MGH System (Martingale Grid & Hedging) | Page 26 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Simply "grid" system, no hedge, no martingale 9 replies

ECN && STP && Scalping && Hedging - Broker Review - Oct 2009 24 replies

Martingale, Reverse Martingale, Modified Martingale, Maths 1 reply

Simple grid manual system without martingale 8 replies

Grid, Burst Grid, Grid Risk and Grid Profit 1 reply

Attachments: MGH System (Martingale Grid & Hedging)
Exit Attachments

MGH System (Martingale Grid & Hedging)

  • #501
  • Aug 27, 2014 4:14pm Aug 27, 2014 4:14pm
Quoting spyderman
Guys and Gals, I'm probably not going to make a lot of friends with this post, but I think it needs to be said. Many on here keep asking for the this and that to be spelled out, or re-written or graphed out so that they can understand it. This is a complex trading methodology. It's not something you can just breeze through and get the first time. Or it's certainly not something I would recommend for novice traders. Having said that, everything you need to understand is already in the thread. Just keep going over it. Now, true, there may be modifications...
I concur with Spyderman. Also, I prefer not to confuse the original thread by repeating my "brainstorming" ideas mentioned before (under the name FxMasterGuru), especially that these ideas have not been tested yet. (For those who are interested can look it up in Post #367: http://www.forexfactory.com/showthre...99#post7662999).
  • #502
  • Aug 27, 2014 9:30pm Aug 27, 2014 9:30pm
Quoting spyderman
Guys and Gals, I'm probably not going to make a lot of friends with this post, but I think it needs to be said. Many on here keep asking for the this and that to be spelled out, or re-written or graphed out so that they can understand it. This is a complex trading methodology. It's not something you can just breeze through and get the first time. Or it's certainly not something I would recommend for novice traders. Having said that, everything you need to understand is already in the thread. Just keep going over it. Now, true, there may be modifications...
I just hope people who understand this method, and caring people to can help non-English native speakers people, can only rely on google translate reading.

I know, want to organize a systematic and complete reading material, is very time-consuming and effort to do.
If someone is willing to do this, it will be an admirable thing.

thanks
zzd
  • #503
  • Aug 28, 2014 9:46am Aug 28, 2014 9:46am
congratulations!! i'ts very interesting system, today I've been testing manually the EU, GU and GJ and the truth is that it has been profitable in 3 pairs, manually is a bit difficult to test the system, but with and EA could be applied in several pairs.
sorry for my English.
  • #504
  • Aug 29, 2014 9:10am Aug 29, 2014 9:10am
Quoting Paracelsus
{quote} @Kfx I think this one is very promising, so in your place I would concentrate on "perfecting" this one. At least that is what I am going to do using the mentioned "modified version" (trend direction reentries and keeping original TP). Also, one more idea: Taking profits and reentering with the same lot size at each grid-step burns up lots of spreads and commissions, which add up. To avoid "feeding the beasts" (i.e. the brokers) excessively repeated reentries, I suggest NOT TO CLOSE the very first trades of each smaller batches, but letting...
Hi Paracelsus.

I been thinking in your great idea but I have some questions.

How many trades you keep it open?

When you close all the trades?

What happen if you have many trades opened, the price reversal and you have to open the next hedge level?

Can you post a pic with an example?

Thanks.
  • #505
  • Aug 29, 2014 9:11am Aug 29, 2014 9:11am
Quoting GoldenEA
check my explorer. one week demo, 4.6% return.
Great work GoldenEA
  • #506
  • Aug 29, 2014 9:17am Aug 29, 2014 9:17am
Quoting profitfarmer
{quote} Hi Kfx,Sorry to ask, but I havent seen in your OP what determinate the start of trading the grid....ie. just crossing any gridline?I did play around some in the past in Martingale and grid, and I found that the probability can dramatically raised if the grids starting point a higher probability chart entry.I prefer extremely overbought/oversold areas defined by RSI, on 1H/4H or even daily chart...if all the mentioned timeframes line up then it is Jackpot usually! Rinse and repeat.As someone mentioned above, there is always a chance with...
Hi profitfarmer.

Yes. As you say there is not entry criteria in this system, just open a trade when price touch a grid level (with the original version open the first trade against the trend and with the ForexMasterGuru (Paracelsus) version go with the trend.
  • #507
  • Aug 29, 2014 9:22am Aug 29, 2014 9:22am
Quoting yczzd
{quote} Hi Kfx： Thanks for your hard work， I look forward to hearing your good news as soon as possible。 Also, please forgive my bad English。I very much hope that you can keep it simple and clear description of your improved version, as you did in the first post. very thanks. zzd
Hi yczzd.

I keep working on it, but nothing relevant at the moment.

