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-   -   MGH System (Martingale Grid & Hedging) (https://www.forexfactory.com/thread/497448-mgh-system-martingale-grid-hedging)

Kfx Aug 1, 2014 12:31pm | Post# 1

MGH System (Martingale Grid & Hedging)
 
3 Attachment(s)
Hi.

No big introduction, no stories about my trading or personal life, no long posts about subjective theories or techniques.

I just want to show you an easy system in which I'm working and I hope that with everyone's help, we can improve it.

We all know that grids and martingales are dangerous, but please abstain from making comments debating whether these techniques are good or bad and focus on the system.

You all are welcome and feel free to writing your suggestions or critical.

Basic example for entry criteria.

Just use a indicator that draw a 10 pips grid.

Buy: When price comes from above and touch a grid level (level 1)

TP: Next level (10 pips)

If the price drops 10 pips, add a buy (level 2) ... set all TPs at level 1

If the price drops 10 pips more, add a buy (level 3) ... set all TPs at level 1

Sell: When price comes from below and touch a grid level (level 1)

TP: Next level (10 pips).

If the price rises 10 pips, add a buy (level 2) ... set all TPs at level 1

If the price rises 10 pips more, add a buy (level 3) ... set all TPs at level 1

http://oi58.tinypic.com/25jz1h1.jpg

This is another example of "Basic entries" when our martingale and hedging are not necessary to use yet, only grids.

I think this time will be quite clear, I do not know how to simplify it more

http://oi61.tinypic.com/505p5g.jpg

That's the most easy situation.

Let see another easy situation, let's call it "Hedge x2"

Now we have our grid of sells on Level 4 so without close the sells ....

1. We will open only buys doubling the last lote.

2. If the price go against, we add up to 2 grid levels more with the same lote size.

3. We will close all buys and sells when we reach 100 pips or more.

http://oi62.tinypic.com/9t0gn9.jpg

Until now those are very easy situations.

Later we well see some more complicate.

In advance I will say that this system have a percent equity SL and a different equity TP target, depending on the hedge multiplier. The biggest the hedge multipler, the biggest the gain.

Let see now "Hedge x4"

1. Price reach the level 4 so we start with x2 buys and get some profit, but .....

2. The price has retraced to our x1 grid sells, so the TP for x1 trades is reached and now we have 3 x 2 trades in the air

3. To avoid a possible range, we will wait for the price moves one more level.

4. Then we will start with x4 sells until get our target. In case of a "Hedge x4" we need 250 pips or more to close all the trades.

http://oi58.tinypic.com/w7y7nt.jpg

I will show you now when the separation between opened grids is 30 pips or more. We will call to this example "Hedge x4 Inside Grid".

1. We have 2 opposite grids opened (3 x1 buys and 3 x2 sells). At this point some x2 sells have been closed already ( 5 sells x 2 = 100 pips )

2. The separation between the grid level 3 of opened buys and lgrid evel 3 of opened sells is 30 pips.

3. The price back up to the middle of the grids separation. In this case the middle would be 15 pips, so we consider the level closest to buys to start with x4 trades.

4. At some point the price reach or x1 buys TP and are closed.( 3 buys x 1 = 30 pips )

5. We still open x4 buys until get our 250 pips or more target.

http://oi61.tinypic.com/2edxmok.jpg

Here is the "Hedge x16 Inside Grid" example. I think the picture speak by itself.

1000 pips or more target for this example, by the way.


http://oi58.tinypic.com/2zqssn9.jpg

When we have an inside grid opened, we will wait for the outside grid to close, in this case the x8 buys, to open a new x32 grid.

This is the "Hedge x32 inside grid" .... 5.000+ pips DD.

Maybe it would be a good idea to start with the next level 10 pips away fom inside grid get TP, and not wait for a side level to get TP.

http://oi58.tinypic.com/2mg5y0y.jpg

This is a modification of the system by Paracelsus (FxMasterGuru) ...

http://www.forexfactory.com/showthre...99#post7662999

Some "brainstorming" ideas for further experimentations:

1. First batch entry is in "trend direction":

Buy: When price comes from BELOW and touch a grid level (level 1)
Sell: When price comes from ABOVE and touch a grid level (level 1)

Reasoning: To keep "friendship with the trend" starting from Level1 of Original Batch. (All further "H" Level entries are in "trend direction", so why not first one, too?)

2. Not moving original TP levels when Level2 and Level3 trades are activated.

TP: Next level (10 pips)
If the price drops 10 pips, add a buy (level 2) ... keep TP
If the price drops 10 pips more, add a buy (level 3) ... keep TP

Reasoning: Just by keeping the original TP, we can DOUBLE the profit of each Original Batch (after Level3 entry).

