[Z2] 10000$ Demo account blown in less than 1 Month

Posted By: x34v

[Z2] 10000$ Demo account blown in less than 1 Month - 06/23/21 10:03

Hello everyone,
on 05/27 I deployed an instance of Zorro running the Z2 system on a VPS.
In order to do that I followed the instructions available at https://zorro-trader.com/manual/en/zsystems.htm to configure the MT5 bridge and the suggested assets to trade.
The initial balance of the demo account was 10000 USD.
As of today, 06/23, the account can be considered by all means as blown up (balance is about 1300 USD).

This outcome does not match the backtests I did nor the backtests available at the Zorro website.
Can anyone please help me understand what happened and what I did wrong?

Thanks in advance,
Posted By: AndrewAMD

Re: [Z2] 10000$ Demo account blown in less than 1 Month - 06/23/21 10:26

1) Backtest performance does not imply future performance. The market always is full of surprises.
2) Most likely, your position sizing was too large. Adjust the settings.
Posted By: DdlV

Re: [Z2] 10000$ Demo account blown in less than 1 Month - 06/23/21 13:35

To expand a bit on @AndrewAMD's post:

1a) A strategy is based on a presumed inefficiency(s) in the market.
1b) A backtest is a statistical evaluation of the presence and attributes of that inefficiency(s) in the given dataset within the constraints of the settings applied.
1c) Since it's statistics, it GUARANTEES NOTHING - it's only probablilities, and all other outcomes also have some non-zero probability of occurring.
1d) Furthermore, when you transition to live trading, you're in a "whole new world" of data, which is also NOT GUARANTEED to be like your backtest dataset - surprise!
2a) And that's assuming that your live settings, including whatever the Broker you've chosen might be doing, AssetsFix.csv, commission, rolls, etc., match your backtest settings.
2b) Without more info regarding the backtest you did, CR values, Broker used, Capital slider setting, whether you did the 50% safety, printed CBI values, etc. it's pretty hard to give any insight.
3a) But at least you did the right thing and didn't go directly Live!
3b) And Zorro has good documentation and tools so that you can step-by-step evaluate what you did vs. the backtests and hopefully figure things out. But yes, it's a lot to learn & absorb...

Happy Trading!
Posted By: MatPed

Re: [Z2] 10000$ Demo account blown in less than 1 Month - 07/07/21 10:21

You did not mention the broker used. The most probable reason is that you have a wrong position sizing and/or capital settings. The second issue is that your broker has a different liquidity provider than the one used to train the z system. I found relevant difference of the same TS traded on two different brokers, but trained on the same data.
Ciao
Posted By: terrai

Re: [Z2] 10000$ Demo account blown in less than 1 Month - 11/16/21 07:59

I had similar experience in the past.
The main reason for me was wrong Assets file.
(resulting in wrong position sizing).

Be very careful with it.
Double check which assets file you are using (the one defined in accounts.csv, AssetsZ2.csv or other)
Double check/compare your Assets file with /log/Assets.csv (where you have the most for your broker figures). If different transfer the rows from assets.csv to your assets file.

Cheers
Anton
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