So, Which settings should I use?

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The best settings you can use are those you have found for yourself using your EA Testing and optimisation skills. You will own those setting and take full responsibility for them. The alternative is to look at what worked best in the past. The EA input picture below shows the settings of the best results achieved in testing - those are always a good guide.

When doing our testing we did a full optimization test for each of the 4 entry techniques using the 15 minute timeframe:

The results were

0  The RSI  entry    $ 3409 down to $ 2999 after 10 results

1  The RSI  and the envelope entry    $ 694

2  The RSI Hook entry   $  2244 down to $ 951 after 10 results

3  The RSI Hook and the envelope entry $ 1 055

The most profitable entry method was clearly the RSI only method for this currency.

This meant that we could ignore the Envelope settings and focus on the optimizing the RSI and and exit methods for our main setting options

Testing results have shown that:-

1. The entry method of 0 (RSI OB/OS) has produced the best results for this currency
2. The entry bias should be keep at 0 for long term trading
3. Because the best entry strategy is the one only using the RSI OB/OS strategy there is no need to worry about the envelope period and envelope deviation.
4. The only inputs of importance is the RSI OB/OS and RSI Period and the exit strategy.

From a trading risk point of view the trader should then consider results that:-

1. Give low draw-downs
2. Give low transaction counts ( high transaction counts are riskier)

Below are the results obtained:-

Account Type

It is vitally important to use a Forex account that caters for MICRO lot sizing so that the DIAD system can calculate lots as accurately as possible. You account must be capable of opening transactions with a size of 0.01 lots.

Best result statistics

Please note that the 1 setting on the RSI is a high income but high risk setting. Consider using an alternative setting after watching the setting video. Demo Trade before use.

The Best result settings

PLEASE NOTE THAT THE SETTINGS ARE BASED ON THE 15 MINUTE TIMEFRAME

Results sorted by best results per exit method

The table below shows the best results of exit method used. Exit method 10 is by far the best historic method

Results sorted by largest gains

Please note that the 1 setting on the RSI is a high income but high risk setting. Consider using an alternative setting after watching the setting video. Demo trade before use.

Results sorted by Expected Payoff

Payoff refers to the ratio your gains are to the drawdowns experienced. You want high gains with a small drawdown. this table sort the results of the highest payoffs.

The profit factor is almost identical to this table so the profit factor table is not presented

Results sorted by smallest drawdown

If you are most concerned about exposure to draw-downs below are the 10 results with the lowest draw-downs.

Results sorted by largest drawdown

If you are most concerned about exposure to draw-downs below are the 10 results with the Highest draw-downs. They should be avoided

Account Sizing

There is a difference between your account size and the AccountAllocation input into the EA. The account size is your actual account balance which can vary from time to time. The amount in the AccountAllocation is the amount of your account that you are going to allocate to HAPPY Envelope trading.

So when starting to trade the Happy Envelope EA for the first time we suggest that you follow the process:

1. Demo trade a number of settings in a demo account for 2 weeks to see how your particular broker processes react to the EA. Allocate no more than 10% of your Demo account to the Happy Envelope EA.
2. Then when moving to a live account allocate 10% to 20% of your account to the Happy Envelope EA. Over time increase these amounts based on the results you achieve.

Testing Disclaimer

The above test results were generated using third party software and data. We used the MT4 Strategy Tester and DukasCopy data imported through TickStory. We use EveryTick basis of testing every final test and cross check results using up to 3 independent computers. We do NOT use the Genetic Algorithm and test every combination. In most cases we also use independent parties to verify the reasonableness of you test results. Although we take as much care as we can there are inherent limitations to the Strategy Tester with huge differences being experienced from test to tester testing the same item.

These test results are provided as a guide to help you get the best out of your Happy Envelope EA. They are not provided for marketing purposes or provided to try to impress or deceive anybody – there is nothing to be gained by that. So please use them for what they are. If you can not duplicate our results in your own testing do not be concerned – that is normal as there are too many variables that have to be identical for that to happen.  This further points towards the limitations of testing results. So please do not try to discredit us if you don’t – we are truly taking as much care as we can to produce these results. We will also not spend any effort at trying to reconcile results you get in your testing with ours. If you do not like our results and feel more confident with your please use your results.

Also be aware that there are many limitations to using test data. Fixed spreads are used when testing whereas spreads can vary considerably in reality. Slippage could occur in reality.

Therefore Expert4x and its employees and owners can not be held responsible for any losses suffered as results as the guidance provided by these test results and the use of the Happy Envelope EA. 

Please use these test results with the knowledge of these shortcomings

Questions and Comments