For example:
Moving TP to Level1: Level1+Level2+Level3 PT = 0 + 10 + 20 = +30 pips
Keeping original TP: Level1+Level2+Level3 PT = 10 + 20 + 30= +60 pips

http://www.forexfactory.com/showthre...50#post7699050

Also, one more idea: Taking profits and reentering with the same lot size at each grid-step burns up lots of spreads and commissions, which add up. To avoid "feeding the beasts" (i.e. the brokers) excessively repeated reentries, I suggest NOT TO CLOSE the very first trades of each smaller batches, but letting them ride and adding the 2nd and 3rd steps after a 10 pips (grid size) retracement as usual.

It gives the same exact equity gain/loss at each level as the original strategy but without closing and opening trades at each level. Considering a 1.2 pips ECN expense at each grid step, it can mean 12 pips saving on a 100 pip move, which is about 12% cost saving. Not insignificant. Also, as "butterfly effect" happens also in trading, this small, but significant cost saving can mean the difference between being able close a "basket" before a major market turn and before a higher Hedge level would kick in.

Attached the EA's by GoldenEA

mghEAv1.0.mq4
MGHEAv2.0.mq4
OrderSendReliable.mq4

Kfx Aug 1, 2014 12:31pm | Post# 2

Basic example for entry criteria.

Just use a indicator that draw a 10 pips grid.

Buy: When price comes from above and touch a grid level (level 1)

TP: Next level (10 pips)

If the price drops 10 pips, add a buy (level 2) ... set all TPs at level 1

If the price drops 10 pips more, add a buy (level 3) ... set all TPs at level 1

Sell: When price comes from below and touch a grid level (level 1)

TP: Next level (10 pips).

If the price rises 10 pips, add a buy (level 2) ... set all TPs at level 1

If the price rises 10 pips more, add a buy (level 3) ... set all TPs at level 1

http://oi58.tinypic.com/25jz1h1.jpg

That's the most easy situation. In following posts we will see what happens if the price drops or rises to Level 4

ronichimo Aug 1, 2014 12:39pm | Post# 3

Hi,

Hope we`ll find the right strategy,

ronichimo

Nepul Aug 1, 2014 12:44pm | Post# 4

and so? what is this system?

24hrs Aug 1, 2014 12:46pm | Post# 5

Hi. No big introduction, no stories about my trading or personal life, no long posts about subjective theories or techniques. I just want to show you an easy system in which I'm working and I hope that with everyone's help, we can improve it. We all know that grids and martingales are dangerous, but please abstain from making comments debating whether these techniques are good or bad and focus on the system. You all are welcome and feel free to writing your suggestions or critical.
U looks old member on ff... so expecting some good strategy from you. Not like those other having color full indicators with never ending modifications.

Kfx Aug 1, 2014 1:04pm | Post# 6

Hi, Hope we`ll find the right strategy, ronichimo
Hi ronichimo, welcome to the thread. I hope so too.

Let's work together and have fun.

gridmaster Aug 1, 2014 1:07pm | Post# 7

how to change tp with an ea when next pending order tigger

Kfx Aug 1, 2014 1:08pm | Post# 8

{quote} U looks old member on ff... so expecting some good strategy from you. Not like those other having color full indicators with never ending modifications.
Hi 24hrs, welcome to the thread.

This is a WIP system with big possibilities to improve it.

Let see what happen.

No indis by the way, just one to trace the gid levels if needed.

Nepul Aug 1, 2014 1:11pm | Post# 9

Basic example for entry criteria. Just use a indicator that draw a 10 pips grid. Buy: When price comes from above and touch a grid level (level 1) TP: Next level (10 pips) If the price drops 10 pips, add a buy (level 2) ... set all TPs at level 1 If the price drops 10 pips more, add a buy (level 3) ... set all TPs at level 1 Sell: When price comes from below and touch a grid level (level 1) TP: Next level (10 pips). If the price rises 10 pips, add a buy (level 2) ... set all TPs at level 1 If the price rises 10 pips more, add a buy (level 3) ......
that's all your strategy?? or do you have something more?
For sure with this kind of grid you account will blow in less of 1 month....firstly would be better 30 or 40 pips interval, but it doesn't work for the same.
i like a lot the idea of the grid, by the way till now i didn't find something who really work well.
i had an idea for a grid , soon i will show you...

Kfx Aug 1, 2014 1:14pm | Post# 10

how to change tp with an ea when next pending order tigger
Hi gridmaster, welcome to the thread.

