3 Ways to trade Rocket EA – which one delivers best?San Keul
After more than a year of trading Rocket EA and more than tripling our account, it’s time for a recap. What are the trading experiences and what’s the best way to trade?
Basically, a trader can choose between three different approaches and in this article we’ll go over them.
Option 1: ‘Rocket’s impressive trade logic makes great profits, so let me pump it up to the max’
It’s true, our experiences are backed by emails from lots of happy clients who consistency in bringing profits home. With that in mind, several traders started to extend the trade session settings. Some even run Rocket 24/7. Others increase the lot sizing, apparently thinking that $1000 profit per month is not good enough.
Our opinion about this approach is simple: Don’t do it.
To capture profits, Rocket needs an intraday swing market, just like the GBPUSD usually shows during the Asian and early London market session. In our opinion it’s not smart to start a new trade series during the London and US sessions because the risk for a large move without retracement is too high and the result may be huge drawdowns or worse: margin calls.
A similar logic can be applied to the lotsizing. Unless you’re trading a 100K account, we strongly advise to stick to our lotsize recommendations.
Option 2: ‘Both UK and US economies saw a volatile last 12 months, so let me be cautious’
It’s true, 2016 though was a tough year for GBPUSD due to major economical topics. Britain’s voted for leaving the European Union, David Cameron resigned and Mrs. Theresa May became Prime Minister. Though, a predicted immediate economic crisis has not proved accurate, with the UK economy still growing in 2017.
In the USA, the Presidential election was won by Donald Trump which was a surprise and the impact on the US economy of a business man in charge with his stature and character was and is unsure.
We at TulipFX decided to trade “safe”. There were a few occasions where we sent out a trade alert and did not trade our live account for one or several days. On days we did trade, we set the BreakEven Close feature to true, looking for a break-even or profit close 15 minutes before London Open.
Last week we decided to trade this way only when a red news event is scheduled in the London morning session. If there is no news scheduled, we trade at default settings and let Rocket do its thing.
What did this way of trading Rocket teach us?
On our accounts, Rocket shows a nice profitable curve. We took a 20% stop in January because of being cautious (‘default’ Rocket would not have taken the stop and would have taken a large winner instead). But our ‘cautious’ approach did cost us dearly and our recovery was slow. A lot slower than most of our customers who let Rocket trade the way it was designed to do: uninterrupted.
This past year taught us that it is very hard, if not impossible, to predict trends without pullbacks and being overcautious does not always get rewarded. As a matter of fact, the most volatile events actually deliver excellent profits, as long as there are retracements.
In short: Being cautious is never wrong, but it may cost you profits.
Option 3: ‘Rocket on default settings just rocks, so let me trade it that way’
We have witnessed each of Rocket’s default trade sessions closely and are pretty proud how Rocket is able to capitalize in both high and low volatile markets. Rocket’s original development dates back to early 2015 and we have not changed its trade logic since, nor did we adjust any of the internal parameters. Standing strong in 2016/17 is remarkable.
So what’s the bottomline?
Our conclusion: It’s very likely you get the best performance if you trade Rocket the way it was designed to do: with out-of-the-box settings. Uninterrupted. And let Rocket do its thing.
We really do not see much reason to advise anyone to change any of Rocket’s default trade settings, except for the equity protection feature which might be customized according to the customer’s preference. And of course, if you feel that upcoming news might cause a havoc on GBPUSD, turn Rocket off. There’s no shame in being cautious. Remember that protecting your capital should be your #1 priority.