A few weeks ago, I mentioned I was working on settings to lower the DD that can occur sometimes.
Like I use to say, not IF but WHEN it comes...
As a startingpoint I used the system I described earlier, trade the H4 and D1 timeframes divided in 3 groups by their respective 6th-distance on the H4. Each group gets their own lotsize, MarketDistancePips etc. all to try to lower the exposure on the more volatile pairs [greater recoverydistance] and maximise the profit on the less volatile pairs [higher lotsizing]. Goal was to have all pairs contribute equally to the balance, since the margin they 'eat' is the same.
The 24th of November I started a fresh demo, and set it up like I described above.
The only difference being, I just let PoS trade H4, with no magic#, and no comment so I can enter trades manually and have PoS handle them as being it's own. This way I can decide for myself if I want to jump on the D1 train, or not if it's in the same direction as the H4.
Like I wrote a few posts before, I like to take profit regularly, and enter again at the same price.
This takes some elbow grease to enter all trades, but in the end it is worth it.
This way I booked nearly 1.000 pips on a 400 pip run, AND have another ~150pips floating positive.
[see attached chart]
Now for the lowering the DD part; I once read about a guy that had a huge sum of open profit. He opened long trades at the bottom [duh] and shorts at the top [double duh] of the higher timeframes. By letting them open, he ended up with a hedged position, with a locked in floating profit of 1.000's of pips.
Somewere it struck a nerve in my brain [might have been the only usefull one] and I remembered it at the time I started this demo. I let PoS do it's thing, but remove the TP from the highest/ lowest trade and let it serve as a cushion for the other trades of the pair.
Like in the below EURCAD chart, it takes a BIG retrace to get in negative float with the current 270+pips floating cushion. I have achieved this on a few pairs already. I -might- close these cushion trades in the future, maybe at the opposite signal, I will see when time comes.
EURCADH4.png
Below the open trades and the booked profits;
dashboard.png
The account can be viewed with Fxblue;
https://www.fxblue.com/users/2099138
It's worth noting the 95,7% winrate...
My cent-account trading PoS in 'my' old way just reached 2K from the original $400 deposit. As soon as the equity reached 3K I will close all and transfer it to GlobalPrime, and replace above's demo with a live account.
At least I have the settings right by that time....
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