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Mathematical hedging strategy without a stop loss

  • Post #1
  • Quote
  • First Post: Apr 10, 2020 6:39am Apr 10, 2020 6:39am
Dear traders, i hope all of you will discuss my new strategy and check it carefully..
I open a long and short trade at the same currency at the same time without looking at the charts... It does not really matter.
Each trade has a 50 pips "Take profit" and 100 pips "Stop loss" with 20 pips "Trailing stop" for each one.
After the two trades are closed i start from the beginning and so on...
Math says that the possibility of winning using this strategy is much bigger than losing...
Please share your point of view.
Best regards
When to start "Trailing stop" ?
Placing two trades at the same time, without knowing slightly where the pair is heading to sounds scary.
Anyway, I wish you success in your thread
Quoting Lest
When to start "Trailing stop" ?
trailing stop is 20 pips...It means after the price goes up by 20 pips for the long trade "for example", the TP moves to break even level
Quoting Ican2020
Placing two trades at the same time, without knowing slightly where the pair is heading to sounds scary. Anyway, I wish you success in your thread
Please try it on a paper and check carefully.. Every trade has TP,SL and a trailing stop. Check the possibilities in maths.
Thanks
Quoting shadikalaji
Each trade has a 50 pips "Take profit" and 100 pips "Stop loss" with 20 pips "Trailing stop" for each one
It won't work. With 50 pips TP you lose 50 pips. It does not make sense.
Wanna succeed? Never Give Up.
Quoting shadikalaji
{quote} trailing stop is 20 pips...It means after the price goes up by 20 pips for the long trade "for example", the TP moves to break even level
That's suddenly getting pretty tight considering the initial SL of 100 pips.

Not sure what kind of math is making this look promising.

Anyhow I would say it is quite easy to automate and (back)test this strategy extensively considering its simplicity.
Quoting fxhumility
{quote} It won't work. With 50 pips TP you lose 50 pips. It does not make sense.
Not that easy...Please rethink again
Quoting kennerU
{quote} That's suddenly getting pretty tight considering the initial SL of 100 pips. Not sure what kind of math is making this look promising. Anyhow I would say it is quite easy to automate and (back)test this strategy extensively considering its simplicity.
Can you automate and back-test it? This will be very kind of you.
Thanks
I think personally you may have to get an EA developed and back test this as it is a lot easier to see with graphs. But I know what you mean it isn't simple with doing it manually as you won't get the same price if selling then buying.
Quoting shadikalaji
{quote} trailing stop is 20 pips...It means after the price goes up by 20 pips for the long trade "for example", the TP moves to break even level
TP moves to break even level ? You meant SL moves to BE ...
Quoting theunkown
I think personally you may have to get an EA developed and back test this as it is a lot easier to see with graphs. But I know what you mean it isn't simple with doing it manually as you won't get the same price if selling then buying.
Dear trader, do you know anyone who can do it?
It is very important to test the history automatically.
Thanks
Quoting Lest
{quote} TP moves to break even level ? You meant SL moves to BE ...
Sorry, i mean SL moves to BE using trailing stop.
Thanks
  • Post #14
  • Quote
  • Edited 9:53am Apr 10, 2020 9:39am | Edited 9:53am
Quoting shadikalaji
{quote} Dear trader, do you know anyone who can do it? It is very important to test the history automatically. Thanks
checked countless times, here's the EA
Attached File(s)
File Type: ex4 MakeGrid193BE_b.ex4   43 KB | 511 downloads
File Type: ex4 MakeGrid193.ex4   38 KB | 425 downloads
File Type: ex4 MakeGrid193_Eq_Trail.ex4   20 KB | 423 downloads
Quoting shadikalaji
{quote} Dear trader, do you know anyone who can do it? It is very important to test the history automatically. Thanks

You might want to go to MQL5 developers freelancers they will do it at a cost. But when you do do it make sure you put everything down you want it will cost more to add and takeaway. If you are doing this I would go to a simulator and test it out then if it works you can get a EA Programmed
Quoting Breza
{quote} checked countless times, here's the EA {file} {file} {file}
Hello everyone,
Please share your back testing results
  • Post #17
  • Quote
  • Edited 10:43am Apr 10, 2020 10:28am | Edited 10:43am
Quoting shadikalaji
{quote} Hello everyone, Please share your back testing results
EU
date 1-1.2019.-1-1-2020
size 0.01
grid=50
TP 49 spread 1
SL100
Trail 20
filters- false

The same, but with BE +1 after 20 pips, up is the trail after 20 pips
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Grid.PNG Size: 37 KB
Click to Enlarge Name: Grid.PNG Size: 37 KB
1) If buy trade, with trail 20pip stop. The minimum profit is
70pips. The other sell trade also make minimum 70pips.
Profit could be higher depending on price movement.

2) after buy trade make 70 pip minimum profit. The price reversal and continue to up and hit 100 pip stoploss.
Now you lost 30 pip and spread.

3) buy go up to sell stop loss at 100 pip and reversal at 20 pip. Your buy gain 80 but overall loss 20 pips.

Don't spend too much time..
Quoting shadikalaji
Dear traders, i hope all of you will discuss my new strategy and check it carefully.. I open a long and short trade at the same currency at the same time without looking at the charts... It does not really matter. Each trade has a 50 pips "Take profit" and 100 pips "Stop loss" with 20 pips "Trailing stop" for each one. After the two trades are closed i start from the beginning and so on... Math says that the possibility of winning using this strategy is much bigger than losing... Please share your point of view. Best regards

May I ask a serious question? Why in the world would you want to do this, when it will mathematically reveal that you would not make any profit at all?
Threesome Daddy
If you need it automated, give me a shout. I can connect Matlab to Dukas API through eclipse (java)
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