Be careful with PipDefender

If you are wondering about what happened in my experiment with PipDefender, well, it failed miserably. 20 pips winers traded irresponsibly, cheating with trades on gold to hide the huge drawdown on the ZuluTrade graphs. (Soon I will write about this big ZuluTrade problem…)
However, after the epic margin call that left me almost dry on AAAFx, I decided to try to use PipDefender to monitor reverse trades on ZuluTrade.
Some data on this signal:

  • Trades only GBPJPY, 3-4 times a day
  • Every trade gives a 15 pip loss
  • Every trade has a 91% chance to be losing
  • When it wins, it makes 120 pips.
In a perfect world, if I reverse it, I will get big profits!
In real life, instead there are three problems:
  • The spread on GBPJPY is 6 pips, so when you open a trade you will start at -6 pip (with AAAFx)
  • The minimum distance to place the stop loss is 14 pip (with AAAFx)
  • Inverting the values, the spread isn’t calculated
So, the disaster is only waiting to happen.
With PipDefender, in theory it’s possible to fix the problem, and for the first week it did a good job.
Around Thursday I noticed that the trades were closed with big delay (8-10 hours) compared to the master trade. Strange, I though, maybe it missed the take profit by one pip and it didn’t start.
Today I go to see the MetaTrader and I see the empty GBPJPY graph…
After a while I realize…. “hey, here shouldn’t be an EA running???”
So here is the log:

2012.06.06 21:59:37 PipDefender_client GBPJPY,M1: removed
2012.06.06 21:59:37 PipDefender_client GBPJPY,M1: uninit reason 1
2012.06.06 21:59:37 PipDefender_client GBPJPY,M1: deinitialized
2012.06.06 21:59:36 PipDefender_client GBPJPY,M1: Alert: PipDefender ABORT: the EA will be removed from the chart!
2012.06.06 21:59:36 PipDefender_client GBPJPY,M1: [X] ==>       Bridge.dll error while sending: GBPJPY pair info data (msg= 10302 GBPJPY 122.61500 122.64600 140 0 1339011320)
2012.06.06 21:59:36 PipDefender_client GBPJPY,M1: Alert: Bridge.dll error while sending: GBPJPY pair info data (msg= 10302 GBPJPY 122.61500 122.64600 140 0 1339011320)

So, PipDefender has a great power, but you have to be careful, otherwise you trades will be unwatched and can make a potential disaster.

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