stevehopwoodforex.com • Euro Grid by Dietmar

Author:

K-Lander [ Fri Mar 16, 2012 11:53 am ]

Post subject:

Re: Euro Grid by Dietmar

Hello Dietmar,
Just finished reading the two threads on your grid strategy. I think I read something somewhat similar in FF a while ago. As you said, this is a great strategy in strongly trending markets, but a range can hit you hard. I just calculated a bad scenario in which price goes up to the third level (let´s say Long3), then retraces down to Short 3, and then goes up again and reaches the TP level above Long 3. This would mean that we have triggered 4 Long1 + 4 Long2 + 4 Long3 + 4 Short1 + 4 Short2 + 4 Short3. The overal profit/loss of this combination would be as follows (where x = grid increment):

4 Long3 = +4x
4 Long2 = +8x
4 Long1 = +12x
4 Short1 = -20x
4 Short2 = -24x
4 Short3 = -30x
Total = -50x (a loss of 50 times the increment!)

This kind of loss just goes stratospheric if the market keeps ranging.

One way to reduce this would be shrinking the grid one increment by bringing the Long levels down one level (that is, replacing the 0 level with Long1, Long1 with Long2, and Long 2 with Long3) by entering the market right away instead of waiting for it to reach Long1 or Short1. The grid would look this way:

SL/TP
Long3
Long2
Long1
Short1
Short2
Short3
SL/TP

This shrinks the grid channel by one increment (thus resulting in a faster reach of one of the TP/SL levels) and brings the scenario described above to an overall loss of -30 instead of -50.

As I see it, the system should have a safety feature only allowing to trigger a user-defined number of trades, so as to put a limit to the loss. There will be a loss from time to time, but they would hopefully be outnumbered by the wins.

My coding skills are too basic to try to code this so I won´t be able to adapt the EA.

Regards,

K

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Author:	forextrader-radioman [ Thu Mar 15, 2012 10:50 am ]
Post subject:	Re: Euro Grid by Dietmar
WARNING! Over night and the early morning hours here in Europe there was a little "stress test" for the EA and Traders, be warned, there is a bug in the EA and that can have fatal results to your account. See screenshot(s). The EA set new pending orders not at the levels where the other pending orders are and so some pending orders can be triggered but without the proper reaction of the EA. It will not create new pending orders at the opposite side. Example here in my live account (Screenshots) There are for each level (Buy 1 to 3 and Sell 1 to 3) not one common level but two in place. Thats the bug. Because the EA does not "know" about one of those levels. Here the pending buy order at level 3 was triggered at 07:26 but the EA did not create new pending orders at all sell levels. So here now my only chance is, that price will move towards "north" until it is in profit. Otherwise the losses could be very huge. So be warned and do not trade with this EA in your live account until this bug is fixed! Greetings from here, Dietmar PS: I also see now, that those triggered level 2 trades at 06:31 and 06:34 where not recognized by the EA, the EA created no new pending orders at the sell side!!! And that happened at both buy levels of level 2 ... the "old" buy level 2 and the "new" buy level 2 So the bug is not about "forgetting one of two levels" but about forgetting all of set levels ... maybe because we have a new day? ... I do not know ...

Author:	forextrader-radioman [ Fri Mar 16, 2012 9:01 am ]
Post subject:	Re: Euro Grid by Dietmar
Update: I tested it again, placed the trap yesterday evening, and all pending orders which where triggered yesterday worked ok well, there where new pending orders at the opposite side placed. But this morning, when (first time) the level 3 was triggered, there was no new pending order initiated to be set at the other side. This time I run the EA all time in M1 time frame and the pending orders are all set at the same level, not displaced by 2-5 pips from the other. I do not know it that is relevant, just testing as I have no coding skills. So if you know how the strategy is working you can trade with this EA but please do some "baby sitting" with it until the bug(s) is/are fixed. I wish all of you a nice weekend, Dietmar

Author:	Agent_Tommy [ Fri Mar 16, 2012 9:21 am ]
Post subject:	Re: Euro Grid by Dietmar
forextrader-radioman wrote:Update: I tested it again, placed the trap yesterday evening, and all pending orders which where triggered yesterday worked ok well, there where new pending orders at the opposite side placed. But this morning, when (first time) the level 3 was triggered, there was no new pending order initiated to be set at the other side. This time I run the EA all time in M1 time frame and the pending orders are all set at the same level, not displaced by 2-5 pips from the other. I do not know it that is relevant, just testing as I have no coding skills. So if you know how the strategy is working you can trade with this EA but please do some "baby sitting" with it until the bug(s) is/are fixed. I wish all of you a nice weekend, Dietmar Hi Dietmar, I had the same situation as described - actually it happened tome 2 or 3 times. I discovered that the clue is in settings. When you use some settings it behave like this. I do not remember what was it , but I think it was something with lots or order number but i am not sure of that. I must admit that since 2 weeks I had no such situation but I use almost the same settings all the time. Best Regards Tomasz P.S. I had some very busy time but I will check carefully and answer your mail regarding the error in openings of new orders (the case from week ago).

Author:	Agent_Tommy [ Fri Mar 16, 2012 9:32 am ]
Post subject:	Re: Euro Grid by Dietmar
forextrader-radioman wrote:Update: I tested it again, placed the trap yesterday evening, and all pending orders which where triggered yesterday worked ok well, there where new pending orders at the opposite side placed. But this morning, when (first time) the level 3 was triggered, there was no new pending order initiated to be set at the other side. This time I run the EA all time in M1 time frame and the pending orders are all set at the same level, not displaced by 2-5 pips from the other. I do not know it that is relevant, just testing as I have no coding skills. So if you know how the strategy is working you can trade with this EA but please do some "baby sitting" with it until the bug(s) is/are fixed. I wish all of you a nice weekend, Dietmar Dietmar, I think I remind myself the cause of it. This happened when you use "AutoLevelOffset" in "True" mode. But I am not 100% sure. Best Regards, Tomek

Author:	Agent_Tommy [ Fri Mar 16, 2012 10:58 am ]
Post subject:	Re: Euro Grid by Dietmar
forextrader-radioman wrote: Agent_Tommy wrote: Dietmar, I think I remind myself the cause of it. This happened when you use "AutoLevelOffset" in "True" mode. But I am not 100% sure. Best Regards, Tomek Hy Tomek, thank you for the fast reply but I have "AutoLevelsOffset = false" , Dietmar Hi Dietmar, I have the same but such situation happened to me when I started to use this EA and I was not sure how to use all settings and my auto-level I remember was "true". Since I use auto level set to false I have no problem. However I changed not only this setting so it may be some other cause. Best Regards, Tomek

Author:	Panamamike [ Mon Mar 26, 2012 4:30 pm ]
Post subject:	Re: Euro Grid by Dietmar
Would anyone be able to add a day of the week filter for the EA? I would like the option yes/no added to the parameters of the EA for each trading day of the week M-F.

Author:	forextrader-radioman [ Tue Nov 27, 2012 9:50 am ]
Post subject:	Re: Euro Grid by Dietmar
Panamamike wrote:Would anyone be able to add a day of the week filter for the EA? I would like the option yes/no added to the parameters of the EA for each trading day of the week M-F. Hello dear Mike, as I posted today here ( http://www.stevehopwoodforex.com/phpBB3 ... 442#p31442 ) It is important to start the EA wise. It is better to start the EA at a price level where you expect some reactions. At past support resistance levels or close to trend lines at daily chart. So we need a improvement for the EA to let it start at a decent price level (instead of a certain time). all the best, Dietmar (Forextrader-Radioman)

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