Dear DARWIN Owners,
Some of you already have gathered a significant amount of AuM – that’s great! However you may have noticed that at the same time divergence in some cases became poorer. This means that your investors will get a worse performance compared to your original trading and is due to the fact that liquidity is a rival good and always limited.
Most brokers can offer you about 10 lot without slippage based on exhausted ToB (Top of the Book, a broker’s liquidity for the current price). You may even then be faced with price deviations but in this case it may highly likely be due to a signal->execution delay, especially when trading momentum based strategies (news, tick scalping etc.).
However many DARWINs don’t open positions especially when the price moves fast into the “right” direction. Therefore it’s totally random if delay-based slippage will be positive or negative. On average it will exactly be zero, as long as liquidity doesn’t matter respectively AuM is low. However as soon as such trading systems are applied to bigger capital (which is what we’re all striving for), deviations of the execution prices become an issue. Slippage will become more and more negative, because the positions are too big then and the broker must execute all orders on a worse price. But of course you haven’t moved the whole market by 1 Pip when your broker gave you 1 Pip of negative price deviation. It’s just that the broker can’t offer you the liquidity of the whole market.
We can overcome said problem by splitting our entries and exits into several parts and use an Expert Advisor for this – the PCEA (Position Cloning EA). Instead of entering the market with e.g. 0.12 lot, we make an order with only 0.03 lot and PCEA will “clone” the respective position 3 times each with a delay of 3 seconds. So we finally will have 4 positions each with 0.03 lot (which may be e.g. 10 lot for your investors). Will the “clones” have price deviations compared to the original position? For sure, but on average the slippage based on the respective delays will almost be zero, as long – and that’s very important – the respective strategy is not especially designed for entering the market in situations where the price moves quickly into the desired direction. Furthermore the average holding time should be at least 2 hours. If those two conditions are fulfilled, PCEA can increase capacity many times over.
Generally it is highly recommended to use a SL (Stop Loss) and ideally also a TP (Take Profit). However if SL/TP gets triggered, all our clones would be closed at the same time which contradicts the idea behind the tool. Therefore they must utilize an expanded SL/TP, so there’s a high probability that the respective positions can be closed delayed by PCEA without hitting SL/TP previously. And because it is totally random if the price will move up or down within the next seconds after the original trade has been closed respectively stopped out, slippage based on delays when closing the clones will almost be zero on average, too. It’s important to understand that PCEA will sometimes cause big slippage but in both directions. The EA will empower you to trade much more AuM without too much divergence for your investors.
Summary: The PCEA
-> enables you to split your entries and exits to increase Cp (capacity).
-> is aimed at non-momentum-based trading strategies.
-> can’t be used for tick scalping systems.
-> requires you to reduce the original risk per position.
-> is preconfigured for currency pairs with only ONE clone.
-> can be customized (also for other assets).
-> is coded as an EA for MT4 and totally free without any limitations.
-> can be downloaded via the following link:
The PCEA’s input parameter:
-> Enable PCEA: true/false [default = true]
-> PCEA magic number: 9999 [etc.]
-> Heartbeat in ms: 400
-> Comment strings to scan: MyEAsName,MyManualTradesComment [etc.]
-> Number of clones: 1 [etc.]
-> Time interval to split entries/exits: 3 [etc.]
-> Copy SLTP: true/false [default = true]
-> Increase initial SLTP by points: 100 [etc.]
-> Attempts to open position: 3 [etc.]
-> Attempts to close position: 100 [etc.]
-> Delay (sec) between order open/close re-tries: 3 [etc.]
-> Add ticket number in comment: true/false [default = true]
- “Heartbeats in ms” refers to the EA’s frequency when scanning the terminal for any (recently) opened position(s). For example “400” means that the expert makes its checks every 400 milliseconds. It is not recommended to use smaller values.
- “Comment strings to scan” means that PCEA continually scans all positions listed in the terminal but only recognizes those that include the respective string in its comment. It doesn’t matter what else is written within a position’s comment, the expert only checks for the respective character combination. For example the EA recognizes “BTEA2” within “main|_BTEA2-live” etc. If “Comment strings to scan” is left empty (= default setting) the expert considers ALL positions.
- Regarding SLTP “1 point” refers to the last decimal digit of an asset’s price. For example “100” means 0.00100 on EURUSD for 5-digit brokers respectively 10.0 Pips.
- Pending Orders are generally ignored.
-> You can only use ONE PCEA unit per MT4 instance.
-> You can use different settings for different assets only via separate MT4 instances.
-> Test the EA on a demo account before using it live.
-> Use the tool on your own risk!
Feel free to discuss the tool’s functionality in this thread!
Please note that "Delay seconds between entries/exits: 3 [etc.]" has become "Time interval to split entries/exits: 3 [etc.]". This means that - in this case - "3" seconds are now the time period which will be used to generate 1 clone. If said time interval is e.g. set to "10" and number of clones to "2", then each 5 seconds one clone will be created until 2 clones are listed in the terminal. You can download the ZIP file again to get the newest update v1.2 now!