Dear Brothers,
I have been experimenting with the Dancer EA as well for the past few weeks. My backtests turned out gloriously, I have had runs with really nice returns, but any “realtime” demo testing would end up in the minus, just like yours BalrogTrader. One issue is the Draw down, but that can be improved with certain settings. The real problem is the spread. When you backtest and you choose spread “2” – you must consider that this is not 2 pips, but rather 2 points. Now, most brokerages today offer 1.5-2.5 pips, but for MT4 that would translate into 15-25. When you backtest with such setting, regardless of timeframe, the EA goes in the red rather fast. I have tried modifying TP and SL points, and other settings to compensate but with little luck. At best, I can make her bleed out slower.
I really like the concept of this EA, and I would like to again thank brother Kiads for sharing it with us. So, I have decided to see what I can do with the spread. The possible solution may be to run on a ECN account that has the lowest spread that I can find, but then you must worry about commission eating away the returns. However, with ECN it is possible to backtest with “current spread” and still get very positive results. Now the commission is another matter which will have to be “live demo” tested. I will start a ECN test with it Monday and post my results here at the end of the week. For now, I am posting a picture of the backtest from Jan-Mar with “current spread” from ECN demo account.
Please note, that this is my noob interpretation of the problem and it may be wrong. If so, please correct me.
Best regards,
Michael