Definitely, to work with this system it would be necessary to make an EA because it would be running constantly 24h, but for now I prefer to orient the thread just to design a good logic.

Kfx Aug 1, 2014 1:20pm | Post# 11

{quote} that's all your strategy?? or do you have something more? For sure with this kind of grid you account will blow in less of 1 month....firstly would be better 30 or 40 pips interval, but it doesn't work for the same. i like a lot the idea of the grid, by the way till now i didn't find something who really work well. i had an idea for a grid , soon i will show you...
Hi Nepul, welcome to the thread.

As I have said before "That's the most easy situation. In following posts we will see what happens if the price drops or rises to Level 4". So be patient.

gridmaster Aug 1, 2014 1:24pm | Post# 12

{quote} Hi gridmaster, welcome to the thread. Definitely, to work with this system it would be necessary to make an EA because it would be running constantly 24h, but for now I prefer to orient the thread just to design a good logic.
i know an cheep vps 4 $ to 10 $ / per month vps.

gridmaster Aug 1, 2014 1:36pm | Post# 13

Basic example for entry criteria. Just use a indicator that draw a 10 pips grid. Buy: When price comes from above and touch a grid level (level 1) TP: Next level (10 pips) If the price drops 10 pips, add a buy (level 2) ... set all TPs at level 1 If the price drops 10 pips more, add a buy (level 3) ... set all TPs at level 1 Sell: When price comes from below and touch a grid level (level 1) TP: Next level (10 pips). If the price rises 10 pips, add a buy (level 2) ... set all TPs at level 1 If the price rises 10 pips more, add a buy (level 3) ......
i tell u a simple stategy having little risk but if u make an ea which change tp or sl . then no risk. in this picher u price range is 1.28900 to 1.28500 u just open buy and sell order on each level and same. supoose u chose 4 level means u can put 4 buy and 4 sell between 1.28900 to 1.28500 . that is simple . when u think the price moov one side enough . then put breackeven on winning trade. now price slowly slowly move reverse ur winning trade breack on breck even and loosing trade become winning. .

chamane Aug 1, 2014 1:38pm | Post# 14

I am risking saying that this system is quite a lot like the "Grid Trend Multiplier" of Expert4X. They sell an EA on the strategy, but I am trading it manually on a micro account. Interesting, but you must be very careful with your money management, more than with conventional systems.

Nepul Aug 1, 2014 1:48pm | Post# 15

{quote} i tell u a simple stategy having little risk but if u make an ea which change tp or sl . then no risk. in this picher u price range is 1.28900 to 1.28500 u just open buy and sell order on each level and same. supoose u chose 4 level means u can put 4 buy and 4 sell between 1.28900 to 1.28500 . that is simple . when u think the price moov one side enough . then put breackeven on winning trade. now price slowly slowly move reverse ur winning trade breack on breck even and loosing trade become winning. .

maybe this is what you're talking...it's work in range, but not in trend, but maybe with your modification abour the breakeven something can change...

Inserted Video

Kfx Aug 1, 2014 1:51pm | Post# 16

Let see another easy situation, let's call it "Hedge x2"

Now we have our grid of sells on Level 4 so without close the sells ....

1. We will open only buys doubling the last lote.

2. If the price go against, we add up to 2 grid levels more with the same lote size.

3. We will close all buys and sells when we reach 100 pips or more.

http://oi62.tinypic.com/9t0gn9.jpg

Until now those are very easy situations.

Later we well see some more complicate.

In advance I will say that this system have a percent equity SL and a different equity TP target, depending on the hedge multiplier. The biggest the hedge multipler, the biggest the gain.

Hope you guys understand my words, because english isn't my main language.

Kfx Aug 1, 2014 2:04pm | Post# 17

gridmaster, chamane, Nepul, thanks for your posts, but this is not my strategy.

Let's focus in this project to not detract the thread.

Thanks again.

Kfx Aug 1, 2014 3:10pm | Post# 18

Let see now "Hedge x4"

1. Price reach the level 4 so we start with x2 buys and get some profit, but .....

2. The price has retraced to our x1 grid sells, so the TP for x1 trades is reached and now we have 3 x 2 trades in the air

3. To avoid a possible range, we will wait for the price moves one more level.

4. Then we will start with x4 sells until get our target. In case of a "Hedge x4" we need 250 pips or more to close all the trades.

http://oi58.tinypic.com/w7y7nt.jpg

I do not know if you guys are understanding or are interested on this system, so let me know you opinion and I will post more situations tomorrow.

Thanks to all.

