On our journey we will apply a buying and selling bot. In my prior evaluation of Finest Gold buying and selling EAs 2023 (earlier than June), there’s a chart which exhibits at the moment finest Gold buying and selling EAs on the MQL market. That is additionally a map of its type. This map exhibits us the places of the EAs span on dimensions profitability and realiability. The additional to the highest proper, the higher.

The values listed here are computed utilizing the publicly accessible information from the stay alerts:

• Profitability: Whole earnings devided by the quantity of weeks. In this sign for instance we’ve got 222% earnings after 17 weeks, the EA could be on the X-Axis at222/17=13.0

• Reliability: The profitability devided by the whole drawdown: 13.0/34.8=0.38

Prop Companies

As soon as we’ve got charted the map of obtainable Knowledgeable Advisors (EAs), the subsequent step is to superimpose them onto the map delineating the “cash making territory” outlined by the prop companies boundaries. Initially, this listing contains a concise choice of the thought-about proprietary companies.

Every of the necessities may be drawn as an space on the map. FTMO for instance, has a drawdown restrict of 5% per day. The revenue aim is 10% and we’ve got solely 30 days to achieve it.

After we translate these boundaries into our profitability, time and threat map, we will draw a rectangle on our Prop-Agency-Journey Map.

• The required minimal profitability per week needs to be round 3% and the max drawdown is 5%. Dividing 3%/5% = 0.6 we get the reliability worth on the Y-axis.

• The X-axis worth – the profitability – is at the least 3% per week. That’s the reason the blue space may be prolonged infinetely to the precise. If we make 300000% per week with a secure drawdown of 5%, no dealer will complain. 😊

• So lastly we draw that rectangle beginning at X-Axis=3 and Y-Axis=0.6.

Now that we’ve got a transparent understanding of the way to chart the cash territory of a single prop agency, let’s delineate these profitable territories with the top-rated prop companies.

The Hole

As soon as I had mapped out the cash making territory, it dawned on me that not one of the examined Knowledgeable Advisors (EAs) resided inside this area! 🤯

To make issues worse, nearly all of proprietary companies appears to supply variations concerning the profitability dimension. However all of them require excessive reliability of at the least 0.6. The excellent news is, once we make it to commerce certainly one of them, we will commerce all of them.

The Approach

The hole we observe between the EA-points on the map and the cash territory is one thing we should always examine in additional element. The prop agency necessities are mounted. However in the course of the computations of the EA-points we quitely accepted a couple of assumptions:

These two elements can have a really robust impression. After we have a look at the efficiency of AI for Gold over time, we clearly can see that it adjustments everytime a brand new AI mannequin + new technique have been deployed.

So mainly we’ve got right here tree totally different methods which may be charted as three totally different factors on the map. Including the efficiency from the backtest of model 1.2+ because the fourth level, we receive the next chart:

So the brand new model may be very a lot able to buying and selling prop companies. The stay and backtest outcomes point out this. Now we will derive a configuration technique for AI for Gold to commerce the prop companies.

You’ll be able to obtain the set information from right here and alter the “Multiply all Heaps” parameter to 0.5.

Conclusion

Can we commerce the prop companies inside the cash territory? Sure! Subsequent time I put up an article about prop-firm buying and selling, I’ll concentrate on constructing a portfolio of uncorrelated EAs.

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