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MGH System (Martingale Grid & Hedging)

  • #121
  • Aug 3, 2014 10:07pm Aug 3, 2014 10:07pm
Quoting hewtwok
{quote} ah nice chart...now i see buy 1st 1 lot with TP 10 pips ---> price move down... buy 2nd 1 lot with TP10 pips (moved 1st lot TP to 0 ips) ---> price move down... buy 3rd 1 lot with TP 20 pips if price manage to climb back up and all hit TP, i go opposite trade i.e. sell 1st 1 lot (the cycle begins again) TP hit...so i go opposite trade again...i.e buy 1 lot and so on.... am i rite?
just curious...say i entered my
buy 1st lot x1, price down
buy 2nd lot x1, price down
buy 3rd lot x1, price down

at what stage shall i enter the Sell lot x2?
or should i wait until the above 3 buy trade to reach ?? % drawdown i emergency close all trade at loss target which i set?
  • #122
  • Aug 3, 2014 11:12pm Aug 3, 2014 11:12pm
Quoting hewtwok
{quote} just curious...say i entered my buy 1st lot x1, price down buy 2nd lot x1, price down buy 3rd lot x1, price down at what stage shall i enter the Sell lot x2? or should i wait until the above 3 buy trade to reach ?? % drawdown i emergency close all trade at loss target which i set?
correct me if i'm wrong. u start only sell x2 lot when the price reach lvl 4 (10 pip below your 3rd buy) this is hedge x2. untill u reached 100 pips, then u close all.

if, let say the price go down, but didn't reach your tp (your sell x2) and go back up, and all your 3 buy x1 order hit tp, u wait for another level above your buy x1 TP and start buy x4 and stop when 250 pip gain. this is hedge x4

this hedge x2 and hedge x4 and so on only happen if the market does not agree with the basic entries of MGH system.

i hope i got this right
  • #123
  • Aug 4, 2014 3:36am Aug 4, 2014 3:36am
Quoting Ata-Turkoglu
{quote} Hi Kfx, Was busy all day and had to drive long distance too.. so couldnt reply till now.. Thank you so much for your explanations on my Hedge x2 question. It was so helpful again. Many Thanks..
Quoting mwsteiner
{quote} Thanks a lot KFX!!
No problem guys.
  • #124
  • Aug 4, 2014 3:40am Aug 4, 2014 3:40am
Quoting Ata-Turkoglu
Hi Kfx... you know what? Just like Neo was saying in the Matrix movie: "I know kung-fu...." same way I know now your system.. finally I got it.. Understanding the base method and hedge x2 opened the doors of understanding hedge x4 and x8 and x16 and all connected because now I can clearly see that these are all the methods we had to use if things go in the opposite way. Because at the very beginning I was assuming the examples you are axplaining are all separate but they were not. They are just a response to the market if price goes against...
I'm glad you understand. You are right, all are parts of the same system and is very important to keep in mind spread and commissions when we calculating the net profit.
  • #125
  • Aug 4, 2014 3:43am Aug 4, 2014 3:43am
Quoting dashisiong
{quote} A picture is better than thousand words! Thanks alot...now i understand your basic level 1 grid now...waitin for more.... Btw the way 10 pips grid is an example only? Can we use 15 or 20 pips grid depends on pair ??? Thanks
Yes, 10 pips grid in EUR/USD is only an example, you can try to use another grid size or pair.
  • #126
  • Aug 4, 2014 3:45am Aug 4, 2014 3:45am
Quoting catextract89
been reading all the pages. i hope i understand everything, i will test it out on demo on Eur/Usd for this week and give feedback on the test anyway, i use this sweetspot indi as guidance because it draw 10 pips grid {file}
Nice one catextract89. I use this.
Attached File(s)
File Type: mq4 Grid_v2.mq4   4 KB | 1,478 downloads
  • #127
  • Aug 4, 2014 3:51am Aug 4, 2014 3:51am
Quoting hewtwok
{quote} just curious...say i entered my buy 1st lot x1, price down buy 2nd lot x1, price down buy 3rd lot x1, price down at what stage shall i enter the Sell lot x2? or should i wait until the above 3 buy trade to reach ?? % drawdown i emergency close all trade at loss target which i set?
You should enter your first sell x2, 10 pips bellow from your 3rd buy.
  • #128
  • Aug 4, 2014 3:55am Aug 4, 2014 3:55am
Quoting catextract89
correct me if i'm wrong. u start only sell x2 lot when the price reach lvl 4 (10 pip below your 3rd buy) this is hedge x2. untill u reached 100 pips, then u close all.
Correct

