DislikedDon't confuse the following comments with negativity - I'm heavily into grid strategies and would love to see this work out. The fact of the matter is this: writing an EA that follows the strategy shown in the 'part 2' video is not that difficult - the issue is that the strategy (as described) simply won't work. If you study the 'part 2' video then you'll see that everything's great as long as price trends upward (or bounces within a very small channel), but everything unravels pretty quickly as soon as price begins to drop below the lowest profitable...Ignored
I disagree. If you look at "Video Part 2" more carefully you can see that the EA is ABLE come out profitably from heavy DD.
As I have already shown in my Post No. 138 a scenario (see attached below) in which the EA is in -$30/pips NET LOSS - due to the phenomena you have mentioned - but still, it can come out successfully by the end of the Video when price is NOT TRENDING... Which is 70% of the time...
Bottom line:
1. When the market is trending (30% of the time) net floating losses WILL accumulate. No question about it.
2. Hedging will soften the - unavoidable - negative impact of the trends, but of course will not eliminate it. Otherwise it would be the "Holy Grail".
And most importantly:
3. Net profits AND closure of the most toxic trades happen when the market is NOT trending; i.e. 70% of the time.
In my opinion the genius ("edge") of the strategy is taking advantage of this 70% "non-trending" time of the market while being able to survive the trending periods.
This scenarios is at 8:14 of Video Part 2:
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