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
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
