Does anyone use a regression calculation for multiple entry strategies, either mean reversion or median type grids?
I don't want an EA discussion or anything to do with indicators, just help with "simple" math!
I'm working on something (read Bird Watching in Lion County for hints) and I want to calculate a multiple entry criteria with a max risk BUT with a decaying expontential regression at the end of that fat tail risk.
Hopefully this is clear but along the lines of this:
1. MAX risk and hard stop is 2% in total of all entries.
2. MAX number of entries is 4.
3. I determine the MAX negative excursion from 1st entry (lets say for this exercize 200 pips).
Easy right? This is the tricky part....
So we've established that the total risk of all 4 entries is 2%, that's it we close down at a loss.
Lets have a look at a weekly fib pivot chart with 38 as entry and 138 as final hard stop.
The 1st entry is the smallest lot size with a -200 pip stoploss (this is at 38 fib - 100% of stoploss distance)
The 2nd is slightly larger in lot size with a -154 pip stoploss (this is at 61 fib - 77% of stoploss distance)
The 3rd is slightly larger in lot size with a -120 pip stoploss (this is at 78 fib - 60% of stoploss distance)
The 4th is slightly larger in lot size with a -76 pip stoploss (this is at 100 fib - 38% of stoploss distance)
In summary we have 1 trade with 4 entries and a max% total stop loss, each subsequent entry is slightly larger in lot size with the 4th and final lot size the largest BUT when all four entries reach max stop that is calculated (in this example) at 2% risk.
I hope this makes sense to a maths wizz out there, as I've got the gear but no idea when it comes to mathematics.
Hopefully with help we can build a google sheets calculator that it is free to use by anyone for any type of trader that uses multiple entries, using a pip value = % stop to calculate lot sizes based on equity.
Please NO ea discussion or indi discussion - this to build a free money management template that can be used by anyone on any platform for free. I don't want to police this thread so please respect what I'm trying to create.
Thanks all!
I don't want an EA discussion or anything to do with indicators, just help with "simple" math!
I'm working on something (read Bird Watching in Lion County for hints) and I want to calculate a multiple entry criteria with a max risk BUT with a decaying expontential regression at the end of that fat tail risk.
Hopefully this is clear but along the lines of this:
1. MAX risk and hard stop is 2% in total of all entries.
2. MAX number of entries is 4.
3. I determine the MAX negative excursion from 1st entry (lets say for this exercize 200 pips).
Easy right? This is the tricky part....
So we've established that the total risk of all 4 entries is 2%, that's it we close down at a loss.
Lets have a look at a weekly fib pivot chart with 38 as entry and 138 as final hard stop.
The 1st entry is the smallest lot size with a -200 pip stoploss (this is at 38 fib - 100% of stoploss distance)
The 2nd is slightly larger in lot size with a -154 pip stoploss (this is at 61 fib - 77% of stoploss distance)
The 3rd is slightly larger in lot size with a -120 pip stoploss (this is at 78 fib - 60% of stoploss distance)
The 4th is slightly larger in lot size with a -76 pip stoploss (this is at 100 fib - 38% of stoploss distance)
In summary we have 1 trade with 4 entries and a max% total stop loss, each subsequent entry is slightly larger in lot size with the 4th and final lot size the largest BUT when all four entries reach max stop that is calculated (in this example) at 2% risk.
I hope this makes sense to a maths wizz out there, as I've got the gear but no idea when it comes to mathematics.
Hopefully with help we can build a google sheets calculator that it is free to use by anyone for any type of trader that uses multiple entries, using a pip value = % stop to calculate lot sizes based on equity.
Please NO ea discussion or indi discussion - this to build a free money management template that can be used by anyone on any platform for free. I don't want to police this thread so please respect what I'm trying to create.
Thanks all!