Our cTrader Grid-Hedge Trading System benefits from optimising certain parameters like the DiNapoli Stochastic and other settings, this article will help you find the best settings for your symbol with a mixture of data-fitting and manual adjustments.
Market Cycles
We all know the markets move in cycles from the micro-movements of a 5-minute timeframe to much larger movements of the daily timeframe, this is why regular optimisation and backtesting over short periods are better due to the fact that an average position's lifespan is hours and not days. We recommend that you only acquire optimal settings for 1-year of historical data and review at least weekly and if you start the see a particular symbol starts to perform badly, stop trading that symbol and find another.
Which Symbols To Trade?
As with all automated trading systems the market conditions will determine which symbol is best to trade, you cannot just randomly pick a symbol and expect it to perform well, certain fundamental events can cause certain currency pairs to become very unpredictable and volatile and as this trading system is of the technical nature it will not perform well during this period. It is possible to avoid pre-planned high impact news events using the integrated news manager which should help with the fundamentals, but you as the trader will need to know when to start and stop trading your symbol.
High-Impact News Events
When you run optimisation or backtests using this trading system you may see some drawdown spikes, this is usually caused by news events, integrated into this trading system you have a feature to stop trading and close positions automatically before these events and again restart after they have finished. Unfortunately, you cannot backtest news events with cTrader using our software, so one of the best risk management features of the product cannot be backtested, the truth in the pudding, as they say, would be to run a forward test using the NRM tool using a demo account and then analyse the results.
Watch a Video Explainer
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Duration: 16 minutes
More Trades vs Fewer Trades
One of the key settings that traders miss while optimising their parameters is how many trades would they like to have running in a 12-month period, the article below will help you configure how many trades it will open in a 12-month period.