Thank you Pooler but I think I have not explained well what I said. If you take just Strategy 3 with lot size = Strategy 1 - Strategy 2 and the TP of your Spreadsheet you will have exactly the same results. So you can avoid taking any hedged trade, just trade with Strategy 1 with 0.1,0.2,0.3...... and the TP of your Spreadsheet. Do the calculation, exactly the same.....

Pooler wrote:

Thank you Pooler but I think I have not explained well what I said. If you take just Strategy 3 with lot size = Strategy 1 - Strategy 2 and the TP of your Spreadsheet you will have exactly the same results. So you can avoid taking any hedged trade, just trade with Strategy 1 with 0.1,0.2,0.3...... and the TP of your Spreadsheet. Do the calculation, exactly the same.....

Sorry, but that went straight over my head. What is strat 3?
If you only use strat 1 you will only make 24 pips no matter how many levels it goes.
Adding strat 2 only reduces strat 1's profit on the first 2 levels. Level 1 by 50% (12 pips) and level 2 by 6 pips.
From level 3 on you make more than strat 1's 24 pips exponentially.

If strat 2 went .01, .02, .03 then its a perfect hedge and you end on 0. Thats why I set it to stay at .01 with each level.

Study the spreadsheet carefully. The charts I placed late on Friday also shows the theory is sound with actual trades.

Caillou wrote:

Pooler wrote:

Thank you Pooler but I think I have not explained well what I said. If you take just Strategy 3 with lot size = Strategy 1 - Strategy 2 and the TP of your Spreadsheet you will have exactly the same results. So you can avoid taking any hedged trade, just trade with Strategy 1 with 0.1,0.2,0.3...... and the TP of your Spreadsheet. Do the calculation, exactly the same.....

Sorry, but that went straight over my head. What is strat 3?
If you only use strat 1 you will only make 24 pips no matter how many levels it goes.
Adding strat 2 only reduces strat 1's profit on the first 2 levels. Level 1 by 50% (12 pips) and level 2 by 6 pips.
From level 3 on you make more than strat 1's 24 pips exponentially.

If strat 2 went .01, .02, .03 then its a perfect hedge and you end on 0. Thats why I set it to stay at .01 with each level.

Study the spreadsheet carefully. The charts I placed late on Friday also shows the theory is sound with actual trades.

Sorry but I don't know how to say. Strategy 3 is just an example:take your spreadsheet, make lot size strategy 1 - lot size strategy 2, with TP of your spreadsheet and trade that grid: exactly the same without hedging.

BUY 0.2 + SELL 0.1 = BUY 0.1.....why hedging.....no need at all......your profit is bigger because of your TP, not because your hedging

Caillou wrote:

Pooler wrote:

Thank you Pooler but I think I have not explained well what I said. If you take just Strategy 3 with lot size = Strategy 1 - Strategy 2 and the TP of your Spreadsheet you will have exactly the same results. So you can avoid taking any hedged trade, just trade with Strategy 1 with 0.1,0.2,0.3...... and the TP of your Spreadsheet. Do the calculation, exactly the same.....

Sorry, but that went straight over my head. What is strat 3?
If you only use strat 1 you will only make 24 pips no matter how many levels it goes.
Adding strat 2 only reduces strat 1's profit on the first 2 levels. Level 1 by 50% (12 pips) and level 2 by 6 pips.
From level 3 on you make more than strat 1's 24 pips exponentially.

If strat 2 went .01, .02, .03 then its a perfect hedge and you end on 0. Thats why I set it to stay at .01 with each level.

Study the spreadsheet carefully. The charts I placed late on Friday also shows the theory is sound with actual trades.

Sorry but I don't know how to say. Strategy 3 is just an example:take your spreadsheet, make lot size strategy 1 - lot size strategy 2, with TP of your spreadsheet and trade that grid: exactly the same without hedging.

BUY 0.2 + SELL 0.1 = BUY 0.1.....why hedging.....no need at all......your profit is bigger because of your TP, not because your hedging

Pooler wrote:

Caillou wrote:

Pooler wrote:

Thank you Pooler but I think I have not explained well what I said. If you take just Strategy 3 with lot size = Strategy 1 - Strategy 2 and the TP of your Spreadsheet you will have exactly the same results. So you can avoid taking any hedged trade, just trade with Strategy 1 with 0.1,0.2,0.3...... and the TP of your Spreadsheet. Do the calculation, exactly the same.....

