Disliked{quote} Hi ThangNguyen, I have a slightly different perspective on how your EMA could be used as a component of Icarus. It seems to me that Icarus is a fantastic tool for collecting profits when market action provides frequent pullbacks within ranges or trends. In this environment, we can run Icarus in both directions, all the time, with success. The problem is the potential trend that comes along (rather frequently) without sufficient pullbacks to allow Icarus to close out trades in profit. What if we use your EMA trend filter to step in around...Ignored
I understand your opinion but please correct me if I am wrong.
EMA or all other trend indicators calculate trends based on past prices. If you already trade and the new strong trend comes up against you, there is no way to close those trades profitable without sufficient pullbacks. When the first trade against the trend keep losing money and keep opening new order to cover it and lose more, the opposite trades that follow the trend are already close in profit one by one. Nothing there to balance the loss.
The only 2 options here are to enable "Hedge order to balance" or close losing trades to protect the account if the trend is too steep.
Hedge order to balance is an option with a cost of high risk because you will have more big lot trade on the table.