I need feedback on this system

Hi everybody, I have an EA with the following rules, I would like to know how I can improve it. What would you change or add? Any feedback or idea would be great.

Trigger:

1) Price breaks Parabolic Sar in M15

Conditions:

2) Daily candle: at least 100 pips bull candle for buys / at least 100 pips bear candle for sells

3) 4hs candle: at least 20 pips bull candle for buys / at least 20 pips bear candle for sells

4) ADX chart M15 above value 15

Money Management:

1) Risk 5% on each trade

2) SL: 100 pips TG: 150 pips

3) When profits 50% of TP, close 50% position and move stop to 50 pips from BE (if I move stop to BE it stops me out more often than not, only reducing the stops solves this)

I attach an example of a positive trade

 

Too much risk to begin with...Have you done any real time trades with real money on the line?

 

Yes, but only with a micro account. the system is stable, but no profits yet. I feel I've got something interesting here but I still have to improve it ... that's the reason of my post.

Do you think 5% is too much risk? I thought it was moderate because I scale out. Do you recommend 2% rule?

 

why not do some backtest?

 

Not sure about scaling out, yes 5% is too much risk. You can backtest but the results can be misleading.

 

Ok, I'll reduce risk.

I already backtested, ther results are misleading as interdim says. On live trading I end up break even. Any suggestion about possible changes to the system?

 

Then you're doing it wrong. Start over, and this time don't overfit to historical data.

 

In the example you gave, looks like SL = 10 and TP = 15.
With spread of 2.4 factored in, your SL = 12.4 and TP = 12.6.
Might want to leave SL but increase TP. Spread is too much of a factor in profit/loss with such a small target.
Looking @ your example you can see how "tiny" your win was relative to potential.

***BTW, back-test a waste of time IMO. Completely unreliable for something like this.

 

Hi Bum, thanks for your answer. SL is 100 pips and TP is 150 pips after spread (I mean already taking spread into account), but I'm with micro account.
I outlined the 3 posibilities I foresee for each trade:


Trading live I always end up slightly below BE. It seems as if I had to add something else to the system, but I can't figure out what.

 

Have you included commissions in your calculations?