DislikedLet's talk about losing basket of trades. I am doing backtests on the ME / ME strategy with a TMS entry taking into consideration the market conditions (Boss, BigBoss). (I'm quite good at coding) Distance between MEs = 0.5ATR100 + MACD (5.7.7) cross 5M Stop Loss = 2ATR100 from the average entry price Lot size of every trade: 0.001 In the strategy, the opening of a basket of trades does not exclude the possibility of opening more basket of trades at the same time. In this way I can check all the entry signals. Some basketball hit the stop loss sooner...Ignored
When you trade one currency pair, you should expect 3 to 4 losing baskets in one year. But those winning baskets has Expectancy above 2.5.
What is important is that you need to trade 5 pairs at the same time and not just look at one pair.
You need to look at the results in a much longer term 1 to 3 years.
When I look at your 2 charts posted, I cannot figure out what was your trade plan and what the market conditions were and how you determine to buy or to sell. If the market was ranging, you need to know the maximum range - high to low. With the range high-low, you will see the depth of the retracement which can cause a lot of damage when you trade with MEME and the cut loss can be quite large when the account size is small and trading with the smallest lot 0.01 lot.
What is with the MACD (5,7,7)?
If you want to substitute the TDI with MACD, one member has shared his MACD(2,13,7) which replicates the TDI and it is realtime and no issues with repainting.
If you trade on H4 and use ATR 100 on H4, this is not what I use. I use ADR-100 days.
You should avoid opening new basket when there is a basket which is not in profit. In some situations when the retracement goes deeper than we see on our trade plan chart, you can close the oldest ME position and open a new position in the same basket but always keep the maximum number of open positions to 5 per basket. This is basic rule when you use 0.5ADR for the ME order distance. You can open more positions in one basket but you will risk more money.
If you use Big E entry method on H4, remember that he would exit his trade when price moves forward then pulls back 15 to 20 pips. Follow this rule.
But when the price move against your H4 entry immediately after your entry and there is no chance for exit, your either take the loss with your initial SL orr you can consider to do add the next positions as ME/ME trading and let the market decide.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
4
)
?
)