Math Monster Martin Trend .......... ka ching

ok daddy here it is

this is my start of the math monster martin...

Ok first here are related links
http://www.forexfactory.com/showthread.php?t=150293
http://www.forexfactory.com/showthread.php?t=129813
http://www.forexfactory.com/showthread.php?t=144198
http://www.forexfactory.com/showthread.php?t=120926
http://www.forexfactory.com/showthread.php?t=59775

These links above have helped me come up with this method.
I would say the most important would be 100x80. That EA works similar to this method.

The spread sheet is up for download but it may change if better ones or updates are added.

When an EA is formed from this method it will be placed here as well.

Method
the method is based similarly to the 100x80 method but was not using offset numbers.

For programmers

The start of the method is checking the spread vs. average spread for a pair. If the spread is too wide, it is not going to trade (wide spread usually indicates news moves). We also might want an option to close all trades until spread returns to normal (in the EA these settings should be optimized for each pair).

Step 1
If spread is normal range, then enter long and short at step 1 price. (To be determined)

Step 2
If movement of "x" pips achieved (movement of x to be determined) enter new trades. One long one short. Confirm new trades. Price of new trades based on step 2 price (step 2 to be determined) also close losing trade from step 1 at the same time.

Step 3
If movement = x , activate step 3 if movement returns price of step 1 then close all trades and reset to (Step 1) if then movement = x in trend direction (away from start at step 1) enter new trades. One long one short. Confirm new trades. Price of new trades based on step 3 price (step 3 to be determined). Also close losing trade from step 2 at the same time.

Step 4-9
These are similar to step 3 other that inputs numbers.

last step
(last step to be defined) closing all trades and resetting to step 1

inputs
Enter trade entry price per pip on all steps.
Winning side and losing side each step has its own entry price.
There must be a limit of steps (fewer steps for smaller accounts)
magic number.
Define super trend or last step

super trend is calculated with (0 SL possible trailing stop) (does not follow last step rules)

last step closes all trades and resets EA

if you need more info please ask away.
Method to the madness
ok this is how the method works and why it would work.
In the 100x80 or 60x90 and all the others they work great until your pair begins to trend beyond the limits of your margin or your account balance- aka the death trade. Well this method works just like their’s but instead of a death trade we are left with a profit. This profit can be achieved because of stacking the deck during trend plus having the retracing for safety.
This method is calculated so it leaves you in a set up at the last step where you win either way it goes.

Explaining the jpeg below
red circled area
this area is the price of each step starting with .20 and moving down
the yellow boxes in there are inputs for movements in this example it’s placed at 20 pips.

blue circled area
the blue box in the example "43.00" is the close of the seventh level the 43.00 = profit of close you will need to factor spread.

yellow circled area
in this area you have 2 colors an orangish brown and light green
first the orange/brown you see 1.00/11.00/23.00/43.00/87.00/179.00 those numbers are your profit if the pair you are trading has reversed after reaching this its level and closed all trades.
the light green area is your loss/profit if closed at that level
this does not factor spread

black circled area
this is accumulated profit/loss you can note that we leave more open on the winning side vs. the losing side this creates an advantage to the winning side.
This is the secret to the math.

the whole idea here is to eleminate the death trade and keep profits in trending pairs.
its good for both ranging and trending together

i have changed the green boxes they are now step levels

and i added a fun little chart that gives you some idea as to how this thing works

Kinda get it. However it's a mind bender for some reason.
It would be interesting to watch it play itself out.

i'm getting an EA set up for it. i know its a mind bender imagine meeting me daddy.

A few questions, let's take IBFX's penny trading account and Nanningbob's 60x90 EA for example.

1. does cell(j2) means the pips movement? like 90 pips in Bob's EA?

2. you assumed that you multiply your position size by 2 for each level? right?

3. cell(j3) or cells(n3) means position size? if so, why use a "$" sign? if not, $0.2 is pip value? or contract value?

