Win in Trend and Win in Range

For those who have been in the markets the past few months may have experienced lower volatility in April, given the bank holidays and the Golden Week in Japan.
I have seen many accounts make substantial losses in the month of April. It really is a test of the robustness of your strategy in times like this. And these are times that remind you the need for diversification.

See the dip in near the middle of April. It is noticeable. Without diversification I would not have maintained my equity line as much as I would want to.

I have seperate strategies for trending and ranging markets in order to trade in both.

Hi

I love the concept of winning no matter what.

I have read through half the thread and after checking the attachments, realized that nobody shares any EA or Indicator that will work. Some are only teasing everybody with awesome test results. Not sharing the EA that caused it. So it is a waste of time.

My 2 cents:

If your pockets are deep enough MARTINGALE will always work. FACT!! BUT TREND is not martingale's friend for us with not so deep pockets.

So what works in a TREND? Aha a GRID system. But Ranging market is not a GRID's friend.

NOW why not combine the 2.

Start off with martingale. When martingale hits a unexpected trend the GRID system kicks in and sort of hedges the MARTINGALE. THIS CAN MAKE OUR POCKETS A LITTLE DEEPER AND KEEP US IN THE TRADE.

When to take profit.

1. If the trend turns (and it will) and Martingale goes into profit. Sell all because Grid may also have some profit. Find a sweat spot to just break even
OR
2. Do a basket close.
a. At breakeven. Because when grid system kicks in our only goal is just to prevent the suicide trade and account destruction. Normal martingale will give enough other profits. We can take this BE on the chin.

I would suggest always Hedge so that after grid trade the DD is at your accepted SL . If your accepted SL is 50pips but your martingale hits 60 pips the grid trade must cover the difference (10 pips).

What do you guys think?

Can somebody code this thing? We also need mathematicians to calculate the precise grid trade lots and grid range.

A shame that this thread has stopped. But let me give some inputs anyway.

To win in both ranging and trending markets. That is hard. But can be done. Many markets have a well sized range in which you can earn money. And with the right exit strategy, your position might even hold if the market brakes the range into a new trend. If the range is to small - do not trade it.

EA proposal.
Start by identifying if you have a range or a trend. Of cause this can be done manually, but let us talk about how to make an EA. I like Bollinger Bands. If you know how to read it, they will tell you the market condition as well as the change very quickly. Now that you know the market situation, your robot must use the set of entry/exit methods that fits the market condition. So now we have a robot that trades both conditions.

But it is vital to read the market in a higher timeframe and trade in a lower timeframe.
If HTF says "Ranging", it must define the entry exit zones. The trades must be taken in Lower TF when those zones has been visited and a nice entry bar shows up. Exit when opposite zone is reached.

If HTF says "Trending". Well I think it is ok to stay in the HTF to take the trend. An indicator is needed that indentify a strong bounsing bar from the trendline. That is the signal.

By the way, at strong signal bar is allways required.

The hardest way is to determine between range and trend, especially if you want to catch them in the beginning, otherwise RRR are not so much in your favor.

I see, most of the time when we have such a long trendy market afterwards the market creates a big rang! In addition, range trading is also profitable!

Yes even I believe in catching the trends in beginning is useful, we can study markets in depth and perform accordingly.

Both Ranges and Trends have different volatility and levels of aggression in other words they are not all the same so you cant fit a black box around anything in trading hence why EAs always end up failing.

Markets are Dynamic