No doubt the CapEA which is running freely in the Singapore VPS ( now facing problem, a bit on that later) is doing fine churning little profits on a daily basis. However its achievement is nothing to shout about rather than being an under achiever. if its getting a 0.07% profit on a daily basis yet its highest running profit is about 9,000k out of 178,000k funding or 5% and it happen once in a blue moon, thats not much a risk taker at all. So we are back to our demo lab figuring whats the optimum risk that CaptEA should take.
BTW, fantastic result is seeing at the All CPs at 300k demo Capt EA runs, doubling its 300k to 600k in a matter of about 2 weeks trading ! But this is with some manual intervention where once in a while we look at the trades being opened at any particular time. If there are too many trades running (parameter would be set) but RPL is in profit (to set parameter on how much) then we invoke the close all trades with the Close All Scripts. Trades will be closed fast the running winners and the losers too. But in the end the sizeable profit is ascertained and all tradings back to Square 1. This has worked a number of times. Of course Capt EA would eventually decide on the best course of action trying to break even, but our action maybe the better one.
This course of action is not necessary if we are very confident or familiar with CapEA money management. We dont dare to play with the lots parameter as it creates a lot of variables. So we decide on what is the right size of funding with the intention that CapEA RPL would not hit Margin Call as the funding amount is sufficient.
This should not be taken lightly. as we have faced MC even with a real account and demo accounts a few times just as our funding is not large enough. At that time it was something like 20k, 4cps and 0.01 start lot.
Now back to the experimentation on Profit and Risk. So lets decide on what is the ideal fund for the trade. We anticipated the RPL to be as high as 12k.
Quite simple calculation where we multiply 12k to the reasonable amount.
There are 3 module running where fund is 3x,4x and 5x of anticipated RPL.
So the experiment has begun with demo accounts of 36k, 48k and 60k. If everything is right then there should be any problem. But lets just see how this things go before making any conclusion.
The experimentation began yesterday.
