Hi all,
Almost ready to go with new EA. Put your reading glasses on
See chart of GJ--The problem of the early levels closing only with breakeven is solved. I set the OR 20 pips from Pivot line (black line) which is quite low for the Jpy pairs--I normally set them at 30.
Price filled both Sell Limit (.02 lots)/Buy stop (.01 Lots) above black Pivot Line (128.910) at 02h29 (vertical green dotted line).
Then retraced with the next candle at 02h49 and filled Sell TP/Buy SL which was set at 60% of OR at (128.790).
Sell trade profit (12 pips x .02 lots = 24 pips/$ 2.88).
Buy trade loss (12 pips x .01 lots = -12 pips/-$ 1.49).
Nett gain from both trades 12 pips/$ 1.39.
If price hadn't retraced and took off like yesterday's EJ example the profit would have been incrementally higher.
Please note the Chandlier trailing exit didn't come into play here as price didn't move far enough.
Now flip/reverse everything above for the next trade
At 05h07 price filled Buy Limit (.02 lots)/ Sell stop (.01 Lots) below black Pivot Line (128.510) at 2nd (vertical green dotted line)
Then retraced and 2 candles later at 05h29 filled Sell TP/Buy SL which was set at 60% of OR at (128.620).
Buy trade profit (12 pips x .02 lots = 24 pips/$ 2.94).
Sell trade loss (12 pips x .01 lots = - 12 pips/-$ 1.33).
Nett gain from both trades 12 pips-/$ 1.61.
Add the two trades together then you have a total profit of 24 pips/$ 3.00.
See attached spreadsheet.
This trade would have whip sawed the hell out of most strategies but instead now you profit
When Steve started this thread for me 2 weeks ago (2 Nov) with Fx Pooler/San (the current EA FxPooler ver 2.1 on post 1)-- the weakness with that EA was too many levels being filled and creating draw down.
I then created the hedging strategy to reduce the draw down. In this process I realised that the Hedging strategy should be the main strategy and the original retracement EA should be the actual hedge for when prices don't run/trend.
You want to trade (opening of London/New York --or both) because now volume is good for you and you want to catch price when it takes off. (Break outs anyone?)
You can also apply all the various ingenious filters that exist on various EA's on these forums to see when there is a move coming. (That might be a possible development)
But what if you're wrong and price "misbehaves"-- and it whip saws/ranges which always results in a loss and happens 70-75% of the time? If that happens the EA will scalp some pips (as per eg above). If price does takes off like yesterday, the EA will cash in properly and you don't have to worry that you get the exit wrong.
This solves my 2 fears --getting in at the right place and more importantly-- not being scared of exiting too early or too late. Every trade that now opens will always be profitable--just how profitable depends on you. Now you can trade with a smaller account because draw down is less as a result of the hedging effect with each trade.
Obviously, money management with lot sizes, leverage, amounts of trades will always still be important as there will always be draw down...just not as much as before (reduces by half--54%)
There are some issues with both sell/buy trades not opening at the same time due to spreads but Mantkinth has come up with a brilliant solution--he just needs to code it so we can test it.
My apologies for doing all this in the background but I first want to get the hedging strategy sorted and working before posting the end result on a new thread. Then everyone can poke and prod the new EA, kick its tyres (coders please look under the hood) and try to bend or break my strategy as I'm must surely be overlooking something.
I'd appreciate it if we can then achieve my original stated aim. If just one trader can stop losing money and make some peeps with the new EA then I'll be happy.
Nearly there. Appreciate your patience
Regards
Pooler
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