Quoting catextract89
if, let say the price go down, but didn't reach your tp (your sell x2) and go back up, and all your 3 buy x1 order hit tp, u wait for another level above your buy x1 TP and start buy x4 and stop when 250 pip gain. this is hedge x4 this hedge x2 and hedge x4 and so on only happen if the market does not agree with the basic entries of MGH system. i hope i got this right
That's correct too.
  • #129
  • Edited 7:24am Aug 4, 2014 7:10am | Edited 7:24am
Quoting Kfx
This is another example of "Basic entries" when our martingale and hedging are not necessary to use yet, only grids. I think this time will be quite clear, I do not know how to simplify it more {image}
Hi Kfx,

So far, after doing my homework and studying your system I have one more question to ask.

In the drawing regarding to the rules you listed in your first post, you are starting with a "buy" when price comes down. You don't open any sell before all earlier longs are closed. Or if price falls even more you start the "only short hedge x2" series. I look at the other examples and still they all start with a "buy trade" when price comes from above.

So my question is: Do we always have to start with a buy? Could we also start with a sell when price comes from below and then reversing the rules? That means we will start our first trade, now price comes from below. Here we open a "sell trade" first, additionally we apply same rules in a reversed way.

Is this allowed? Logically it should work though, but I wish to know your opinion.

I asked this question because it is closely connected with this question:
-Would it not more better to think first how to start the first trade of the day? With a first buy or with a first sell? By considering if the market is going sideways, up or down? Because subconsciously I feel like if we start going against the trend we already push ourselves into the hedge x2, x4 etc. situations, right? Just thinking out loud.

Happy Trades
Focus only on what truly matters!
  • #130
  • Aug 4, 2014 8:28am Aug 4, 2014 8:28am
Quoting Ata-Turkoglu
{quote} Hi Kfx, So far, after doing my homework and studying your system I have one more question to ask. In the drawing regarding to the rules you listed in your first post, you are starting with a "buy" when price comes down. You don't open any sell before all earlier longs are closed. Or if price falls even more you start the "only short hedge x2" series. I look at the other examples and still they all start with a "buy trade" when price comes from above. So my question is: Do we always have to start with a buy? Could we also start with a sell...
i think MGH is more into how to manage your trade if your system fail you.

let say, i trade using system A. I see a buy opportunity, i open buy trade, and the price goes against me. this is the time where MGH system will be applied.

nevertheless, like you said, we need some sort of rule to trigger either to start with buy or sell.
  • #131
  • Aug 4, 2014 8:33am Aug 4, 2014 8:33am
Kfx and all, Im trying to understand this system kindly please comment if my chart is correct. And my question is,are the last 3 buys (2x) correct? what is to do next after all my last 3 sells taken profit? do I buy? or sell? Many Thanks!
Attached Image (click to enlarge)
Click to Enlarge Name: fx.png Size: 31 KB
  • #132
  • Aug 4, 2014 8:43am Aug 4, 2014 8:43am
Quoting catextract89
{quote} correct me if i'm wrong. u start only sell x2 lot when the price reach lvl 4 (10 pip below your 3rd buy) this is hedge x2. untill u reached 100 pips, then u close all. if, let say the price go down, but didn't reach your tp (your sell x2) and go back up, and all your 3 buy x1 order hit tp, u wait for another level above your buy x1 TP and start buy x4 and stop when 250 pip gain. this is hedge x4 this hedge x2 and hedge x4 and so on only happen if the market does not agree with the basic entries of MGH system. i hope i got this right...
hmm i can't help but to think about this...hedge x2.
how many levels will be hedge x2?
as price drops further down, i create more hedge x2 up to 3 levels too?
or just 1 level of hedge x2?
  • #133
  • Aug 4, 2014 8:56am Aug 4, 2014 8:56am
Quoting mario777
Kfx and all, Im trying to understand this system kindly please comment if my chart is correct. And my question is,are the last 3 buys (2x) correct? what is to do next after all my last 3 sells taken profit? do I buy? or sell? Many Thanks! {image}
so far your picture is correct. what happen next is, after the 3 sell x1 tp, u wait for the price to reach level 4 below your first sell x1. and then we start with hedge x4. if not, stay with hedge x2 and close all position when u reach 100 pips.