4. for cell(p3) ~ cell(u3), can you double check your formula? I cannot understand the logic behind.

thanks.

i find it hard to believe that there is a holy grail.

j2 is movment
j3 is price per pip
ok daddy

first you have .20 and .20
1 long and 1 short.
if it moves short 20 pips it closes the long of .20 for a loss of 4.00
at this point the step 1 trade of .20 has gained 4.00 ( but not closed out)
and opens 1 short of .20 and a long of .45
so you now have 2 ways it can go long or short. 20 pips
if it goes short 20 pips your .45 gains = -9.00 + -4.00 form earler
and it gets in again 1 long 1 short. [email protected] and [email protected]
the first short trade = 12.00 second = 8.00 and 4.00 for third short. ok now lets assume it reverses here. the price would return to step 2 level
that means trade #1 will have 8.00 earning and trade #2 has 4.00 and trade 3 a loss of 4.00 this would equal (8.00+4.00)-4.00=8.00
and the long side would have
level 3 = (.80x20)=16.00-(9.00+4.00)=3.00
8.00+3.00=11.00

$11.00 is our profit
what do you think about that daddy.

now if you go the full 7 levels your short profits go like this your trade:
(1)=$184.00
(2)=$96.00
(3)=$48.00
(4)=$48.00
(5)=$48.00
(6)=$64.00
(7)=$64.00
with a + 20 pips past step 7 this = $552.00

and with long trades you get
(1) 20-.20= -$4.00
(2) 20-.45= -$9.00
(3) 20-.80= -$16.00
(4) 20-1.60= -$32.00
(5) 20-3.20= -$64.00
(6) 20-6.40= -$128.00
(7) 20-12.80= -$256.00

this = -$509.00
so you take 552.00 - 509.00 = $43.00

so $43.00 your profits if it runs 20 pips past level 7

is this helping you out daddy

It is quite similar with small twist.. I like the idea and will try to make it into EA. Good for backtest.

But this kind of martingale or grid will have problem running at live account due to connection/reQuotes etc..

i would love to see an ea do that.

wow im impressed dmj, spent about 3mins jsut taking it all in and having a think about it....

and yeh i jsut reccomend you get a broker outside US before the anti-hedging stuff possibly comes in...

as long as requotes etc are fine this should work brilliant...

or will it??? let me go over the maths a few more times before i get excited...

i would have to make each step entrance it cant just be a multiplier.
and we would need step control i can calculate it to end at different levels. and i can even make it do some other wonderful things too after i have the EA ill start showing you what i mean. but let me program the levels because this map is mainly for illustration. but it would work too.

i know about the hedging problem. but i asked IBFX and they said it could be a year.

i understand what you mean, if you applied a strict multiplier it wouldnt really work, need specific step lot numbers

if you make the re-entry every 20 pips it would reset quite often as itll always retrace 20pips every so often... and every reset your in profit...

id reccomend testing on eurusd at first as the spread is small...

potentially (and i may be getting ahead of myself) the only thing you would have to make sure of is your intial lot size so you dont margin out and cover the entire range of a currency

i want to calulate a 4 level then 5 6 7 ect...

yeah smaller spread is good but i dont have to be locked into 20 pip runs it could be 50 or what ever.

and I'm already working on a new 7 level that increases the the second step retraction profits.

this is my 8th version and its not the best its just easier to explain.

this has one more trick up its sleave it can full turn into a trending trade at level 7 (not with these numbers) and at that level if it retraces you get that profit and if it trends on you could follow it with a trailing stop and get profit that way.

this has way more to it than what you see.

i think youll like it daddy

Pls confirm the excell sheet is correct?

oooh daddy likes... daddy rikey very much (non pedophile tone)

please explain where. this excel spread sheet is only 7 steps it can you can change the 20 pips level if you change both yellow boxes. thats the only thing you should think of changing.

the main calculator is not that excel spread sheet that just to show you proof of concept. that spread sheet only is 7 levels

ok daddy

look it over

that looks better...

give me a few more mins to overlook. Luckily we picked that up before

if you understand the method please look over my math anybody