To go BACK to the previous: Selecting STRATEGIES for Tradency Mirror Trader - Familiarization

FXDD provides a simple way to take an initial look at the available STRATEGIES without requiring either a demo or live account. To do this perform the following:
Go to FXDD.com
Near the top, select TRADING SOFTWARE and then select Learn more... under Mirror Trader, again under Mirror Trader select "Click here to see the wide range of trading strategies offered."
Scroll down to see the Mirror Trader selection screen

In the upper left corner you will see two buttons; Smart Filter (default) and Custom Filter. Click on the Custom Filter button. Now, just under the Smart Filter button you will see a selection for Add criteria, click on it and select all the checkboxes and then click on the View button. All the Custom Filter criteria will be available below.

Before we begin strategies selection let's look at all the criteria we have available in the Custom Filter for strategies selection.

  • Time Frame – The period of time to which the criteria will be applied.
    We will begin with the default of 30 days.
  • Strategy Name – The name of the strategy.
    We want to see all strategies so we will use the default of All.
  • Symbol – The currency pair traded by this strategy.
    We want to see all strategies so we will use the default of All.
  • Pips – The number of pips gained or lost during the time frame.
    We want to be reasonable so we will begin with a value of >200.
  • Max DD – The maximum drawdown for this strategy during the time frame. Drawdown is the reduction of your account balance after a series of losing trades although here it is stated in pips.
    We want the least risk possible so we will begin with a value of 0-(-200).
  • Max Positions – The maximum number of positions that this strategy will open simultaneously.
    Lower risk means fewer number of positions open at once, so we will set it to <=1.
  • T-Score – This is the most important criteria for beginning with Mirror Trader strategy selection.
    The T-Score is a calculated number from 1 through 10 using the following parameters with the following proportions:
    35% – (Pips)/(Max DD): Risk Adjustment Rate, measures the profitably and how much risk was involved in producing it. Calculated since inception.
    35% – (Average Profit per Trade)/ (Average Loss per Trade): A higher ratio shows that the strategy has a better return in average, per each trade (in pips term), comparing to the risk it is willing to take. Calculated since inception of the strategy.
    20% – Momentum – gives a better score to a strategy which is suitable to the current market conditions. Calculated for the strategy’s recent closed trades.
    10% – Trade frequency – Strategy has a better chance to receive a higher score when it shows good performance in the above parameters and when it trades more frequently. Calculated for the last 30 days.

    We want the highest possible T-Score so we will set it to >=9.
  • Total Trades – The total number of trades during the time frame.
    We will begin with a value of >0.
  • RAR – The Risk Adjustment Rate (Pips/Max DD). The higher the number, the lower the risk to your account.
    We want the highest number possible so we will begin with >=3.
  • Win % - The percentage of trades during the time frame that produced positive results (Pips).
    We would like to see strategies with a high winning percentage so we will begin with =>70.
  • PL ($) - Profit or loss in US$.
    We have set up our Pips above so we will use the default of All.


When you have your custom filter set to the values above, then click on the Find button to get your results. I ran this on August 2, 2011 at 3:40 pm EDT so your results may be different from these depending on when you run yours.

I found three (3) strategies with the following results:

Strategy = Secretary Rate NH
Symbol = USD/CAD
T-Score = 9.59
Total Trades = 5
Max DD = 0
Pips = 237.4
MP = 1

Strategy = WaveRider
Symbol = EUR/USD
T-Score = 9.25
Total Trades = 7
Max DD = -71.90
Pips = 898.5
MP = 1

Strategy = Trend Friend
Symbol = EUR/CHF
T-Score = 9.25
Total Trades = 10
Max DD = -100.00
Pips = 651.3
MP = 1

I want to point out the little downward pointing white triangle to the right of the T-Score heading. This indicates that the list is currently sorted on this column. You will also notice that there is not a column for the remaining three (3) search criteria (RAR, Win %, and PL $). If you want to add them, click on the little green things at the far right of the column headings. You will also see other things that you can display that were not search criteria.

Look at the graph area at the top and you will see the performance curves (line graph) for each of the strategies. These are great curves. During the entire thirty days only Trend Friend had a minor downturn of about 100 pips, but made it up plus some before the end of the time frame. In the lower right corner of the graph area click on Combine Curves. You will see that these three (3) strategies had a combined return of about 1800 pips. That is real good for the limited risk factor we had.

Although everything looks very good at this point, there is another way we can confirm that these strategies are good. Click on the Strategy name for the first strategy and it will open the Strategy Card. The first thing you see is the Strategy Curve and it is smooth and that is goodness. I only want to point out one other thing about this strategy. Click on the Statistics tab and notice that Average Losing Trade (pips) is 0 (zero), This strategy did not have a losing trade for the entire time frame. Can you handle that?

I am not going to go over everything in the Strategy Card, but you need to become familiar with them. Selecting strategies is the most important thing you do on Tradency Mirror Trader.and you need to get very good at it. We have kept our risk low to begin with, but as you grow (hopefully) your account you will want to begin to take a little more risk. When you increase your risk you need every bit of information at your disposal to increase your chances of success.

You now need to open a demo account for the next in this series:

Selecting STRATEGIES for Tradency Mirror Trader – Run Time