Nepul Aug 1, 2014 3:17pm | Post# 19

thanks you to share your strategy...
by the way i dont know others people, but the way you 're explaining it i dont understand nothing....

Kfx Aug 1, 2014 3:33pm | Post# 20

thanks you to share your strategy... by the way i dont know others people, but the way you 're explaining it i dont understand nothing....
Thanks Nepul.

Let me know what are you questions, I will try to answer you.

Nepul Aug 1, 2014 3:37pm | Post# 21

ok let me know if i understood well...
if you're buying when price reach 4 levels you will sell with double size, same for 5 levels, until reach the profit point.(you will have 3 buy, and 4 sell)
if price go again up you will add buy to 3-2-1 levels for the same first size...until it reach the profit point (as you said > 250)
right?

Kfx Aug 1, 2014 3:53pm | Post# 22

ok let me know if i understood well... if you're buying when price reach 4 levels you will sell with double size, same for 5 levels, until reach the profit point.(you will have 3 buy, and 4 sell) if price go again up you will add buy to 3-2-1 levels for the same first size...until it reach the profit point (as you said > 250) right?
You mean in the "Hedge x4" example, right?. I'll try to explain you.

1. First we have a 3 sells level grid with (x1 lot).

2. the price reach level 4, so we start to buy (x2 lot). In this example we get 2 buys (x2 lot) profit and them when the price goes down we have 3 buys(x2 lot) in the air.

3. The price back to the first grid, so we close this grid (x1 grid). At this point we have 3 buys (x2)

4, We will wait one more level to open new sells (x4 lot) ... until reach our target

In those examples we never have more than 3 sells and 3 buys opened at the same time.

Nepul Aug 1, 2014 3:59pm | Post# 23

{quote} You mean in the "Hedge x4" example, right?. I'll try to explain you. 1. First we have a 3 sells level grid with (x1 lot). 2. the price reach level 4, so we start to buy (x2 lot). In this example we get 2 buys (x2 lot) profit and them when the price goes down we have 3 buys(x2 lot) in the air. 3. The price back to the first grid, so we close this grid (x1 grid). At this point we have 3 buys (x2) 4, We will wait one more level to open new sells (x4 lot) ... until reach our target In those examples we never have more than 3 sells and 3 buys...

okok,this time i think understood...
only one thing, when you close first grid, cause the second is appearing, you will close it in loss?
is the first time i hear this kind of grid....did you backtest manually or through an ea?

Kfx Aug 1, 2014 4:06pm | Post# 24

{quote} okok,this time i think understood... only one thing, when you close first grid, cause the second is appearing, you will close it in loss? is the first time i hear this kind of grid....did you backtest manually or through an ea?
No, the first grid is closed when the TP is reached (when the price back down). You only close with losses when our equity has reached our risk %.

This is a WOP and I have backtested manually just some months, but looks nice.

Nepul Aug 1, 2014 4:12pm | Post# 25

i will backtest with the forex simulator

srt Aug 1, 2014 5:31pm | Post# 26

Interesting Kfx.

I'll do some calculations this weekend.
I'll use a bit bigger grid size though to reduce spread costs.

Thanks.

spyderman Aug 1, 2014 5:39pm | Post# 27

Kfx,

So on your 2x and 4x you keep your 1x's open until you get the 100 or 250 pips from the 2x's or 4x's, then close the 1x's, is that correct.
But you close the 2x's and 4x's according to base rules along the way. You're just keeping track of the pips gained so you know when to close the 1x's?

Another question...after hitting TP, let's say at 1.3400 do you immediately use that for your next buy/sell or wait to you hit 1.3410 or 1.3490?

Kfx Aug 1, 2014 6:25pm | Post# 28

Interesting Kfx. I'll do some calculations this weekend. I'll use a bit bigger grid size though to reduce spread costs. Thanks.
Hi str, Welcome to the thread.

I hope you find something interesting.

Kfx Aug 1, 2014 6:31pm | Post# 29

Kfx, So on your 2x and 4x you keep your 1x's open until you get the 100 or 250 pips from the 2x's or 4x's, then close the 1x's, is that correct. But you close the 2x's and 4x's according to base rules along the way. You're just keeping track of the pips gained so you know when to close the 1x's? Another question...after hitting TP, let's say at 1.3400 do you immediately use that for your next buy/sell or wait to you hit 1.3410 or 1.3490?
Hi spyderman, welcome to the thread.

On 2x I keep open the 1x's until get 100 pips or more, but on 4x close the 1x's by TP because the price go back.

