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📚 Alchemist Document

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Key Features of Strategy

The EA trades in the Forex CFD market, trading in 3 currency pairs: GBPJPY, USDJPY, GBPUSD and EURUSD with the following key conditions:

  • These currency pairs have volatility according to the opening/closing times of the US or EU trading sessions.

  • These currency pairs have an overarching price trend.

  • These currency pairs have clear catalysts driving movements.

The mechanisms and conditions of this strategy were derived from backtesting historical data from a high-quality data provider (Tick Data Suite: Data Quality 100%) from 2012-2024, over a 12-year period. This data was rigorously researched and back tested according to statistical principles, eventually becoming the EA Triangle Alchemist. The objective is to generate stable, sustainable long-term returns with low risk across all economic conditions.

The key points

  1. Places great emphasis on Risk Management and the long-term Robustness of the system as the main priority.

  2. Low risk level, even for long-term investments or during periods of high market volatility.

  3. Easy to use with a clear systematic investment process that does not rely on the discretion of the investor, which is one of the strengths of the Quantitative & Systematic investment strategy.

Summary of Trading Rules

  • Trading Approach (Principle): A breakout time-based trading strategy that focuses primarily on order management tactics and money management. Suitable for medium to long-term investors (expected timeframe of 3 to 6 months or more).

  • Risk Management: Trading the 4 currency pairs to diversify the overall portfolio (Diversified Trade Management).

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Who is EA not suitable for?

The EA is not suitable for investors who want guaranteed returns in a short period of time, or want to preserve their principal with absolutely no risk. It is also not suitable for investors who lack an understanding of systematic, rules-based investing philosophies.

Key Risk To Be Aware of ?

There are 3 main risks:

  1. Risk from structural changes in the economic system and long-term investor behavior, which could impact the statistical edge of the investment strategy.

  2. Trade execution risk, arising from the trading process being unable to execute orders as specified, e.g. issues with the VPS running the EA or the broker’s server.

  3. Short-term return volatility risk, from not giving the strategy enough time to work and generate expected returns from its statistical edge. The recommended investment timeframe is 3-6 months or longer (Reference from bootstrapping simulations).

Backtesting Principal

  • The strategy was backtested from 2012 to 2024, a period of over 12 years, to test the stability of the system across all economic cycles. The starting investment was $10,000.

  • The data used for testing was split into a 7-year in-sample period and a 5-year out-of-sample period.

Strategy Specifications

  • The system will close all orders before the end of the day to facilitate risk management and account funding/withdrawals for the account holder.

  • The system will hold no more than 7 orders per day

  • Commission is set at $3 per lot (prop firm standard).

  • Order execution delay or latency is set at 275ms (standard broker latency).

  • Spreads are set based on actual Tick Data Suit (Dukascopy Bank)

  • Stop loss is applied to every position (max risk per trade can be set).

  • Not sensitive to slippage and commission costs.

  • Does not use martingale or grid systems.

** ผลการทดสอบย้อนหลังไม่ได้เป็นสิ่งยืนยันถึงผลการดำเนินงานในอนาคต เราจึงได้ทำการวิจัยอย่างละเอียดเพื่อเพิ่มโอกาสถึงผลตอบเเทนในอนาคต

Backtesting Result (Include out-of-sample)

  • Max Risk per trade ( % of balance ) = Fix Loss max 1 % of Balance

  • Initial Balance = 10,000 $

  • Leverage = 1:30

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