Automatic Loss Recovery System (ALR) - read this first

kvhutch · Post by **kvhutch** » Sat Aug 23, 2014 5:08 pm

Forgive me if my maths is out and please put me right if I'm wrong - not too bright in the maths department

:

ALR Calculator II is the non-hedged strategy.
On ALR Calculator II, the loss on a position is from the trade initiation to the start of the ALR zone e.g on tab 'SL& TP', the first loss is calculated as:
(B25*A2) - and subsequently subtracted from the winning side

On the risk tabs, e.g. 'Set Risk 10 turns', the loss on the same position is calulated as:
B25 * (B2 + A2)

Looks like the Risk tabs are still calculating SL with the old 'hedged' formula or am I not reading it correctly? Do I have the latest version of the calculator?

Cheers

blazecrown · Post by **blazecrown** » Sun Aug 24, 2014 2:35 am

I believe I understand what the problem is and how it should be fixed. But can you please share the statements, incl. date and time (and time zone or broker) for the trades?

hi TheInsider, i already changed the S/L and T/P parameters after i removed the EA... but here are the details of the ALR transactions before i removed the EA from the chart (FxPro Demo, New York time):

1st transaction: Buy 0.15 lot @GBPJPY 170.980, Time: 2014.08.14 18:05:13, ALR Zone: 34.7 pips, T/P: 100 pips
2nd transaction: Sell 0.32 lot @ 170.633, Time: 2014.08.15 18:54:03 (left this open on a weekend)
3rd transaction: this is where the gap happened. a pending Buy Stop @ 170.980

blazecrown · Post by **blazecrown** » Sun Aug 24, 2014 3:11 am

Naming it "XYZ" does not make sense. I renamed it to "Profit", which is what it is - amount in profit that is added to the breakeven. In any case it's in amount (USD)

hi TheInsider, thank you for your clarification...

I only have it in the Excel-file but have not updated the modded version of ALR EA here. Instead I have rewritten the ALR manager from scratch and added lots of options, incl. compensation for costs (commission and swap), option for backtesting and forward testing on specific dates/times, different kind of trailng (static pips, percentage, fractal, etc) of initial order #0 (to prevent ALR to start, which must be the goal; ALR is management of open negative position), nice graphic presentation, etc. And am developing it further - using dynamic SL and TP, management of baskets of open trades, etc.

wow!!! a (working) trailing ALR Trade Manager EA would be super awesome... can't wait for you to share this EA with us...

Fibotrend · Post by **Fibotrend** » Mon Aug 25, 2014 8:07 am

I only have it in the Excel-file but have not updated the modded version of ALR EA here. Instead I have rewritten the ALR manager from scratch and added lots of options, incl. compensation for costs (commission and swap), option for backtesting and forward testing on specific dates/times, different kind of trailng (static pips, percentage, fractal, etc) of initial order #0 (to prevent ALR to start, which must be the goal; ALR is management of open negative position), nice graphic presentation, etc. And am developing it further - using dynamic SL and TP, management of baskets of open trades, etc.

Really looking forward to testing the trailing version

TheInsider · Post by **TheInsider** » Mon Aug 25, 2014 11:37 pm

blazecrown » Sun Aug 24, 2014 3:35 am wrote:
I believe I understand what the problem is and how it should be fixed. But can you please share the statements, incl. date and time (and time zone or broker) for the trades?
hi TheInsider, i already changed the S/L and T/P parameters after i removed the EA... but here are the details of the ALR transactions before i removed the EA from the chart (FxPro Demo, New York time):

1st transaction: Buy 0.15 lot @GBPJPY 170.980, Time: 2014.08.14 18:05:13, ALR Zone: 34.7 pips, T/P: 100 pips
2nd transaction: Sell 0.32 lot @ 170.633, Time: 2014.08.15 18:54:03 (left this open on a weekend)
3rd transaction: this is where the gap happened. a pending Buy Stop @ 170.980

I did a backtest with my version of ALR Maneger (I will share it soon).

First, your initial Buy order at 2014.08.14 18:05:13 New York time = GMT - 4h = 22:05:13 GMT.
SL (aka ALR zone) = 34.7 pip, TP = 100 pip.

DukasCopy TickData (GMT)
Date Time, Bid, Ask
2014.08.14 22:05:09.479,170.968,170.994
2014.08.14 22:05:19.629,170.969,170.994

So the prices are not exactly the same.

In my test, the Buy order was opened at 22:05 with the Ask price 170.994, and a total of 3 positions (the initial position and 2 hedged positions was executed, excluding the 4th order that was opened as a pending order but then deleted at the same time as all market orders was closed.

But my test shows a different lot size increment: 0.15, 0.26, 0.26, 0.35 based on...

