100% Win Math Grid Ea

Well that sucks. How am I supposed to test my theory then? Crap! Tradingviper, help!

There appears to be a small flaw in the EA logic. I am using a 2 level grid.

When price moves down to S1 and/or S2, no pending buy orders are opened. When price reverses and moves up to hit the long TP, a loss is realized. I have attached a pic as an example.

The opposite situation is fine (ie. price moves up to B1/B2, pending sell orders are opened and profit is made when price hits the short TP).


Is it possible to have a user defined "initial price" to start the vgrid at as well? This would help to start a grid at a psych level, fib level, S/R level, or if you wished to initiate multi grids that overlap properly. (I know plasmapants would appreciate this too!)

optojay,

Check your max% or max_lots settings. Zero them out and you won't have that problem. The EA is working correctly.


asterixx,

Im quite doubtful your theroy will work. Could you show it visually (on excel or something) so we can get a better understanding exactly what you are saying. By what it sounds like the me, you don't completely understand the math behind the EA.

I've been running this EA non-stop for several days. I'm not a coder and I can't look inside the program to see how it's designed, but I see what it's doing on my charts.

I like the EA and I like the system in general.

But there seems to be a gross misunderstanding from the members here on what exactly loss mitigation means. Because so far the only description I see here, is that in order to avoid losses we must open ever larger trades and wait for the price to cross a (red) outter TP line.

But that is not loss mitigation. Think of the adage, that if you're already in a hole then it's time to stop digging. Stopping digging, that is loss mitigation.

The EA is already chock full of tricks that will open trades and pull us deeper into DD during a tight range. Why is it so hard to imagine a similar tactic that will dampen our DD, lessen our losses, during a tight range? Is it really so impossible to imagine? Not for me it isn't, and I really think this idea has merit and I would like to see it added as a possible trade option.

If you honestly think that all we have done to try and 'mitigate' the losses is dig deeper then you haven't read the thread at all.

What do you think the 'high water mark, 'low water mark', max_lots, cut_losses etc etc does?

Im not flat out saying you are wrong. Bu why doesn't anyone visually prove they are right before being so defensive. Is that too hard?

You don't have to be a coder to see how it works properly, but even if you have a few bounces then just stop trading, your losses will still be very significant and will destroy what profit you had anyways.

Agreed.


Asterixx it would be useful if you could provide a paper trade to demonstrate your concept. You dont need to be a coder to do this.

Take aud/usd starting on the 28th/Oct at midday. Price was 9050. Take a 3 level grid with a 40 pip increment, so you need 160 pip move to take profit.

Can you show the open positions and the ones you would close in loss, the total losses, and what the net profit will be when the red lines are hit.

You'll be exiting the trade on the 9th/Nov at about midnight.

If you can prove it on paper than someone may code it.


(If you leave it to run as is, the trade would close for about 80 pips x your initial lot size).

Who's getting defensive? I'm calm as can be. You're reading wayyy too much into my replies.

As for proving visually, I've tried, but the EA deletes ALL my trades the moment I take one out manually. Kinda hard to prove my point when it does that.

Thanks for your suggestions, but the settings you suggest are zero. Everything is default. Furthermore, I have demonstrated that this is with an initial grid - so hardly any lots are used.

Try it out - start a 20 increment 2-level grid at 1300 hrs on Nov.10/09. I've reproduced the problem on several different dates. Anyone else have this problem or am I the only one? Edit - should be a 12 increment grid

Perhaps it only happens on 2 level grids...

are you using version 2.3 or 2.4?

Asterixx,

Sorry, i don't mean to sound negative. Ideas are still ideas, good to see they are still coming.

I guess for me..... i have tried soooooo many different scenarios and spent 100's of hours using different methods and ideas to help dig myself out of the hole once in bad DD but came up with all losses (overall i mean).

Not saying it can't be done but personally, im extremely doubtfull it can. Even taking a 'small' loss to help with DD still manages to kill off any profit you get your hands on.

Again, i wish someone would prove me wrong but im yet to see it and probably never will.

Another option you could try is instead of killing off 1 complete trade (there by ending the set your in), kill of 50% of the 2 oldest trades. Would you still not achieve what your trying to do? By also doing that, you won't kill of the current set your in


Good luck

Do it as a paper trade using excel.


edit: if you want to do it live, instead of closing the trade, hedge that no. of lots for the position you want to close with the same tp/sl as the rest of the trades. when the sequence closes you will know if you are making p or l.

I'm glad to see my ideas are generating interest, so let me try explaining the method again and let's see where this goes. Bear with me please...

First of all the method I am describing would only be used during a possible "death trade" scenario. I am not suggesting this method should be considered for every day trading.

