There is an experimental version in post 1, inspired by this pm from cyberevil:
cyberevil wrote:Hello Steve!
A buddy of mine send me link to these, I think you'll find the logic/idea behind it is quite solid. the programmer on the other hand are bit weak to bring it to life.
Ignore the words "no loss strategy" it is not... and don't look at the martingale aspect either, we both know that's not going to work in the long run.
Part 1:
[youtube]
https://www.youtube.com/watch?v=gG9j8s1AtoI[/youtube]
Part 2:
[youtube]
https://www.youtube.com/watch?v=S8E3xtR2omA[/youtube]
Read more about it here but I must warn you. It'll give you a headache at first because the OP's native language along with others is not English.
http://www.forexfactory.com/showthread.php?t=583322
I tested the ea they produced so far and it looks promising but not as good as ours. Anyway that's all besides the point. I got to thinking if there was a way for us to use this logic into our EA to close profitable trades like this one does to minimize the draw down.
Try it out if you have few hours to burn or if you're having hard time sleeping one of these nights. hahaha
The part 1 video shows how the trader starts with a sell trade. If the market then rises, he sends a new trade with each $1 of loss. Imagine the grid of sells is stacked 10 high, then the trade at the bottom of the pile is -$10. When the market starts to fall eventually, the profit of the top few trades will become >= to the loss of the biggest loser at the bottom of the grid, so the winners and the loser can be closed.
The flaw in this is obvious but the designer of this system has a part 2 that deals with it. I can make no sense of the part 2 video and I am not plowing through a 40 page thread at FF, so it would be great if anyone can provide a translation.
I have applied this to the Stop_And_Limit_Orders trading method here and the inputs are set up to go ootb. The new inputs are:
- UseOffsetWinnersAndLosers: switches this feature on and off.
- NoOfOpenTradesToStartOffset: the number of trades in the grid at which to start looking for offseting opportunities
Bloop spotters, the function that does the calculating is
bool CanTradesBeOffset() starting at line 4676. The function is called at line 4675.
I have turned off closure at a yellow wavy line. A grid of losing trades that enters a range may exit it in our favour, so we want to leave the trades alone until we know. If HGI subsequently shows we have left the range in the opposite direction to our trades, then the CloseOnOppositeSignal function will close the position; we take the hit and move on.
It is possible to apply this idea to hedged positions but the code will be much more complicated. Let's establish that the function works properly first, then apply it to the Stop_Orders_Only method later on.
Have fun playing with it when the markets reopen.
Read the effing manual, ok?
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