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position-sizing/pyramiding strategies to decrease risk?

  • #21
  • Mar 7, 2018 8:56am Mar 7, 2018 8:56am
Kelly has a FAT ass, yugghhh.
  • #22
  • Mar 7, 2018 10:02am Mar 7, 2018 10:02am
Quoting abokwaik
{quote} {quote} Few notes on the 7 scenarios above: Scenario (1): If TP1 is hit, and price retraces up to entry point, another order is opened at old open price, and same SL/TP for 1st position. Same thing with TP2. The cycle ends once TP3/SL3 is hit. Scenario (2): 2nd position is opened only of 1st position hit SL, while 3rd position is opened only of 2nd position hit SL. Total loss for teh cycle if all 3 positions hit SL is 3. The image is not scaled properly, but if any position hit TP, total net profit for the cycle should be 3. The cycle ends...
I wouldn't mind testing too...
R:R "Percentage Focus"
  • #23
  • Mar 7, 2018 1:16pm Mar 7, 2018 1:16pm
Quoting MoneyZilla
Hidden
This is offensive and should not be here. This trader who ever they are should be severely reprimanded for porn on your site.
My report for cleanup.
  • #24
  • Mar 7, 2018 1:18pm Mar 7, 2018 1:18pm
Quoting nigpig
{quote} This is offensive and should not be here. This trader who ever they are should be severely reprimanded for porn on your site. My report for cleanup.
Whats wrong with you?!? This is a joke! No porn either! The picture is NOT pornographic imho...
Maadik Hugiis. IQ 69.
  • #25
  • Mar 7, 2018 1:21pm Mar 7, 2018 1:21pm
What has it got to do with trading. Would you show a naked man in that pose. Man or women, this is not trading but insulting.
  • #26
  • Mar 7, 2018 1:38pm Mar 7, 2018 1:38pm
need review of the backtest of this EA
https://www.forexfactory.com/showthr...3#post10850003
  • #27
  • Mar 7, 2018 2:03pm Mar 7, 2018 2:03pm
Quoting bigboss12
need review of the backtest of this EA https://www.forexfactory.com/showthr...3#post10850003
It's obviously a martingale EA. You would think you found a good set that has worked in the past and has not blown the account. But the past is not the future and what has worked in the past will probably not work in the future. Honestly, it's worthless.
Don't give up on your dreams. Keep sleeping.
  • #28
  • Mar 7, 2018 3:30pm Mar 7, 2018 3:30pm
Quoting iamsovereign
{quote} Hay man -- I think many would find your name (nigpig) very offensive--- I personally could not give a fuck
Im not sure what you mean please explain?
  • #29
  • Mar 8, 2018 5:16am Mar 8, 2018 5:16am
Quoting Artcool
{quote} It's obviously a martingale EA. You would think you found a good set that has worked in the past and has not blown the account. But the past is not the future and what has worked in the past will probably not work in the future. Honestly, it's worthless.
Thanks for your advice, and honestly i know more about all you are saying as well, but the fact is this is grid and martingale EA but different from the general EA. The algorithm used is very different, but thanks
  • #30
  • Mar 8, 2018 11:10am Mar 8, 2018 11:10am
Quoting abokwaik
Which one would you prefer ? {image} {image} {image} {image} {image}
I prefer #5, all positions to have same SL, and TP, but different entry prices.

however; instead of same SL/TP; I prefer to exit on technical levels, or the same rule used or entry
  • #31
  • Mar 8, 2018 11:21am Mar 8, 2018 11:21am
if would want to pyramid, i would vote for #6.
there is always, always another trade!!
  • #32
  • Mar 8, 2018 11:25am Mar 8, 2018 11:25am
Quoting Artcool
{quote} It's obviously a martingale EA. You would think you found a good set that has worked in the past and has not blown the account. But the past is not the future and what has worked in the past will probably not work in the future. Honestly, it's worthless.
Martingale is strickly money management based corrcorreect?
  • #33
  • Mar 8, 2018 11:25am Mar 8, 2018 11:25am
Quoting alphadude
{quote} ... however; instead of same SL/TP; I prefer to exit on technical levels, or the same rule used or entry
Sure. This is not a grid. Entries, stops and targets are all on technical levels.
No guts, no glory
  • #34
  • Mar 8, 2018 11:33am Mar 8, 2018 11:33am
Quoting MoneyZilla
{quote} Whats wrong with you?!? This is a joke! No porn either! The picture is NOT pornographic imho...
Dear MZ,

I really appreciate it if you kindly delete/clean-up that post, as it really doesn't fit with the thread content.
The picture is porno, and I am sure you know this is not the right place for that.

