Crimson Lotus Dragon, Eve of the Challenge — Three Things Changed from the Mechanism Explanation
Recently, we delivered an article explaining the mechanism of the new EA “Crimson Dragon” to be used in the 1 million to 100 million yen challenge. In preparation for Monday (Sept 7), several adjustments were made in the past few days. Today I summarize those changes as the final pre-start report.
- Added two new safety features (spread filter, drawdown emergency stop)
- After settlement on the weekend, skip new entries until the next week begins
- Separated buy and sell price ranges from a single shared setting into two independent settings
- refreshed the on-screen panel so status is visible at a glance
- Conducted a simple backtest before deploying real funds
First is the spread filter. As long as the current spread exceeds a certain upper limit, new entries and adding to existing buys/sells are skipped. This is to avoid entering during times when spreads suddenly widen due to brokers or time zones.
Second is the drawdown emergency stop. If the unrealized loss as a percentage of account balance exceeds a certain level, an emergency brake prevents adding new positions. This prevents blindly increasing positions when the market moves against expectations.
Like the safety valve introduced in the previous article, both of these are simply “stop increasing new positions.” They do not affect existing positions’ stop losses or breakevens.
In the previous article, we introduced a mechanism where if the price turns positive in late Friday, we settle before the weekend. This time, we added a tweak: if that settlement actually triggers, skip new entries until the next week begins.
Even if you reorganize positions to avoid weekend gaps or swaps, piling in new entries immediately after would lessen the meaning of the settlement. We designed it so that after a quiet period across Saturday-Sunday, Monday’s market begins anew.
In the previous article, I explained that the spacing for buying more and selling more was determined by a single ATR multiplier. Now it’s split into separate multipliers for buying and selling.
Gold’s price moves do not always accelerate the same in up and down directions. By allowing separate intervals for buys and sells, future testing can more easily fine-tune, such as “rising prices gradually, falling prices track more quickly.” The ATR period remains the same for both buy and sell as before.
The panel displayed on the chart has been redesigned with a dark background and gold/crimson accents. In addition to the number of buy and sell positions and their average entry prices, unrealized P/L and account balance are now displayed directly under the header.
A black border around the outer edge ensures the panel remains clearly visible against any chart background. This is to convey at a glance to viewers watching YouTube Live what the current state is.
In the previous article I stated that before deploying real funds, I would perform a functionality check and simple validation on the MT5 live platform. In the past few days I carried out that validation, focusing on Gold’s 5-minute chart and the period so far this year, confirming the overall behavior in MT5 Strategy Tester. Based on those observed trends, I determined final preset values including the buy/sell price ranges introduced above.
However, this is a basic check to ensure “no bugs and general behavior,” not a proof of long-term track record. For Crimson Dragon to have a true track record, the real accumulation begins on Monday.
The mechanism was explained in the previous article, and the changes in this article. Now it’s time to deploy to the market and show you the results as they are. I will honestly report both good and not-so-good results here.
※This article is intended to provide information and is not investment solicitation. The performance results shown are past results and do not guarantee future profits. FX and CFD trading involve risk. Please make investment decisions at your own responsibility.