renko bars could help 
"To get rich you must have a lot of money" - Joe Abandoned Mine
MGH System (Martingale Grid & Hedging)
martingale (long-term-suicide for me) or hedge strategies? renko charts my friends... there is no easiest way to visualize what you trying to do...my opinion... {image}
I also like renko charts and like this idea
I will be test it over the weekend.
Have a nice weekend all!!!
- #364
- Aug 8, 2014 12:27pm Aug 8, 2014 12:27pm
- Joined May 2014 | Status: Full Time Trader | 27,148 Posts
{quote} {image}
Glad to see that we have some humorous people here
Happy Trades
Focus only on what truly matters!
- #366
- Aug 8, 2014 5:14pm Aug 8, 2014 5:14pm
- Joined Nov 2010 | Status: Snaggin' Some Pips | 2,159 Posts
a little treat for you guys... this indicator generates an offline chart... very good to have some ideas about grid or hedge strategies different from renko charts but the same ideia... go nuts...
Have you checked with the thread OP before introducing totally new ideas to his thread.
- #368
- Edited 6:14am Aug 9, 2014 2:33am | Edited 6:14am
- | Commercial User | Joined Jun 2014 | 132 Posts
August 8th, 2014:
MODIFIED First Batch entry (in "trend direction") AND not moving TP levels:
ORIGINAL First Batch entry (in original "countertrend direction") AND moving TP to Level1 after Level2 entry:
MODIFIED First Batch entry (in "trend direction") AND not moving TP levels:
ORIGINAL First Batch entry (in original "countertrend direction") AND moving TP to Level1 after Level2 entry:
- #371
- Aug 9, 2014 5:49am Aug 9, 2014 5:49am
- Joined Nov 2010 | Status: Snaggin' Some Pips | 2,159 Posts
- #375
- Edited 10:00am Aug 9, 2014 9:45am | Edited 10:00am
- | Commercial User | Joined Jun 2014 | 132 Posts
I was curious to see how the "modified version" would have behaved on June 20th, 2013, as this and the following days were used as an example of "Hedgex32", i.e. it was a challening period for the strategy.
Well, if we would have been satisfied with a 100 pips gain, the strategy would have closed all trades at the top of the trend with 140 pips profit:
In case 100 pips were not enough, the modified version would have given another chance to close with 340 pips at the bottom of the countertrend:
So the TP is another crucial issue, as not being satisfied with 100 or 300 pips profit may lead to additional major hedges, DDs and strain on the leverage.
Well, if we would have been satisfied with a 100 pips gain, the strategy would have closed all trades at the top of the trend with 140 pips profit:
In case 100 pips were not enough, the modified version would have given another chance to close with 340 pips at the bottom of the countertrend:
So the TP is another crucial issue, as not being satisfied with 100 or 300 pips profit may lead to additional major hedges, DDs and strain on the leverage.
- #376
- Edited Aug 10, 2014 12:15am Aug 9, 2014 11:53am | Edited Aug 10, 2014 12:15am
- | Commercial User | Joined Jun 2014 | 132 Posts
Short term results depend a lot on where we start the series. As an experiment I started with August 4th (Monday) with the "modified" settings.
Results were rolled over from one day to another, and on the below chart of August 8th the week's summary is shown: +230 pips equity gain for the week, using no more than Hedgex2.
MODIFIED First Batch entry (in "trend direction") AND not moving TP levels:
Results were rolled over from one day to another, and on the below chart of August 8th the week's summary is shown: +230 pips equity gain for the week, using no more than Hedgex2.
MODIFIED First Batch entry (in "trend direction") AND not moving TP levels:
- #377
- Aug 9, 2014 1:30pm Aug 9, 2014 1:30pm
- Joined Nov 2010 | Status: Snaggin' Some Pips | 2,159 Posts
Well, I backtested FX's idea on the EurUsd from Jan 1 of this year to present.
I used a 50pip grid instead of the 10 as that is what I am using.
The results were interesting as well as a bit surprising.
Using Kfx's original methodology, we would net 5600 pips for the current year. We can balance that nice return with some good sized drawdown as we got to the x16 grid sizing.
Now using the mod that FX is talking about over the same time period, we only netted 2700 pips.
Doesn't sound to good. The surprising part though is that it never went past the x2.
So lower pip output, but with much less risk and DD.
I'll go over my charts again to make sure that's right but I believe so.
Now why would we have those differences.
I think the main difference is with the TP not being moved to BE after the first entry of a grid (I don't think the direction of a series first trade will have much impact over all). This results in fewer grids being traded due to the TP being further away, so that means fewer pips overall.
Plus, with higher grid multiples, you have some big pip winners that just aren't there at the x1 and x2 level...with their corresponding higher DD.
As far as the multipliers staying low, I think that is due primarily to the greater payoff from not moving the TP on those orders. Now on a 3 trade grid you get 300 pips instead of 150 and on a 2 trade grid you get 150 pips instead of 50. That enables you to close those series much faster as the greater payoff (say on the x2 grid) will more quickly erase the running loss on the x1 grid.
Will be interesting to see what Kfx thinks about this.
I used a 50pip grid instead of the 10 as that is what I am using.
The results were interesting as well as a bit surprising.
Using Kfx's original methodology, we would net 5600 pips for the current year. We can balance that nice return with some good sized drawdown as we got to the x16 grid sizing.
Now using the mod that FX is talking about over the same time period, we only netted 2700 pips.
Doesn't sound to good. The surprising part though is that it never went past the x2.
So lower pip output, but with much less risk and DD.
I'll go over my charts again to make sure that's right but I believe so.
Now why would we have those differences.
I think the main difference is with the TP not being moved to BE after the first entry of a grid (I don't think the direction of a series first trade will have much impact over all). This results in fewer grids being traded due to the TP being further away, so that means fewer pips overall.
Plus, with higher grid multiples, you have some big pip winners that just aren't there at the x1 and x2 level...with their corresponding higher DD.
As far as the multipliers staying low, I think that is due primarily to the greater payoff from not moving the TP on those orders. Now on a 3 trade grid you get 300 pips instead of 150 and on a 2 trade grid you get 150 pips instead of 50. That enables you to close those series much faster as the greater payoff (say on the x2 grid) will more quickly erase the running loss on the x1 grid.
Will be interesting to see what Kfx thinks about this.
- #378
- Aug 9, 2014 1:34pm Aug 9, 2014 1:34pm
- Joined Nov 2010 | Status: Snaggin' Some Pips | 2,159 Posts
- #380
- Aug 9, 2014 1:59pm Aug 9, 2014 1:59pm
- Joined Nov 2010 | Status: Snaggin' Some Pips | 2,159 Posts