【Weekly Results】Try managing a free EA portfolio! （9-13 January 2023）

2023-01-14Portfolio 1,Portfolio management

It’s the second week of 2023 and many of you may have resumed trading in earnest by now. How has the year started off?

The way to assemble a portfolio is free, but in general, it is effective to “combine EAs with low correlation". Since it means “high correlation = trading at the same timing", it is naturally not suitable for combining as a portfolio. So, what kind of combination is better?

What is the point of combining EA with low correlation?

(1) Choose one with a different logic

By combining EAs of different logic, you can reduce the correlation. The main logic is known as follows:

Trend following: Aim for a trend continuation at a point of push or return
Breakouts: Aim for price movements that break through the highs and lows that mark the market
Counter: Aim for a reversal of price movements from highs and lows that are milestones in the market
Morning scalping: Aim for a return after a large price movement early in the morning Japan hours
Grid trading: a strategy to accumulate positions according to a certain law

* Some ones, such as grid trading EAs, may have a large unrealized loss, and you may need a sufficient balance to avoid loss cuts.

(2) Choose a different currency pair to trade

For example, if the first EA trades dollar-yen and the second EA trades euro-dollar, if you choose the euro-yen, which is a synthesis of them, the correlation will be stronger. Instead, it is more diversified to adopt currency pairs related to the pound and the Australian dollar.

(3) Choose one with a different trading time frame

Depending on the position holding time, it can be classified into scalping, day trading, and swing trading. Dispersing these is also important to reduce correlation. This is because the logic and nature of trading are similar on the same time frame, and the timing of entry and exit overlaps.

MQL5 Free EA – Portfolio No1

Starting this week, we have added “White Bear DT for NOZAX", which will be given away as an account opening campaign exclusive to this site, to our portfolio. When building our portfolio, we decided to choose a strategy to lower the correlation by trading different currency pairs.

Note that the number of lots for each EA was determined based on the size of the maximum drawdown of the long-term backtest. * The larger the maximum drawdown (MAX DD), the smaller the number of lots.

Once again, the rule of this project is “build a portfolio in a form that you can reproduce using only EA verified on this site", so please copy it if your performance is good!

NOZAX Portfolio No.1

Account: NZX Zero (ECN) (NOZAX)
Initial balance: 100,000 yen
Working EA:

TraderMind EA MT5: currency pair: USDCAD#, timeframe: 1-hour, number of lots: 0.03 lot

MQL5 Free EA – Backtesting Verification 8 “TraderMind EA MT5"

White Bear DT for NOZAX: Currency pair: GBPJPY#, Timeframe: 5-minute, Lot quantity: 0.01 lot
White Bear DT for NOZAX: Currency pair: USDJPY#, Timeframe: 5-minute, Lot quantity: 0.02 lot

≪Exclusive to this site≫ NOZAX.fun exclusive campaign 1st!

Results from 1/9-1/13

Here are this week’s results.
- TraderMind EA MT5: 1 win, 0 losses, with total profit and loss of +14 yen (2.6 pips)
- White Bear DT GBPJPY: 3 wins, 0 losses, with total profit and loss of +862 yen (88.0 pips)
- White Bear DT USDJPY: 1 win, 0 losses, with total profit and loss of +310 yen (16.0pips).

This week, I managed to win all 5 fights (+1186 yen), but it took more than 2 days (almost 3 days) for the position I took on 1/9 of TraderMind (USDCAD) to be closed, and it was a week that I didn’t feel like I had won. The balance recovered to 100,000 yen to 100,877 yen.