StatArbPro EA

[XOden]

You can take as few or as many pairs to play.  That's up to you.  Each position risks 2% by default and is adjustable.

Some folks like taking more risk using larger than recommended lot size or trading more pair groupings than they should.

There's nothing anywhere that says you have to take every pair listing.

My first two trades I used only one group of pairs (2 separate pairs arbed).  I closed out in profit and repeated and closed out in profit.

Then I took 2 pair groupings and closed out in profit.  Now I'm in 5 pair groupings and hoping to close out in profit next week.

The wild card in this system seems to be how many and which of the pair trading recommendations you would take each day.
If it recommends more than you can risk is there a methodology provided to select only the best trade recommendations?
Also, I'm wondering if the EA will be intelligent enough to work by first ranking the trade recommendations in terms of positive expectancy, then selecting trades dependent on number of trades/risk able to be taken and pairs available on your broker?

Regarding exotics, I took a look at the myfxbook trades summary which provides the following info:

• Out of the top 13 pairs ranked by pips won, there are only 2 exotics: EURSEK, USDNOK (although they are the 2 largest pip wins!!).
• Out of top 13 pairs ranked by largest number of trades taken, there are no exotic pairs.
• Out of top 16 pairs ranked by largest number of winning trades, there are no exotic pairs.

So although it would be nice to have a broker with all the exotics available it looks like it could easily still be traded without them.

I'd love to hear McLeans thoughts on these.

[Umeku]

Well, greetings everyone. I jumped on board after XOden's suggestion on another thread. Patiently waiting for indy and response to my questions.

I made a quick comparison table when I was researching available brokers, take a look here: https://docs.google.com/spreadsheet/ccc?key=0ArZy3Hp-O64JdER4dUp1bWtLTUJOVmp5Umk0bzBOOWc

I'm choosing between InstaForex and Trading Point. IF have a better selection of pairs (pretty much everything mentioned by Anchorpoint some pages ago), but TP have somewhat lower spreads.

What do you guys think I should go with?

He hasn't responded because he promised to release the 1.3 indie update and has been busy so he could meet his release date.  He doesn't want to be like other vendors that say they are going to release something and not do it in the time they commit to.

He's been swamped with questions and may temporarily suspend any new sales this coming week until he can catchup with things is what i am hearing.

[Anchorpoint]

Well, greetings everyone. I jumped on board after XOden's suggestion on another thread. Patiently waiting for indy and response to my questions.

I made a quick comparison table when I was researching available brokers, take a look here: https://docs.google.com/spreadsheet/ccc?key=0ArZy3Hp-O64JdER4dUp1bWtLTUJOVmp5Umk0bzBOOWc

I'm choosing between InstaForex and Trading Point. IF have a better selection of pairs (pretty much everything mentioned by Anchorpoint some pages ago), but TP have somewhat lower spreads.

What do you guys think I should go with?

He hasn't responded because he promised to release the 1.3 indie update and has been busy so he could meet his release date.  He doesn't want to be like other vendors that say they are going to release something and not do it in the time they commit to.

He's been swamped with questions and may temporarily suspend any new sales this coming week until he can catchup with things is what i am hearing.

Great spreadsheet + rep to you !  Trading Point looks best, those missing pairs are hardly a deal breaker here 

[XOden]

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Looks like new sales have beeen suspended....

Off the statarb website:

"We are currently suspending orders in an effort to catch up with the overwhelming and unexpected response that we have had thus far. If you would like to be updated when we re-enable the ordering process, please sign up for notifications below:"

[XOden]

I asked McLean why the early suspension of sales and he responded below:

"My priority are my customers and I need to provide them good customer service and right now it's getting a bit out of hand, so I 've decided to shut it down, until such time that measures have bene put in place to better streamline the order process and provide the best customer support."

[canfx1]

Hope the suspension is temporary...

[deweymcg]

Just my luck--I was all set to purchase this today I even had the page all ready but had to go out earlier and saw this when i returned

[Bigsteve]

Yea it sucks here too. I was going to purchase tonight at market open with a live chart updating. Really sucks now.
Well, 2K is outta range for me. 300.00 would have been another matter.
Since I won't ever be using this, good luck to all and I hope it works well for you.

[XOden]

I think the halting of sales is temporary.  He wants to move everything to a bigger server in the data center and to have time to respond to customer questions.

Well I just closed GBPUSD and EURSEK for 936 pips.  Didn't make a whole lot though oddly first because I was  trading small lots, but also because the EURSEK value is not very high dollar wise...



Still have about +200 pips  in open position however...

[XOden]

It is...I guess the good news is it'll give those waiting to purchase more feedback from customers who already bought....

Hope the suspension is temporary...

[sdek4x]

Same for me ...just saw the advise on Fx Envy thread ... and purchase is temporarily closed .. .:-((.

[statarbpro]

Hi, I am thinking about buying. But when I see this I see much DD... :
http://www.myfxbook.com/members/StraturaGroup/statarb/287178

Hi see equity went from +13% to -10% then 16 to -16% then 13 to -8%... So 30th november to 16 may it went only from 11 to 20%...

Also overall performance is "only" 4%/month but DD is 31%...

Any remark?

Thanks

Sure, as I said, the real testing of the EA (and that's the EA) was started 2-3 months ago. Same account, yes. But that is the portion you should be paying attention to. Notice the DD took place at an entirely different time. I'll be putting two real accounts online tonight one $300K and 1 500 EUR.

That said, the algo has been running for quite some time, but not on MT4. MT4 is a recent port.

[statarbpro]

Thanks for you explanation, and yes i'm not fluent and always i was said sorry for this weakness.

I'm understand very well about licensing for one account but i was read that a customer needs change his ONE account to another broker simply was a setting procedure at web page.

I was spent too many thousands legally to try now thief anything, mate

The new web based licensing service will be online for everyone in the next day or two and you will be free to switch your accounts as you please. I've emailed the link to a few people today to do these things and if the reports are all positive I will email it out to all. If you need it taken care of before then just shoot me an email and I'll be glad to switch it for you.

[Tekel]

Will those of us recently frozen out get a chance to purchase?  //Tony

[statarbpro]

@ statarbpro, or anyone who has read the manual, refer page 28, about trade exits, see quote, thanks for discussion 

5. Exit trades either:
a. Winner - At the trigger. There is no need to confirm an exit signal.
b. Loser - If the trade reaches 2X your risk parameter. Meaning:
1. Your risk is set to 1%
2. You have a $10,000 balance.
3. The trade is drawn down $200 or 2%.

So, when I set my initial trade position size, according to what I thought was my RISK eg 1%, now I see that I really need 1/2 that size because my real RISK is 2%

Now, is that 2% for both positions, if not, hey maybe I'm now down 4% due to having 2 trades open correct?

I wonder how the EA is going to make these critical calculations when it goes live, or will is just trade an arbitrary standard size of 0.10 something like that?

No, 2% risk is 2% risk for the entire arb basket.

And no, it can't trade an arbitrary lot size. That would defeat the entire position normalizing / market neutral methodology and skew risk to one side or the other. If you're reading a euro pair, and aussie par and your account is in USD, everything has to come back to USD as that's what your risk is based on. 100K EUR is 126K USD at the moment and 100K AUD is 99K USD, everything is as neutral as we can make it so no, arbitrary lot sizing would not be proper.

And as far as the EA controlling risk, it's really quite simple. A magic # is assigned to any 1 arb trade. PL is calculated for that arb trade and if DD reached the threshold the arb is closed. Same for the overall basket of arb pairs.