Profit = 50
SL = 34.7 pip ( aka ALR zone )
TP = 100 pip
Commission = 10 per lot
Tickvalue = 0.9696

The lot sizes can also be confirmed with my ALR-Calculations_v_1.1.xls

However, the lot size increment will change if the Profit is set to another value.

Here all 3 orders was closed with a net profit of $38.62

In my ALR TradeManager it doesn't matter if there's a price gap, because once the basket are in profit (or as close to Breakeven as possible), any hit of SL or TP will close the entire basket of open market orders and delete any pending order.

blazecrown · Post by **blazecrown** » Tue Aug 26, 2014 6:25 am

In my ALR TradeManager it doesn't matter if there's a price gap, because once the basket are in profit, any hit of SL or TP will close the entire basket of open market orders and delete any pending order.

great work TheInsider... however,in your new ALR TradeManager, may i know what will be the result if a particular pending transaction which happens to be in a gap (therefore will always hang as a pending transaction), is the one that the ALR EA needs to make the basket in profit...

please correct me if i'm wrong, but in your example it looks like your #2 and #4 transactions are both short positions, which if are either closed or not transacted, will still make the basket in positive profit at 171.977... what will happen if instead, #1 and #3 transactions are both short positions; and #2 and #4 transactions are both long positions and either of them is in a gap (or in pending transaction)? looks like in this scenario the basket will be in net loss at 171.977...

TheInsider · Post by **TheInsider** » Tue Aug 26, 2014 10:12 am

blazecrown » Tue Aug 26, 2014 7:25 am wrote:
In my ALR TradeManager it doesn't matter if there's a price gap, because once the basket are in profit, any hit of SL or TP will close the entire basket of open market orders and delete any pending order.
great work TheInsider... however,in your new ALR TradeManager, may i know what will be the result if a particular pending transaction which happens to be in a gap (therefore will always hang as a pending transaction), is the one that the ALR EA needs to make the basket in profit...

please correct me if i'm wrong, but in your example it looks like your #2 and #4 transactions are both short positions, which if are either closed or not transacted, will still make the basket in positive profit at 171.977... what will happen if instead, #1 and #3 transactions are both short positions; and #2 and #4 transactions are both long positions and either of them is in a gap (or in pending transaction)? looks like in this scenario the basket will be in net loss at 171.977...

New positions are always opened in the opposite direction, so if the first positions is a Buy then the sequence will be Sell, Buy, Sell etc, and if the first positions is a Sell the the sequence will be Buy, Sell, Buy, etc..

So it will never happen that this alternate Buy-Sell-Buy-etc sequence changes.

If I run the same test again, but now starting in the opposite direction, I will get the result below. A profit of $19.87.

So it doesn't matter which direction the initial order is opened at, the total basket will always close in profit (or very close to a Breakeven). Here, starting with a Sell instead requires more hedged orders (6 including the initial order).

blazecrown · Post by **blazecrown** » Tue Aug 26, 2014 11:25 am

So it doesn't matter which direction the initial order is opened at, the total basket will always close in profit (or very close to a Breakeven). Here, starting with a Sell instead requires more hedged orders (6 including the initial order).

hi TheInsider, very interesting how your new ALR TradeManager EA modifies its transactions to achieve profit... many of us will be very curious to try it ourselves... i'll be particularly interested to see how it can overcome gaps when they happen... how soon can we try it? with the trailing ALR?...

Lagrange · Post by **Lagrange** » Tue Aug 26, 2014 6:26 pm

Hi traders,

I just could not resist to do a careful test on a live account with very,very small lotsizes, to see how brokers react on these EA's / strategies.
I have several live accounts with different brokers (ECN, STP, etc.)
ALR 1 and especially ALR 2 are nice and interesting strategies, but I noticed sometimes incredible wide spreads with stoporders being placed. 25-35 pip spread did happen already. Mostly during Asian session, crosspairs.
So be careful choosing pairs etc. If an ALR zone is active, you simply can not skip news and Asian sessions etc where brokers play their games. Spreads can be terrible, next to the gap issue we noticed.

cheers L.

blazecrown · Post by **blazecrown** » Tue Aug 26, 2014 9:43 pm

Hi traders,

I just could not resist to do a careful test on a live account with very,very small lotsizes, to see how brokers react on these EA's / strategies.
I have several live accounts with different brokers (ECN, STP, etc.)
ALR 1 and especially ALR 2 are nice and interesting strategies, but I noticed sometimes incredible wide spreads with stoporders being placed. 25-35 pip spread did happen already. Mostly during Asian session, crosspairs.
So be careful choosing pairs etc. If an ALR zone is active, you simply can not skip news and Asian sessions etc where brokers play their games. Spreads can be terrible, next to the gap issue we noticed.

cheers L.

whoa!... 25-35 pip spreads could certainly mess up the ALR execution... Lagrange, off topic, but quickly, which ECN, STP brokers are these?