A Multi-Currency Moving-Average Trader’s Lessons from ATC 2012

Summary

In this interview, Mariusz Zarnowski discusses his development as an automated forex trader and his 2012 Automated Trading Championship system. He describes moving from single-currency Expert Advisors to multi-currency systems, with different moving-average variations at their core. His EA traded four currency pairs, selected based on backtest results and perceived diversification from low correlation among some pairs. He also expresses interest in neural networks and other adaptive methods.

The interview offers a candid account of the system’s risks and limitations. Zarnowski says the EA predetermined direction on three pairs, misjudged EURUSD, and was designed for larger price moves than the volatility delivered during the contest. He describes increasing trade volume after a loss to smooth the balance curve, an approach that can amplify exposure. Although the article reports a rapid recovery to a stated account level during the competition, it is a time-limited contest snapshot, not evidence of durable performance. He also recounts severe losses on real accounts, underscoring that backtest selection, diversification, and high returns do not remove drawdown risk.

Key ideas

• The trader’s contest system applied moving-average variations across four currency pairs.
• Pair selection was based on backtest results and an attempt to diversify exposure.
• The system’s trend design depended on price moves larger than those observed during part of the contest.
• The trader increased volume after losses, creating a money-management choice with significant risk.
• The interview’s performance snapshots do not establish long-term profitability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.