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MGH System (Martingale Grid & Hedging)

  • #241
  • Aug 6, 2014 10:33am Aug 6, 2014 10:33am
Well done Spyderman,

Your reminder for the "open a short only after earlier long(s) is(are) closed" rule has saved my day. Thanks a lot!
Now my question for step 32 remains.

Happy Trades
Focus only on what truly matters!
  • #242
  • Aug 6, 2014 10:50am Aug 6, 2014 10:50am
Quoting Ata-Turkoglu
Well done Spyderman, Your reminder for the "open a short only after earlier long(s) is(are) closed" rule has saved my day. Thanks a lot! Now my question for step 32 remains. Happy Trades

Assuming for the moment that trades 29-31 were correct then you would have started your x4's at the 9100 mark. You would have hit 3 winners in a row on that.
  • #243
  • Aug 6, 2014 10:56am Aug 6, 2014 10:56am
Quoting spyderman
Charly, Was just making adjustments to my pending orders (as I drink my first cup of coffee ) and realized a possible snag using the 50% fib. You will have to wait until you hit TP on a series before you determine which direction your next trade will be, whereas, with Kfx's method that is predetermined so that you can set all your pendings (for overnight) and not miss out on your trades. What do you think.
I think the problem is that we must operate in high volatility period. That's why it's better to avoid long period of eventual loss, for a psychological reason.
So I preferr to open a grid with some starting logic.
If possible, I preferr to avoid long x1, x2, x4....seqeunces.
50% fib help me to open somehow a "directional grid". In an hypotetic EA, sounds good a starting hour too.
Volatility arises from 7.00 GMT (open Frankfurt) to 8.00 GMT (open London and all european markets).
So adding the choice of direction and the high volatilty period, we must see our grid that goes fastly to TP (without x2, x4....).
In my honest opinon!
  • #244
  • Aug 6, 2014 10:58am Aug 6, 2014 10:58am
Quoting Ata-Turkoglu
Hi Kfx, So far I tested myself on a 5 minute chart DAX trade. The steps I followed are documented in the image. I would really appreciate if you could check these steps and tell me if any of my steps are wrong. I also have a question for step 32.. There it became tricky for me.. So could you help me out of my little concern? Many Thanks {image}
Uffff ..... tooo much ... I'll try to answer you ....

1. - About the series before Hedge x2 .... For example, why do you open a sell at (2)? .... When you are trading with x1 trades, you never open opossite trades at the same time.

2. When you start the x2 Hedge, you have to open a sell every time the last sell or sells hit the TP.

3. If you don't get your 100 pips profit at (26) or before, you have to open the x4 Hedge @9120 ... Then, the x8 @9060.
  • #245
  • Aug 6, 2014 11:03am Aug 6, 2014 11:03am
Quoting Eamonn
Great thread Kfx I've been trying to figure this out but have got a little confused when we get past the second series of 2x buys/sells, could you Kfx or spyderman post a chart with each move similar to your second chart (on first page) which is easy to understand when we get to the 4x levels and beyond, thanks in advance Eamonn.
Hi Eamonn, welcome to the thread.

I'll try to post some chart later.
  • #246
  • Aug 6, 2014 11:03am Aug 6, 2014 11:03am
Quoting Kfx
{quote} you have to open the x4 Hedge @9120 ... Then, the x8 @9060.

Ooops. My bad. I had said 9100. I forgot about the "1/2 way between grids rule". Sorry about the confusion. Thanks Kfx
  • #247
  • Aug 6, 2014 11:03am Aug 6, 2014 11:03am
Quoting spyderman
{quote} Assuming for the moment that trades 29-31 were correct then you would have started your x4's at the 9100 mark. You would have hit 3 winners in a row on that.
Thats nice to know, but assuming all trades are correct, I really would like to know what you would do on step 32? Would you open a 4x long?

Happy Trades
Focus only on what truly matters!
  • #248
  • Aug 6, 2014 11:07am Aug 6, 2014 11:07am
Quoting Kfx
{quote} Uffff ..... tooo much ... I'll try to answer you .... 1. - About the series before Hedge x2 .... For example, why do you open a sell at (2)? .... When you are trading with x1 trades, you never open opossite trades at the same time. 2. When you start the x2 Hedge, you have to open a sell every time the last sell or sells hit the TP. 3. If you don't get your 100 pips profit at (26) or before, you have to open the x4 Hedge @9120 ... Then, the x8 @9060.
OK Kfx.. many many thanks.. I have my answers except that "32 issue"

Assume the 9120 level is not where it is and it was at 9130.. so would you open a 4x trade with that tiny little price peak?

