Disliked{quote} I am unable to close down at the max P/L. Here the peak P/L was +$12.6k, while the peak DD was -$3.7k. I closed it all at +$8.1k. Here the range strategy was useless and could not contribute a dime to the trend one, but still, everything ends up in profit. That is how important the trend strategy is. That is why one should wrap around everything around it...Ignored
MZ,
Thank you for sharing. Looks like you have found something that works for your style of trading.
I am glad I am not the only one who is not able to see into the future and close trades down at Max P/L - at least we know there are two of us who do this.
As to your trading style/system as shown by the EA's you are running, I am curious as to know if you have looked at
1) which one of the two systems (trend or range) generates the most profit per avg. trade per instrument (Forex Pair)
2) which one of these two generates the highest drawdowns per avg trade per instrument
3) what must the market do for the system to be most profitable
4) what market conditions cause this system to suffer its highest drawdown
I like to see you are delving into the concept of creating a 'hedge' between the dynamics of a ranging market vs a trending market. If we were to know in advance which system is applicable on any given time period, we would not need such things, but since none of us can know in advance what the market will do, it seems like you are trying to come up with a solution (by wrapping one system around another) to minimize your losses (effectively hedging) for the various market conditions.
Many of the grid systems I have seen - seem to suffer if they are not tuned to the current market condition for the instrument they are being traded on (and maybe this gives it the 'edge', rather than the actual grid). Meaning that if one were to take a look at the ATR or ADR (or something similar) - and keep their grid at realistic levels (like 10% of ADR over x time period) AND combine this with an exit (like a profit target of .x ADR) they appear to perform better, rather than just keeping the grid level and profit targets static across a variety of instruments. Your comments are welcome as to your experience in this aspect.
Also, I am curious as to get your opinion as to how you believe your discretionary style of turning one system on or exiting 'here' rather than 'there', impacts the profitability of your trading system.
Thank you for your contribution....