I for myself, do not want my posts to appear side-by-side on the same page with such images.

With all respect,
Khalil
No guts, no glory
  • #36
  • Mar 8, 2018 1:26pm Mar 8, 2018 1:26pm
Quoting HabibiForex
{quote} Martingale is strickly money management based corrcorreect?
Rarely. Some guys, mostly EA developers, try to tweak the entries with indicators, or restrict the number of levels, meaning they close the basket after a maximum level is reached, or set up a stop loss based on the equity, or a combination of all these.
I have developed myself some in the past and even made some money with it before understanding I was just very lucky and there is no added value to these kind of approaches, unless you have unlimited amount of money. For the EA developers or signal providers, martingales are great because they can show a nice growing curve and sell the EA or signal to newbies. Once it blows up, they start again. Give me any martingale EA you may have and I will find some settings that will make it a holy grail...for the past years.
Don't give up on your dreams. Keep sleeping.
  • #37
  • Mar 8, 2018 1:41pm Mar 8, 2018 1:41pm
Quoting MoneyZilla
Hidden
i thought it was naked trading? it seems i was wrong...
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #38
  • Mar 8, 2018 2:03pm Mar 8, 2018 2:03pm
Quoting billytt
{quote} i thought it was naked trading? it seems i was wrong...
lol.

You get me confused.
I thought all this was about Kelly criterion, modelling and backtesting quality.
Back to the drawing board.

LuXing

EDIT: Love the naked trading parallel. Brilliant. +1
Wisdom begins in wonder
  • #39
  • Mar 8, 2018 4:13pm Mar 8, 2018 4:13pm
Quoting Artcool
{quote} Rarely. Some guys, mostly EA developers, try to tweak the entries with indicators, or restrict the number of levels, meaning they close the basket after a maximum level is reached, or set up a stop loss based on the equity, or a combination of all these. I have developed myself some in the past and even made some money with it before understanding I was just very lucky and there is no added value to these kind of approaches, unless you have unlimited amount of money. For the EA developers or signal providers, martingales are great because...
Thank you for your reply. I notice you mentioned that the EA developers cut off the EA after certain amount of x. Well what if I had a 25% win rate but that one trade Never fails! You would be able to martingale to profit on the other three orders which Could be winners. Clearly we call that an expectancy but some people follow strict rules for enrry and exit and martingale works perfectly for them.
  • #40
  • Mar 8, 2018 5:19pm Mar 8, 2018 5:19pm
Quoting HabibiForex
{quote} Well what if I had a 25% win rate but that one trade Never fails!
You mean it didn't fail during your extensive backtesting for the past years? Because if this is true, you can just trade it lonely with the maximum leverage...
Anyway, you can assume your martingale is a single trade with a stop loss being your entire account. In this case, you cannot assume you made any profit unless your account had doubled and you had withdrawn at least your initial capital, plus some profits. The profits will start coming up because most of the times, the market is erratic and very often reverse to some previous level, which allows EA to close the basket with a profit, giving the illusion to the martingale trader that he made some profit. But it's a mathematical certainty that at some point the price will not reverse and the martingale will blow the account. Thus, martingales are high risk, low reward system.

If you have a profitable system with a positive expectancy, I don't see how a martingale could be useful for it. You'd better use pyramiding, allowing you to add when you are already in profit and then increasing exponentially your gains without adding any kind of risk to your account. It will often not work, but if it works, it can give you huge gains for no risk. Thus, pyramiding is a low risk, high reward system...but it requires a lot of work and luck of course.
Don't give up on your dreams. Keep sleeping.
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