Improving FAP Turbo Profit With v45 Pro
Is it possible to improve FAP Turbo profit by better managing those occasional large losing trades? The answer is a resounding YES, by making prudent use of some settings available in FAP Turbo Pro v45.
By reducing the damage from those occasional large losing trades we can significantly increase the FAP Turbo expectancy by reducing the size of those large losing trades.
The three most common approaches and settings used to reduce the damage from the inevitable large losing trades are
- Close Trading Session Early - avoid opening new trades in last hour of typical trading session using the Scalper_EndWorkTimeHour setting
- Tighten Stop Loss - reduce the size of losses by tightening stop loss with the Scalper_EURGBP_StopLoss setting
- Set Daily Account Loss Limit - set a daily loss limit for the account using the Scalper_LossLimit setting
However, the only approach I recommend is to tighten the stop loss. The other two approaches have problems that make them less effective which I will explain shortly.
It can be shown that adjusting the stop loss to a more appropriate level can reduce the overall risk per trade and effectively increase FAP Turbo’s expected payoff while at the same time smoothing out your equity curve.
Of course the if you decrease the stop loss value too much you actually do more harm than good so you need to understand where the sweet spot is. If your stops are too tight then, although you’ll reduce the maximum size of the individual losses, you will increase the number of losses because you will get stopped out more often.
You can read more about these different approaches to maximum FAP Turbo profit, as well as the corrsponding tests, in the section Reducing Big Losers with FAP Turbo Pro.