MGH System (Martingale Grid & Hedging)

Quoting catextract89

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{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.

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Quoting mario777

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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}

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Quoting catextract89

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{quote} 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

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Quoting spyderman

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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}

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Quoting hewtwok

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{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?

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Quoting spyderman

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{quote} 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

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Quoting GoldenEA

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if someone can summarize this system, maybe we can write an EA for it.

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Quoting spyderman

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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}

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Quoting Kfx

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{quote} By the way spyderman, we could also use dynamic grids depending on the ATR value. What you think?

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Quoting gridmaster

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is this ea works, any one comment it, suppose u thinks in a pair in over brought or over sold condition or r2,r3,s2,s3 support and resistance condition . u open a big order if that order fail u will ruin or big loss. u open it like 5 buy or 5 sell. i assume u open 5 buy lot. but price goes down so u r in loss. ....... then u use an ea which having these quality. 1. it open pending order 20 pending sell stop order blow ur 5 lot buy order. it will never open sell order above ur buy order.always blow ur buy order having grid size 100 (suppose). 2....

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Quoting spyderman

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{quote} Makes sense to adjust the grid to some factor of ATR, if for no other reason then to facilitate manual trading...can't very well monitor GbpJpy with a 10 pip grid. Now if you get an EA going, then you can optimize to find the best "historic" setting for that pair. As an example, I backtested 1 pair (think it was EurChf) this weekend using various grid sizes. 1 size produced about 350 pips for April. Another size was 150. Another was about 50 but with an open drawdown at end of month.

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Quoting spyderman

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{quote} Makes sense to adjust the grid to some factor of ATR, if for no other reason then to facilitate manual trading...can't very well monitor GbpJpy with a 10 pip grid. Now if you get an EA going, then you can optimize to find the best "historic" setting for that pair. As an example, I backtested 1 pair (think it was EurChf) this weekend using various grid sizes. 1 size produced about 350 pips for April. Another size was 150. Another was about 50 but with an open drawdown at end of month.

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Quoting catextract89

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{quote} i notice this as well. don't know how will ATR value will affect the system. cause like spyderman said, there is no point in 10 pip grid in GbpJpy. different pip grid yield different result for different pair. that apart, i will stick with 10 pip grid in EurUsd for this whole week. let see how it goes this is my grid currently {image}

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Quoting xlcharly

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Dear friends, I want to suggest you this upgrades: 1) consider only exchanges that has an ADR (average daily range, period 10 or 20) that is >=60 pips 2) consider the 50% fibo line; if grid lines are above 50% line than we consider only sell signal, if are below we consider only buy signal I mean, the 50% fibo line is somewhere an attractor for the dinamic of daily price, so it's better to consider it. See the picture of today GBPNZD http://i62.tinypic.com/29vaz9z.jpg {image}

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Quoting Ata-Turkoglu

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Hi Kfx, Yet another question: We opened our first long trade and then price goes against us so we open a second long trade..... now..... if price goes higher and hits TP's of these 2 long trades. Are we allowed to open a short trade here? Or do we have to wait till 3 longs close at one strike? Asking same question in other words: If price comes back to level-1 and closes our 1 long trade, or 2 long trades or 3 long trades in one strike at which case we are opening the first short? I hope my question is clear enough. Many Thanks

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Quoting xlcharly

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Short S1, S2, S3 close at tp at arrow1, because grid is above 50% fibo (dotted white line); then open a long L1, cause grid is below 50%; then close L1 and open S1 (sorry....my mistake) at arrow2 and then S4; both closed at tp at arrow 3; no open a buy!!!! then open a buy L2 (below 50%fibo) that goes at tp (arrow4); here open a sell S5; then S6, then S7....tp at arrow 5; then S8 tp at arrow6. All trades at TP!

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Quoting Kfx

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{quote} Hi xlcharly, welcome to the thread. I like your idea. Do you draw the previous or current fibo? Thanks.

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Quoting spyderman

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{quote} Hmmm...interesting. Did you cherry pick that pair or just take one at random. If you're really confident in the attraction, why close the sells at arrow 3, ride them to L2. Of course that skews the whole strategy.

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