This Analysis compares the best settings for various time-frames and market phases with each-other to answer the following questions:-
- Are there settings that are common in most successful settings
- Which settings are the most critical?
- What happens if the settings are switched?
Below is a table of the best settings for the EURJPY when using the phased based analysis. It is a lot of information but it does provide some guidance for the settings we will use for the investment options for the 5 min timeframe. Please view the comments below.
Some general observations From the table above:-
General profitablity
It is possible to double your account in less than a month in most market conditions
Most options have considerable draw-downs. These are very much part of the high risk, high return process.
When trading the % of Equity risk setting more capital is required because of increased drawdowns
Drawdowns
Even for the most successful results the draw-downs can be more than the trading capital.
In reality the big draw-downs are often hedged when trades are opened in the other direction.
Moving Average Settings;
It looks like the setting of 2 for the 2nd MA appears popular in most market phases
ADX Settings
Number of open deals
A very large number of open deals are required to produce these high returns. The large number of open deals also requires large amounts of capital.
Break-even and Trailing stops
In all cases the break-even or the Trailing stops improve the results
Initial stops and Targets
In less uncertain market conditions higher stops do well.
In more certain market conditions smaller stops are good.
Time of day
In most cases trading the Asian, European and early US sessions produced the best results