i think that's about right. sorry if i'm wrong, i'm trying to fully understand it too
  • #134
  • Aug 4, 2014 9:07am Aug 4, 2014 9:07am
Quoting hewtwok
{quote} hmm i can't help but to think about this...hedge x2. how many levels will be hedge x2? as price drops further down, i create more hedge x2 up to 3 levels too? or just 1 level of hedge x2?
yes, just like the basic entries. 3 level of hedge x2 until u reached the profit target. if, your hedge x2 failed you, then it's time for hedge x4, then hedge x4 inside and so on.

this hedge x4 inside is confusing for me to. will study it further during my live test this week
  • #135
  • Aug 4, 2014 9:13am Aug 4, 2014 9:13am
Quoting catextract89
{quote} i think MGH is more into how to manage your trade if your system fail you. let say, i trade using system A. I see a buy opportunity, i open buy trade, and the price goes against me. this is the time where MGH system will be applied. nevertheless, like you said, we need some sort of rule to trigger either to start with buy or sell.
Hi Catextract89,

Yes I look at it the same way you mentioned. The systems acts like a rescue mission once you realize your trades get trapped inside a wrong turn. The more I understand the logic the more I want to participate on developing the best version out of it. But first things first, learning the basics should be the only goal for now. But yes I started making thoughts about finding a trigger rule for all kind of buy or sell scenarios.

Appreciate your ideas and cooperation.

Happy Trades
Focus only on what truly matters!
  • #136
  • Aug 4, 2014 9:53am Aug 4, 2014 9:53am
Quoting hewtwok
{quote} hmm i can't help but to think about this...hedge x2. how many levels will be hedge x2? as price drops further down, i create more hedge x2 up to 3 levels too? or just 1 level of hedge x2?
Just keep taking those x2 TPs until you get to 100 net pips profit, then close the whole bunch. Unless, like CAT mentions, the price moves back up and you have to start your inside x4
  • #137
  • Aug 4, 2014 9:56am Aug 4, 2014 9:56am
I have a small account I'm going to throw this on...(I hate demos)
I'm using the EurUsd but trying with a 50 pip grid (backtested fairly well) so I won't have to watch it 24/7.

Got my pending orders set...

Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD!H1.png Size: 57 KB
  • #138
  • Aug 4, 2014 10:17am Aug 4, 2014 10:17am
if someone can summarize this system, maybe we can write an EA for it.
  • #139
  • Aug 4, 2014 10:51am Aug 4, 2014 10:51am
Quoting Ata-Turkoglu
So my question is: Do we always have to start with a buy? Could we also start with a sell when price comes from below and then reversing the rules? That means we will start our first trade, now price comes from below. Here we open a "sell trade" first, additionally we apply same rules in a reversed way. Is this allowed? Logically it should work though, but I wish to know your opinion. I asked this question because it is closely connected with this question: -Would it not more better to think first how to start the first trade of the day? With a...
Yes, no problem with that. You can start selling if price comes from above if you want, or you can use some signal or indicator.

But I prefer to make many entries constantly with a simple criterion, to earn many pips to support a large Drawdown.
  • #140
  • Aug 4, 2014 10:53am Aug 4, 2014 10:53am
Quoting spyderman
I have a small account I'm going to throw this on...(I hate demos) I'm using the EurUsd but trying with a 50 pip grid (backtested fairly well) so I won't have to watch it 24/7. Got my pending orders set... {image}
50 pip eh? this look interesting. with 10 pip apart, i'm constantly watching the price movement. maybe i should give this a try. i also doing this on a small cent account with 10USD for this test. will give back the result once this week is finish.
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