Languaje is a problem for me to so if there are spanish or portuguese speakers members that have some questions I can reply you by PM.
  • #508
  • Aug 29, 2014 9:33am Aug 29, 2014 9:33am
Quoting spyderman
Guys and Gals, I'm probably not going to make a lot of friends with this post, but I think it needs to be said. Many on here keep asking for the this and that to be spelled out, or re-written or graphed out so that they can understand it. This is a complex trading methodology. It's not something you can just breeze through and get the first time. Or it's certainly not something I would recommend for novice traders. Having said that, everything you need to understand is already in the thread. Just keep going over it. Now, true, there may be modifications...
Hi spyderman.

I agree with you on "everything you need to understand is already in the thread". But I also understand that there are many inexperienced people and with difficulty understanding the language.

I Always will be grateful to ATA for post his schemes. I think even as a rookie, with this schemes, the system was totally clear.

And of course I have to thank you to you, to Paracelsus, GoldenEA, etc ... for your big contributions in this thread.
  • #509
  • Aug 29, 2014 9:35am Aug 29, 2014 9:35am
Quoting Clipi
congratulations!! i'ts very interesting system, today I've been testing manually the EU, GU and GJ and the truth is that it has been profitable in 3 pairs, manually is a bit difficult to test the system, but with and EA could be applied in several pairs. sorry for my English.
Hi Clipi.

I hope you have good results

Saludos
  • #510
  • Aug 29, 2014 9:44am Aug 29, 2014 9:44am
Quoting Kfx
{quote} Hi Paracelsus. I been thinking in your great idea but I have some questions. How many trades you keep it open? When you close all the trades? What happen if you have many trades opened, the price reversal and you have to open the next hedge level? Can you post a pic with an example? Thanks.
@Kfx
Yes, the concept is easier in theory than in practice, but I think it is possible to replicate the original strategy's concept without going in and out of trades at each grid level and losing spread+commissions during a strong uni-directional move.

Again, just as a brainstorming idea (i.e. not tested) applied to the original (not modified) strategy:

1. In case price runs fast in one direction IMMEDIATELY after the very first trade of each batch ("H1", H2, H4, H8, etc.), I would let these single trades run as far as they go.

2. Sooner or later the price will retrace at least 10 pips from the last touched (i.e. highest or lowest) grid level, when Trade2 is added (as per original strategy). At this point a TP is established for Trade1 and Trade2, which will be exactly at the very last touched grid level.

This way the strategy could save lots of spreads + commissions on "Trade1" positions (in any Hedge batch, incl. "H1") without affecting the profits banked after Trade2 or Trade3 added. Considering 0.4 pips ECN spread + 0.6 pips commission with 10 pips grids, it is a 1 pip, i.e. 10% cost saving, i.e. 10% more profit.
  • #511
  • Aug 29, 2014 10:18am Aug 29, 2014 10:18am
Quoting Paracelsus
{quote} @Kfx Yes, the concept is easier in theory than in practice, but I think it is possible to replicate the original strategy's concept without going in and out of trades at each grid level and losing spread+commissions during a strong uni-directional move. Again, just as a brainstorming idea (i.e. not tested) applied to the original (not modified) strategy: 1. In case price runs fast in one direction IMMEDIATELY after the very first trade of each batch ("H1", H2, H4, H8, etc.), I would let these single trades run as far as they go. 2. Sooner...
I think I understand.

So in a strong price move in your favor, you keep open only the first trade (of 3) of each grid and let it run until price retraces 10 pips.

If I understand correctly, you still open the same number of trades, but you save commision, spread an slippages with the profit gained with the first trades???
  • #512
  • Edited 11:03am Aug 29, 2014 10:47am | Edited 11:03am
Quoting Kfx
{quote} I think I understand. So in a strong price move in your favor, you keep open only the first trade (of 3) of each grid and let it run until price retraces 10 pips. If I understand correctly, you still open the same number of trades, but you save commision, spread an slippages with the profit gained with the first trades???
Yes, that is correct.

As the enclosed screnshot shows (starting with a trend direction "H1/Trade1") the strategy could have saved 10 x spread+commission (not to mention slippages) and still profiting the same gross 110 pips.

"H1/Trade2" was entered after the first 10 pips pullback and TP was issued at the lowest grid level before Trade2 was activated. This method could be applied to each "Trade1" position of each H level, including the initial batch ("H1").

Attached Image (click to enlarge)
Click to Enlarge Name: 0828_MGH.jpg Size: 1.2 MB


As mentioned previously, I would favor giving an "extra grid" to TP after Trade2/Trade3 entries, which would have changed the outcome of the above trade as shown below. I need to emphasize that the overall profitablity of these modifications have not been confirmed.

