Disliked{quote} In Icarus, grid size is only use for defining the virtual SL, when reached, it will add new orders. The new orders are not referring to any indicators. Indicators are only applied to trigger entering a first order of a new buy/sell cycle.Ignored
Can you please use grid size space to draw Maximum Drawdown Zone based on the tolerance level in Pips or Points input by the user to enable continuation of trend?
User inputs
(a) Maximum Positions drawdown for tolerance
(b) Maximum pips/points for each position.
(c) Price Level to hold for maximum drawdown
(d) Drawdown cooling or buffer pips distance to tolerate drawdown for the pullback to happen and continue.
Risk control measurement
(d) Trade with compounding and discounting simultaneously. Requires less capital. How much, let EA calculate virtual capital either in total pips or total amount.
(e) Trade with no compounding (use maximum positions at once) but with discounting (when managing with partial profits from selling). Requires more capital.
Let EA calculate it
Example:
1. 10 maximum Buy limit (or buy stop) positions are traded at one time at price level of 1.10 price and TP marked at 20 pips. Probable TP = 10 x 20 pips = 200 pips. Drawdown risk: 10 pips for each pip movement in price level going downwards.
2. User defines 1.00 price level as reasonable cooling period to tolerate drawdown.
3. User defines 0.95 as price level to act as buffer distance ends.
Trigger proportionate hedging by selling 1 position at a time.
4. Please use discounting formula to calculate positions required to manage drawdown and reach a point of liquidation where profit starts accumulating from
the selling of partial trades enough to offset the drawdown arising from Buying. I am not sure it could be 40 or 50 positions or more to reach this level.
At this point drawdown risk is offset by selling generating partial profits.
Simulating same scenario using compounding (scaling up) for Buying and discounting for Selling (scaling down), the capital required will be substantially less. Let EA calculate it.
On the whole, it is important to calculate risk money before trading
(a) Hedge with Equal positions of 10 at price level 0.95 (giving chance for the trend to pullback and continue in buy direction). The drawdown will be completely locked at pip difference between 1.10 to 0.95 . It is to buy time temporarily . Not a favored solution for inexperienced traders.
(b) Hedge proportionally using Grid starting at price level 0.95 at a distance of 100 points for 1 position with TP of 100 points for maximum of 20 positions. If after starting entry just for 1 position, the pullback happens, then the drawdown for buy will be from 1.10 to 0.95 and if the trend continues in favored direction, the drawdown will start getting reduced though TP until 10 positions hitting TP (calculated between 1.10 to and 1 positions hitting loss. Ideal situation. At most, only 1 hedged position will create drawdown. Compounding in a way works here.
If buying continuation does not happen, then discounting by selling should work. Let EA calculate at what point discounting will offset Drawdown happening from Buying.
Entry can be by any indicator RSI or BB or Moving Average, support and resistance levesl or by discretionary/manual trading.
Important is risk control.
Once EA tells you what could be the maximum risk you face, then if you have sufficient financial resources, trade it. Or drop it if your pockets are small enough not to take such a risk.
https://www.sapling.com/12115675/rel...ng-compounding
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