Imagine that we're having a bad day like we had last week, where some members here we experiencing 150 open trades (or more) with very serious DD. This is the type of day where my method would come in handy.

The method:

Two new settings have been added to the EA: A Level setting and a Reduction setting: The Level setting tells the EA how many open trades there can be before it needs to start culling, and the Reduction setting is the maximum number of trades you wish to cull.

Say the settings are 25 and 6. So when the 26th trade opens during a badly ranging day, the EA will look for an early trade which is in the heaviest DD and delete that order at the same time it's opening the "26th" trade, leaving just 25 open trades.

Because the Reduction number is just 6 then this action will only repeat 6 times, after which any number of live trades can still be opened. So basically, trades 26-32 don't open as they should, but they will still open after the 6 Reduction trades have run their course if the ranging continues.

Like I said before, this method does not "create a win", but it should help preserve our equity and mitigate our DD, thus prolonging our trading cycle until the death trade has had time to pass into profit.

Remember, the Level/Reduction settings are user defined and are completely flexible. If 25/6 sounds too constricting to you, then set it for 40/4, etc.

More possibilites for this mthod: That if a Buy opens the EA culls a Sell. Or a Buy. Or that if a .10 lot opens, then the EA culls a .10 trade. Or a .05 trade. Or that after #25 the EA alternates the open/cull sequence instead of culling 6 straight trades. Or that the culling sequence can be adjusted by blocks of trades. Like, no culling until 20, but from 20-40, 41-60, 61-80, etc., it will only cull 6 trades per 20-trade block.

As you can see this method is VERY flexible and could go in several directions, even several directions at once.

But the bottom line is this: The method is designed to cull dead weight from our DD, preserving equity and extending margin, thus adding more time to the over-all trade cycle and thus giving it more time to go into profit before a margin call.

I just do not see why one or more of these ideas can not add to the over-all profitablility of an already great system.

I tried both version 2.3 and 2.4. Both show the same problem. I made a mistake in my previous post - I used a 12 increment grid to demonstrate the problem, not 20.

Who know's what the problem is. I'm not trying to waste anyone's time....Seems I can make the problem happen when increment is small...but the EA works OK with larger increments...perhaps it only happens with 2-level grids...

Hi Jay, You didn't give the currency so I tried to replicate with GU but with no results. The logic worked fine in all cases with a 2-lvl grid, incr=12;

I would like to caution about small increments - I was using increment = 15, just to test and cycle through trade sets faster. It is not wise to actually trade with such a small increment. You will invite the Death Trade to your account way faster (which happened to me while investigating this for you - which was my only set loss).

Also, and this may be happening to you, you may be experiencing a large widening of the spread, easily exceed 12 pips, 24 pips, etc. I don't know how good or bad your spreads are or how often they spike wide.

ForexFlash did a lot of testing and he recommended, if I recall correctly, never using an increment less than 50 pips.

Try it again (with any number of levels you want) and use a more reasonable increment size like >25.

I do apologize. I realize I submitted a version with the default grid that was small (using for testing). The original mgrid had 35 as the default setting.

Viper

Where I can find more about Grid System?

Please advice.

Thanks in Advance.

ILoveFF

There are many different types of grid systems. If you want to learn more about this one, read the thread. Seriously, I am not trying to be rude, but there is a lot of information embedded in the thread. A lot of people have worked hard to improve the strategy, so please don't be lazy and read the thread... after that, if you have specific question feel free to ask :-)

I'm going to bed.
Viper

I wasn't going to work anymore on the single grid EA, but in light of my own experiences with hitting max orders broker limits, and others similar experiences, I have decided to enhance the risk-mitigation strategies by adding additional ways (e.g. max open orders) to trigger both the high-water and low-water marks.

Again, the low water mark, once activated will behave the same way (reduce profit target, always still end in profit or breakeven). I have just added additional ways to trigger that state.

For those who don't use the risk mitigation strategies (plasma), there will be no change. Version 2.5 is a nice round number to end on as well.

Next should be version 1.0 of ViperMultiGrid - which, by the way, will be easy to run as a single grid also.

Now I am really going to bed. Good night everyone. :-)

Trade well, live well.
Viper

.

Thanks Viper, I will.

Hi all,

I am currently "demo-testing" ViperGridEA_version2.4.

I have a question::- What setting do I need to use to stop running this EA when the set is executed (in profit/loss).

The reason I ask this is I want to be infront of the screen while this EA runs and when the position is closed (hopefully in profit), I want to close this EA and start again when a) I am infront of the PC and b) When I know there is good chance of market movement i.e like london open, NY open, NY close etc.

Appreciate your help to this newbie.

Cheers