Happy Trades
Focus only on what truly matters!
  • #249
  • Aug 6, 2014 11:13am Aug 6, 2014 11:13am
hi all,

i just try with 50 pips grit on 15M tf here is the result if the price going down to level 4 and pull back to level 3 close the trade
the result in positive profit, need your advise sir Kfx,


cheers
Attached Image (click to enlarge)
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Attached Image
  • #250
  • Aug 6, 2014 11:13am Aug 6, 2014 11:13am
Quoting Ata-Turkoglu
{quote} OK Kfx.. many many thanks.. I have my answers except that "32 issue" Assume the 9120 level is not where it is and it was at 9130.. so would you open a 4x trade with that tiny little price peak? Happy Trades
Of course yes .... Now when it has happened you see that is a little peak, but before forming this candle, do you have a crystal ball to see if that will be a little peak or a big up trend??
  • #251
  • Aug 6, 2014 11:15am Aug 6, 2014 11:15am
Quoting Kfx
{quote} Uffff ..... tooo much ... I'll try to answer you .... 1. - About the series before Hedge x2 .... For example, why do you open a sell at (2)? .... When you are trading with x1 trades, you never open opossite trades at the same time. 2. When you start the x2 Hedge, you have to open a sell every time the last sell or sells hit the TP. 3. If you don't get your 100 pips profit at (26) or before, you have to open the x4 Hedge @9120 ... Then, the x8 @9060.
hi Kfx, i am confused.
Quote
2. When you start the x2 Hedge, you have to open a sell every time the last sell or sells hit the TP.
is that means you can only have 1 x2 sell at any time?
  • #252
  • Aug 6, 2014 11:20am Aug 6, 2014 11:20am
Quoting GoldenEA
{quote} hi Kfx, i am confused. {quote} is that means you can only have 1 x2 sell at any time?
No, it means you open x2 sell every time you close 1 or a group of 2 or 3, until get you 100 pips profit.
  • #253
  • Aug 6, 2014 11:22am Aug 6, 2014 11:22am
Quoting Kfx
{quote} Of course yes .... Now when it has happened you see that is a little peak, but before forming this candle, do you have a crystal ball to see if that will be a little peak or a big up trend??
The answer couldn't be clearer.. thank you very much.. you hit the nail brother

Happy Trades
Focus only on what truly matters!
  • #254
  • Aug 6, 2014 11:53am Aug 6, 2014 11:53am
Need another confirtation for lot multiplier

is the x4 lots correct or not ...

Thanks in advance
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  • #255
  • Aug 6, 2014 11:54am Aug 6, 2014 11:54am
Hi Kfx

I'm also developing grid strategies for a while, and its inspiring to see an other perspective on the subject. Its an interesting variation. Until now I only used one hedge position, if the price happens to leave the range I put the grid on, but the possibility of a multi-hedge was always in my mind.

The problem is always the fragile nature of grids, and that the loss with a diluted position rises exponentially. I think I get what you came up with, but honestly I still don't see what happens when the 2x buys that should hedge the 1x sells get in trouble. I didn't read all the comments, but most pictures you posted, the price went in favor of the bigger positon so you could close in profit. But what if its not? You'll start opening 3x sells?

The other thing is everyone seems to start and test it manually, which doesn't make much sense. If you don't have it yet, I can make an EA with the given rules, just can't promise I could understand everything correctly for the first time.

Cheers,
Delfin
  • #256
  • Aug 6, 2014 12:03pm Aug 6, 2014 12:03pm
last updating GBPNZD for today

Attached Image (click to enlarge)
Click to Enlarge Name: ScreenHunter_65 Aug. 06 18.31.jpg Size: 289 KB


report:
3 sell at TP (rectangle 1) = +60
1 sell at TP (rectangle 2) = +10
1 sellx2 at TP (rect.3) = +20
1 buyx1 (point5) close at point 13 = -100
1 buyx1 (point8) close at point 13 = -90
1 buyx1 (point9) close at point 13 = -80
1 sellx2 (point10) close at point 13 = +120
1 sellx2 (point11) close at point 13 = +100
1 sellx2 (point12) close at point 13 = +80

tot= +120 pips!
  • #257
  • Aug 6, 2014 12:07pm Aug 6, 2014 12:07pm
Quoting xlcharly
last updating GBPNZD for today {image} report: 3 sell at TP (rectangle 1) = +60 1 sell at TP (rectangle 2) = +10 1 sellx2 at TP (rect.3) = +20 1 buyx1 (point5) close at point 13 = -100 1 buyx1 (point8) close at point 13 = -90 1 buyx1 (point9) close at point 13 = -80 1 sellx2 (point10) close at point 13 = +120 1 sellx2 (point11) close at point 13 = +100 1 sellx2 (point12) close at point 13 = +80 tot= +120 pips!

Good work
  • #258
  • Aug 6, 2014 12:10pm Aug 6, 2014 12:10pm
Quoting ckikadikoi
{quote} Good work
  • #259
  • Aug 6, 2014 12:14pm Aug 6, 2014 12:14pm
max daily DD=-20 pips (see white arrow)

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  • #260
  • Edited Aug 7, 2014 7:39am Aug 6, 2014 12:41pm | Edited Aug 7, 2014 7:39am
Edited: Image has changed again, please jump to this post: http://www.forexfactory.com/showthre...37#post7657937

Hi All,

I tried to prepare a road map for coding purpose and also to make the learning process of MGH theory easier.

It still is not finished (consists only from step 1x) and also needs to be checked if I did any mistakes.
(Actually I wanted to trigger something in minds of those who are able to write EA code for MT4.)

Many Thanks
Attached Image (click to enlarge)
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