Update On ReticoloFX Performances And Strategy 9


Hi Everyone,

After more than 4 months of trading with ReticoloFX we can say that we all know much more how it works and what we can expect from it.

As we expected, after we passed the summer months, the EA has restarted making money. This is how it works and how it is expected to work.

ReticoloFX uses a purely mathematical trading strategy and being so we don’t care much about the direction of the trend. The important is that there is a clear one. We spent 2/3 months with almost no direction with quite wide ranges. This is absolutely normal and it’s part of the game.

But it’s very very important to be able to stand periods like the one we passed so that we’ll be ready to make the profits we expect to have. It’s like seeding to reap “rewards” when everything is ready for that. And that’s what happened since the begginning of September.

The key is using a conservative approach when choosing the lot size and have the patience to wait during periods like the just passed summer.

As you know we are working on ReticoloFX 1.5 that will dramatically reduce the number of open orders at the same time. But probably we won’t do any change to the core strategy. It’s very difficult to find a “filter” to avoid being stucked in range periods as you really don’t know you are in a range until time passes. Only a “human” analysis can help in that. But ReticoloFX is meant to run “unmanned” once you have enough “room” for it to do its job.

We’ll write more about ReticoloFX when we’ll be ready for beta testing version 1.5 that should be in a couple of weeks maximum.

A presto,
Andrea


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9 thoughts on “Update On ReticoloFX Performances And Strategy

  • Andrew

    Hi
    I understand the need for a conservative approach and that the strategy is purely mathematical.
    But I don’t understand how you can say that Reticolor is making money again after the ECB/QE3 inspired rally.
    On the EA performance charts all the EAs are still in drawdown – varying from -53% to -17% (JPY basket was restarted after margin call wipeout, so I am excluding that).
    If all the EAs are still in Drawdown, surely they are not making money as yet, only reducing the drawdowns?
    And if the ECB/QE3 rally fades quickly, we might be back to even bigger drawdowns than the ones we had over the summer?
    I am finding it very hard not to be nervous about using Reticolor. If one could pick a good entry point like we had in June, it works great. But if you start early on in a ranging period, I’m not sure tha maths will get you through.
    Having said that, my early intervention strategy, posted on the main Reticolor site, has not worked either thanks to Mario and Bernanke! :-)

    • Paolo

      Hi Andrew,
      you are probably not interpreting correctly the data on MyFxBook. Their “Drawdown” figure is the maximum historical drawdown, and not the current drawdown (or floating P/L). As a matter of fact here are the closed profit&loss and floating profit&loss figures reported right now on MyFxBook:
      Basket USD: +51.54%, -1.14%
      AUD/NZD/USD: +18.93%, -29.07%
      CAD/EUR/USD: +35.56%, -0.17%
      CHF/EUR/USD: +26.92%, -1.78%
      CHF/GBP/JPY: +31.24%, -1.29%
      EUR/GBP/USD: +35.25%, -1.96%
      EUR/JPY/USD: +37.09%, -1.63%
      In other words after the ECB/QE3 rally we have an average +34.22% gain (closed profit) versus an average -5.29% floating loss.
      If we also take into consideration the old JPY basket (-99% gain and 0% floating PL) we have an average +20% gain versus -4.63% floating loss.
      Therefore right now there is no doubt that ReticoloFX is making money.

    • Paolo

      Hi Max, it got a margin call. We realized too late that money management was too aggressive for the two baskets, compared with the rings. With ReticoloFX rings we can trade 1 microlot per each 1000 USD deposit. With ReticoloFX baskets we can trade 1 microlot per each 2000 USD deposit. This just makes sense because rings involve 3 pairs, while baskets involve 7 pairs. Anyway the performance of the overall ReticoloFX portfolio is largely positive also if we take into account this margin call. As of this morning (5th of October 2012) we have an average +16.9% gain versus an average -11% floating profit&loss. These figures also take into account the 99% loss incurred by the first JPY basket.

    • Paolo

      Hi Skyboy, if your current ReticoloFX v1.4 is closing positions at a loss then there is definitely something wrong on your platform. Please send us an email with your specific situation. The upcoming v1.5 will not change radically the current trading algorithm. It is meant above all for reducing the number of trades that are kept open at the same time.

  • his

    Hi,

    are you still working on the 1.5-version of the reticolofx? The post was in september. In the meantime you got something new off the ground (like futurofx or the announcement today), but we heard nothing about the 1.5-version.
    I´m satisfied with the EA, but the number of open orders is still a point of critism.
    Best regards,
    his