust RF up to a point...(the same goes for any EA btw)...and once it passes a certain threshold I just go manual. I've avoided about 75% of all the losing trades on the "main" signal this way. Must be said as well....yes.....I am taking more risk this way. The question is, how much more? Well....it's not really rocket science what I do.

Once I take RF off manual, i delete the SL, and I move the TP by hand....that's it. So far, I've been doing very well with this approach. In the last month, only 4 trades didn't close after 12 hours, and I hedged them....turns out, I also made money from the hedge :)

I am not encouraging anyone to go down this road btw; RF is a great EA, and I do believe that in time, if you just let it run, it will produce the results you would expect.
 

Bean

Forex College Student
But enough of that, I want you to consider what convering R Factor Mean Reversion strategy, to R Factor H4 Breakout Strategy, has done for me in the meantime, since 1st June 2021:
Thanks @whisquer (y)

From the numbers you posted, which is R Factor Mean Reversion strategy and which are R Factor H4 Breakout Strategy?
 

Bean

Forex College Student
A lot of these issues can be solved my letting go of the idea that R Factor is a fire and forget EA. I think a lot of traders WANT to believe RF is an EA you just run and go to sleep....this is a very costly lesson imho.

As I have said before, I trust RF up to a point...(the same goes for any EA btw)...and once it passes a certain threshold I just go manual. I've avoided about 75% of all the losing trades on the "main" signal this way. Must be said as well....yes.....I am taking more risk this way. The question is, how much more? Well....it's not really rocket science what I do.
I am doing something similar @Balls ....I was one of those traders btw ;).....I just let it run and yes, I was making a + , but taking significant losses as well. I don't do it every night, but say 2 out of 3, I will trade Rf actively and intervene when necessary.
 

Christophone

Forex Grad
Hi y'all,

I know that I was meant to be updating this diary more regularly, but in between : (a) work - my boss must really like me, adding projects onto my plate while I struggle to hire an additional pair of hands :); (b) performance of R Factor's Mean Reversion strategy - oooh it has been NASTY; (c) the slew of set files and updates to the EA that I haven't been able to keep pace with, and (d) my focus on other projects; I've neglected the updates for a bit.

But it's no secret that R Factor Mean Reversion has been struggling. You don't even need updates from me. Just check out the Dev's web page at: https://www.myfxbook.com/members/johnmacknamara/r-factor-portfolio-mean-reversal/8016551
This was the strategy that I've been writing all along on. And yes I suffered losses, probably worse than documented on his myfxbook page. Why? Because the brokers I used tend to send their deals straight through to Liquidity Providers, as opposed to internally warehousing their trades and netting off traders against each other. Result: at rollover times, you may experience part-fills, seconds may go by without ticks being offered by the LPs, and fewer LP dare take the risk of being the one left 'holding the baby' should the trade go bad. Remember, with my kind of brokers (maybe not yours), the position taken by the broker is directionally the same as the one you took as well.

The upshot and net result of this is that I may experience worse slippage (because... no LP is offering a decent price, with a decent spread, at that material time right around rollover). And when the trade does close, the price action or price offered may have severely turned against you. So yes, I had to spend time in conversations with the brokers etc. and to lick my wounds. You know those difficult conversations, why did this happen, why not with this other broker, etc etc.

I don't want this to turn into a gripe-fest, other than to advise that the saying is true; rollover strategy might be OK so long as your broker has a wide user base with lots of trades that are internalized by the broker. But for the broker that sends each trade straight to LP; rollover may NOT be ok since there may be limtied LPs on their panel, or LPs are not willing to offer decent pricing, or spreads are so high that the brokers filter out these prices anyway.

But enough of that, I want you to consider what convering R Factor Mean Reversion strategy, to R Factor H4 Breakout Strategy, has done for me in the meantime, since 1st June 2021:
View attachment 1695

For me, this is as good as it gets, in this difficult period.
Hey @whisquer , long time no see!
Good to hear from you again :)

Did those losses come mostly from the breakout strategy?

On which pairs are you running it?
 
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