How I trade (full process and concept)

[Arya Stark]

Hi everyone,

Thought I should share the process and concept of my trading. Reply with yours if you want.

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I trade 27 forex pairs - all majors and crosses except GBPNZD. Type: Quantitative swing. Two trades per day on average.

Position Lifecycle​

Signal: mixture of 4 custom-made technical indicators. Each based on different idea, has lots of parameters and its own timeframe. I don't know why their mixture works. Even LLMs couldn't realize. Seems like a type of mean reversion, not pure.

How I discovered it: I built about 10 indicators based on different ideas and looked for the best combination through optimization on large periods of lots of instruments - forex pairs, equities, commodities, crypto. Forex pairs showed the best result by far. I verified through WFA. It worked pretty well even without out-of-sample tests.

Exit: Fixed TP=20-50 pips, Dynamic Virtual SL based on the 4 indicators mentioned above, Hard SL=Very far, just for extra protection, never hit.

Average win = 28 pips, average loss = 51 pip. Win rate = 73%

Research​

Rolling every 2 months for each instrument.

Optimization: last 3 months. Around 1 million variants sorted by Recovery Factor and number of trades.

OOS: recent OOS**:** preceding 9 months, choice: RF>=2; Long OOS: 12 months before the recent OOS, choice: RF>=1.3, if lower no rejection but effects volume of trading.

Stress Tests: reject only if DD goes wild and doesn't recover.

Stability test: chosen setup with different TP and SL. Want to see positive RF on each variant. Must be no surprises like for example, tp20 = great, but tp50 = crazy losses

*This new algorithm was built by ChatGPT when it analyzed all the details. Up until recently I used a simpler version: Only one OOS: 3 months that precede the optimization, and no stress tests.

Risk Management​

My leverage: 1:30, Margin Stop: Margin Level = 50%

Through combining the backtests of all the instruments I saw which volume per balance I need to trade to keep safe distance from margin stop: it's 0.01 per $600. Factually, I've never got close even to the Margin Call (Margin Level = 100%).

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[fargana]

In my backtests high win rate with bigger average loss still works only when I cap daily drawdown and rotate settings slow. How do you keep 1 million variants from curve fit?

 

[Arya Stark]

In my backtests high win rate with bigger average loss still works only when I cap daily drawdown and rotate settings slow. How do you keep 1 million variants from curve fit?

I test out-of-sample. And those 1m variants are actually not too far from one another. The logic of my strategy is still inside each of them.

 

[Zerologic]

*This new algorithm was built by ChatGPT when it analyzed all the details. Up until recently I used a simpler version: Only one OOS: 3 months that precede the optimization, and no stress tests.

I often read posts from forex traders who use ChatGPT or other AI engines to build algorithms. AI makes it easier for traders to build their own algorithms, but testing is necessary to determine their performance.

 

[NathanielOlson]

In my backtests high win rate with bigger average loss still works only when I cap daily drawdown and rotate settings slow. How do you keep 1 million variants from curve fit?

That’s always the hard part. What’s helped me is being very strict with out-of-sample and walk-forward testing, and only keeping variants that stay profitable across different market regimes. I also reduce degrees of freedom as much as possible and focus on robustness (similar performance across ranges), not the absolute best backtest result.

 

[Arya Stark]

That’s always the hard part. What’s helped me is being very strict with out-of-sample and walk-forward testing, and only keeping variants that stay profitable across different market regimes. I also reduce degrees of freedom as much as possible and focus on robustness (similar performance across ranges), not the absolute best backtest result.

Sounds absolutely the right thing to do!

Post automatically merged: Feb 6, 2026

I often read posts from forex traders who use ChatGPT or other AI engines to build algorithms. AI makes it easier for traders to build their own algorithms, but testing is necessary to determine their performance.

What algorithms? I've never used AI to build my trading algorithms. AI only helps me to build my workflow algorithms.