Yes to your second question, I inmediatly open another trade when TP is reached.

spyderman Aug 1, 2014 6:43pm | Post# 30

{quote} Hi spyderman, welcome to the thread. On 2x I keep open the 1x's until get 100 pips or more, but on 4x close the 1x's by TP because the price go back. Yes to your second question, I inmediatly open another trade when TP is reached.

So to be clear, when you say 100 pips or more, that is the total of all your closed 2x trades taken since the opening of the three 1x's

francisakz Aug 1, 2014 6:46pm | Post# 31

{quote} U looks old member on ff... so expecting some good strategy from you. Not like those other having color full indicators with never ending modifications.
Hehhehehehhehehehehe, well said man, I wonder why dey didn't name it colour factory. Seriously, I don't mean to be Negative, but still Havnt seen a system that is profitable in all market conditions. Wish u well in ur New Thread, I will be keeping an eye

Kfx Aug 1, 2014 6:51pm | Post# 32

{quote} So to be clear, when you say 100 pips or more, that is the total of all your closed 2x trades taken since the opening of the three 1x's
Yes, all complete trade group 1x's + 2x's.

In the example .... 1x's = -210 pips and 2x's = +320 ... Total = 110 pips

spyderman Aug 1, 2014 6:52pm | Post# 33

{quote} Yes, all complete trade group 1x's + 2x's. In the example .... 1x's = -210 pips and 2x's = +320 ... Total = 110 pips

Kfx Aug 1, 2014 6:53pm | Post# 34

{quote} Hehhehehehhehehehehe, well said man, I wonder why dey didn't name it colour factory. Seriously, I don't mean to be Negative, but still Havnt seen a system that is profitable in all market conditions. Wish u well in ur New Thread, I will be keeping an eye
Hi francisakz, welcome to the thread.

I hope too we can find the H.G. or semi H.G. hahaha.

spyderman Aug 1, 2014 7:16pm | Post# 35

1 Attachment(s)
So what about a situation like so where your 2x's go against and you need to enter a 4x before you get to the 1x TP

Click to Enlarge

Name: EURCHF!H1.png
Size: 64 KB

xlcharly Aug 1, 2014 7:22pm | Post# 36

Basic example for entry criteria. Just use a indicator that draw a 10 pips grid. Buy: When price comes from above and touch a grid level (level 1) TP: Next level (10 pips) If the price drops 10 pips, add a buy (level 2) ... set all TPs at level 1 If the price drops 10 pips more, add a buy (level 3) ... set all TPs at level 1 Sell: When price comes from below and touch a grid level (level 1) TP: Next level (10 pips). If the price rises 10 pips, add a buy (level 2) ... set all TPs at level 1 If the price rises 10 pips more, add a buy (level 3) ......
Hi Kfx. I'm trying to understand your strategy.
Sell case: "When price comes from below and touch a grid level (level 1) TP: Next level (10 pips). If the price rises 10 pips, add a buy (level 2)"....second trade buy or sell? So third trade: buy or sell?
Thks.

Kfx Aug 1, 2014 7:28pm | Post# 37

So what about a situation like so where your 2x's go against and you need to enter a 4x before you get to the 1x TP {image}
Nice spyderman.

You have to wait until 3 opened 1x's closes on TP @1.21900

Then, you open new 4x's sells if the price moves down 1 more level (@1.21800)

Anyway ... I have to post more examples because the rules change when the separation bettwen grids is 30 or bigger. This requires putting intermediate levels. It is somewhat complicated to explain but I will try tomorrow.

spyderman Aug 1, 2014 7:42pm | Post# 38

{quote} Anyway ... I have to post more examples because the rules change when the separation bettwen grids is 30 or bigger. This requires putting intermediate levels. It is somewhat complicated to explain but I will try tomorrow.

Hmm...very interesting. I'll definitely watch for more this weekend.

gridmaster Aug 1, 2014 11:53pm | Post# 39

anouther stategy any one make this calculere its totel lot sixe on excel as i did not know about use of excel . as in unnormal situtation price move 10000 points. so calculate the totel lot size according to ur account balance is required. open buylimit sell limit sellstop buy stop on same level and same lot in incresing. means 0.01,0.02,0.03 ...........the totel lot means = 0.01+0.02+..........up to 10000 point. also ur level means grid size =1000 is u did not use vps . when price move a lot of in one direction here u stategy. if ur totel lot can hendel anouther 10000 poits then close profit lot and wait price move back . or put breack even on winning lot.
this will make a prymid. but i can not use the excel so did not know the totel lot according to balance

thuythuyyen Aug 2, 2014 4:37am | Post# 40

http://www.myfxbook.com/members/thuythuyyen/pte/982295

This one Im trying the Grid+heging concept too .


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