Attached Image (click to enlarge)
Click to Enlarge Name: 0818_MGH_modified.jpg Size: 1.2 MB
  • #513
  • Aug 29, 2014 11:14am Aug 29, 2014 11:14am
Quoting Paracelsus
{quote} Yes, that is correct. As the enclosed screnshot shows (starting with a trend direction "Trade1") the strategy could have saved 10 x spread+commission and still profiting the same gross 110 pips. Trade2 was entered after the first 10 pips pullback and TP was issued at the lowest grid level before Trade2 was activated. This method could be applied to each "Trade1" position of each H level, including the initial batch ("H1"). {image} As mentioned previously, I would favor giving an "extra grid" to TP after Trade2/Trade3 entries, which would...
Good example in a very favorable situation .... But

What happen if you close trade2 (+20 pips) and trade3 (+10 pips) and the price retraces to open a new Hedge? ....

Would we be losing the 30 pips that we could have won if we had closed trade1 as usual?.

And in the case of close at 10 pips retrace we only win 20 pips from trade1?
  • #514
  • Aug 29, 2014 11:59am Aug 29, 2014 11:59am
Quoting Kfx
{quote} Good example in a very favorable situation .... But What happen if you close trade2 (+20 pips) and trade3 (+10 pips) and the price retraces to open a new Hedge? .... Would we be losing the 30 pips that we could have won if we had closed trade1 as usual?. And in the case of close at 10 pips retrace we only win 20 pips from trade1?
I am not sure if I understood the question well. It it was referring to "giving an extra grid to TP", yes it is risky, and historical analysis needs to be done about it. The question is whether the benefits of waiting for an "extra grid" profit would outweigh the risk of not banking smaller profits and getting stuck in multiple Hedges.

If the questions were referring to closing&opening Trade1 positions at each grid level, I ask you to give a screenshot example and I will try to prove on the same screenshot that the final outcome (i.e. profit) would be the same (except for less costs).

According to my calculations, letting "Trade1" positions "ride" the "trend-waves" would not affect the overall P&L outcome of the strategy. (It would only result in smaller balance increases and smaller equity drawdowns, which would completely neutralize each other.)
  • #515
  • Aug 29, 2014 12:24pm Aug 29, 2014 12:24pm
Just an update on my pairs going into the weekend.

Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD!H1.png Size: 77 KB


Attached Image (click to enlarge)
Click to Enlarge Name: gbpjpy!h1.png Size: 86 KB


So Paracelsus...if I'm reading you right, you're saying (taking my EurUsd for example) I wouldn't close each of those last 3 short entries but would now have one sitting at about 150 pips profit (50 pip grid). Then if price retraced 50 hit trade 2 with standard TP for both?
  • #516
  • Aug 29, 2014 12:32pm Aug 29, 2014 12:32pm
Quoting Paracelsus
{quote} I am not sure if I understood the question well. It it was referring to "giving an extra grid to TP", yes it is risky, and historical analysis needs to be done about it. The question is whether the benefits of waiting for an "extra grid" profit would outweigh the risk of not banking smaller profits and getting stuck in multiple Hedges. If the questions were referring to closing&opening Trade1 positions at each grid level, I ask you to give a screenshot example and I will try to prove on the same screenshot that the final outcome (i.e. profit)...
Here my example ... Please comment.

http://oi58.tinypic.com/2a0houq.jpg
  • #517
  • Aug 29, 2014 1:00pm Aug 29, 2014 1:00pm
Quoting Kfx
{quote} Here my example ... Please comment. {image}
Sorry, I made a mistake ... It is "Close Buy 2 and Buy 3" not "Close Buy 1 and Buy 2"
  • #518
  • Edited 2:04pm Aug 29, 2014 1:05pm | Edited 2:04pm
Quoting Kfx
{quote} Here my example ... Please comment. {image}
Sorry, I cannot comment on it as it would have played out differently for me.

Based on the original strategy (if I understood well) and simply by letting Level1 of each batch run until first retracement it would have given the following scenario for me:

Attached Image (click to enlarge)
Click to Enlarge Name: Aug 28.jpg Size: 508 KB


The same thing as above, but by opening each "Level1" in trend direction AND adding one more grid to TP (modified version):

Attached Image (click to enlarge)
Click to Enlarge Name: Aug 28 modified.jpg Size: 518 KB
  • #519
  • Aug 29, 2014 1:21pm Aug 29, 2014 1:21pm
Quoting Paracelsus
{quote} Sorry, I cannot comment on it as it would have played out differently for me. Based on the original strategy (if I understood well) and simply by letting Trade1 of each batch run until first retracement it would have given the following scenario for me: {image}
In my chart I opened and closed trades according your modification.
  • #520
  • Aug 29, 2014 1:31pm Aug 29, 2014 1:31pm
Quoting Paracelsus
{quote} Sorry, I cannot comment on it as it would have played out differently for me. Based on the original strategy (if I understood well) and simply by letting Trade1 of each batch run until first retracement it would have given the following scenario for me: {image}
Checking your chart, you have some mistake ... You open 2 sells in the same level (1.3180) instead open a new one (the third) @1.3190. So Hedge x2 is worng too.
2 traders viewing now