Sorry, but that went straight over my head. What is strat 3?
If you only use strat 1 you will only make 24 pips no matter how many levels it goes.
Adding strat 2 only reduces strat 1's profit on the first 2 levels. Level 1 by 50% (12 pips) and level 2 by 6 pips.
From level 3 on you make more than strat 1's 24 pips exponentially.

If strat 2 went .01, .02, .03 then its a perfect hedge and you end on 0. Thats why I set it to stay at .01 with each level.

Study the spreadsheet carefully. The charts I placed late on Friday also shows the theory is sound with actual trades.

Sorry but I don't know how to say. Strategy 3 is just an example:take your spreadsheet, make lot size strategy 1 - lot size strategy 2, with TP of your spreadsheet and trade that grid: exactly the same without hedging.

BUY 0.2 + SELL 0.1 = BUY 0.1.....why hedging.....no need at all......your profit is bigger because of your TP, not because your hedging

I think maybe you're not understanding strat 1 properly?
Because BUY .02 + BUY .03 is not = to SELL .01 + SELL .01.
If I didn't use hedging I would start BUY at .01 which would = 12 pips for strat 1. With hedge start lot size always 50% of strat 1 I still get 12 pips. But if price fills more levels I get more profit than just with strat 1.

I have to place the hedge from the beginning so as to maximise profit when price fills more levels.

Caillou wrote:

Caillou wrote:

Pooler wrote:

Thank you Pooler but I think I have not explained well what I said. If you take just Strategy 3 with lot size = Strategy 1 - Strategy 2 and the TP of your Spreadsheet you will have exactly the same results. So you can avoid taking any hedged trade, just trade with Strategy 1 with 0.1,0.2,0.3...... and the TP of your Spreadsheet. Do the calculation, exactly the same.....

Sorry, but that went straight over my head. What is strat 3?
If you only use strat 1 you will only make 24 pips no matter how many levels it goes.
Adding strat 2 only reduces strat 1's profit on the first 2 levels. Level 1 by 50% (12 pips) and level 2 by 6 pips.
From level 3 on you make more than strat 1's 24 pips exponentially.

If strat 2 went .01, .02, .03 then its a perfect hedge and you end on 0. Thats why I set it to stay at .01 with each level.

Study the spreadsheet carefully. The charts I placed late on Friday also shows the theory is sound with actual trades.

Sorry but I don't know how to say. Strategy 3 is just an example:take your spreadsheet, make lot size strategy 1 - lot size strategy 2, with TP of your spreadsheet and trade that grid: exactly the same without hedging.

BUY 0.2 + SELL 0.1 = BUY 0.1.....why hedging.....no need at all......your profit is bigger because of your TP, not because your hedging

You can make this:EA from post 1 vs EA with hedge
Run these 2 EAs at the same time, criminal, pair.
Lot size EA 1: lot size Strategy 1 EA hedge - lot size Strategy 2 EA hedge
TP EA 1: TP EA hedge
You must have similar results

swnke2 wrote:Hi Pooler,

Maybe I don't understand the strategy either, however one item that has my attention is the following:

From your spreadsheet, lets take a level 1-4 trade (rows 32 to 40). The level 4 trade itself (row 38) sees a SELL of AUDJPY at 0.5 lots for a profit of 123 pips. The equivalent level 4 BUY trade (0.1 lots) makes a -24.6 pips loss HOWEVER the SELL trade is a 0.5 lots and the BUY trade is at 0.1 lots. So, you can't compare the pips made on the SELL trades and the BUY trades as they are using differing lot sizes and hence different cash amounts. The calculation in the spreadsheet needs to take account of the lot sizes as well to effectively calculate the effect of the draw down and eventual profit (in pips and cash).

Apologies if I've not followed the strategy correctly but regardless in my humble opinion, the spreadsheet needs to be updated to reflect the lot sizes and the effect that this has on the overall profit of the account.

Cheers,
Nick.

Forexman1972 wrote:The problem with this strategy is by the time you get to high levels eg level 10 your take profit is almost 100 pips away.

You keep saying strategy 1 can't lose, no strategy exists, unless you have unlimited margin and can keep positions opened for years.