Impressive results FxMasterGuru/Paracelsus! I've been sort of lurking in this thread. So from what I've gathered, would I be correct to say that this strategy can otherwise be identified as a trend-based strategy that uses cost-averaging (the grid), that uses martingaling and hedging as exit strategy? I most certainly agree with Paracelsus that the sole purpose of Martingale and Hedge are to get the heck out as fast as possible, while minimizing the "Death Trail" so you aptly named. My questions are: 1.) From your experience, is using only a 200EMA...
Yes, your observations and summary are excellent: in its "modified" version MGH is a "trend-based strategy that uses cost-averaging system that uses martingaling and hedging as exit strategy". I have to emphasize that in its modified form, as in the original version martingaling and hedging were major profit makers. In the modified version their role has been reduced simply as an "exit strategy" and to recover ECN commission costs.
Response to your 1st question: Probably there are better trend indicators than H1 EMA200, but as far as I see the strategy is so robust, and market movements are so random, that practically it does not matter in which direction Batch1 is opened. Actually it is the beauty of this strategy.
Concerning your recommendation: Yes, it would exponentially increase profits, however it raises an important question: What if the market makes a sudden and sharp turn (e.g. extreme news) while pyramiding?
Well, of course, the strategy should get ready to exit with Hedge and Martingale, which means that a larger hedge multiplier should be employed. The issue with a larger multiplier is that it has a snowball effect. If the market just did a fake reverse breakout, then the strategy would need to "RE-HEDGE" with an exponentially larger lot number. But what if this next breakout turns out to be fake, too. Again, MGH needs to hedge with exponentially higher lots.
Your recommendation should work out well with higher profitability, but for a "price". Namely: increased risk. Martingales are extremely risky to start with, so when "tweaking" with the original strategy of Kfx, my goals were very simple: to reduce risk as much as possible while preserving some profitability and to make it easy for the strategy to find "escape routes" to avoid the "Death Trail".
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By the way, nice further developments after the breakout:
