Managing high risk-high gain robots
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Hi,
I have been experimenting with a 100% fair value robot with no stop loss. The results can be very impressive in backtesting, sometimes winning over successive years with acceptable drawdown. Eventually though, the big drawdown usually comes and blows the account. I ran a test on 15 pairs from 2008 and three pairs actually stayed in profit throughout with the other 12 pairs blowing up.
I then ran some blocks of trades using a martingale with larger lot sizes. I'm currently trying to find a strategy where I repeatedly run blocks of 10 trades on three pairs simultaneously knowing that one and rarely two pairs will fail, but unless all three blow up over 10 trades it will result in an overall profit.
Prior to this I have focussed on trying to make consistant, lower level profits with my robots and this is a refreshing alternative approach.
Has anyone else taken this route? Are there similar, established trading or money management strategies out there that work?
Mike