Peaky on Steroids

[zafh]

Like I wrote a few posts before, I like to take profit regularly, and enter again at the same price.
This takes some elbow grease to enter all trades, but in the end it is worth it.
This way I booked nearly 1.000 pips on a 400 pip run, AND have another ~150pips floating positive.
[see attached chart]
.

Could you expand on this please? If you are closing trades for a profit and the reopening them again at the same price you closed them how are you turning a 400 pip run into 1000 pips? I am familiar with stacking where you add to the winning position, or grid trading where you add to a losing position, but don't get how you can make extra pips by closing a trade and reopening it at the same price.

Really like the way you have thought about structuring this using different settings for different pairs, very very clever.

Zaf

Did you check out the chart?

On certain levels the EA fired 5 to 6 trades after a retrace, profiting 250-300 pips on the same 50 pip stretch.

Would I have sticked to the original "open on yellow, close on green", I only would have seen a whipsaw floating profit.

Yeah, I think I was confused by your description compared to the chart.

So say you are short 0.01 lots if price retraces up you add another 0.01 lots at a certain levels and when price goes back down you close those positions for a small profit (similar to grid trading). Is that what you are doing?

I think I was confused as you said you closed a trade and re-opened it at the same price, you meant re-opened at the same price it was opened originally rather than current price?

[zafh]

.

Just to give an update [and bragg about it ];

The weekly performance as measured by FXBlue;
Week 41: 3.41%
Week 42: 0.93%
Week 43: 5.31%
Week 44: 12.31%
Week 45: 2.84%
Week 46: 11.88%
Week 47: 3.7%
Week 48: 17.33%
Week 49: 9.39%
Week 50: 10.86%
Week 51: 1.9%
Week 52: 1.8%
Week 01: 1.6%
Week 02: 11.1%
Week 03: 2.5%
Week 04: 8.6%
Week 05: 4.3% till now

The above is on a live cent-account that I'm planning to move to a big-boys account as soon as the balance allows me to.
This will take another 3 months or so.

I have been watching your demo account closely and have been super impressed, especially how it handled periods where others were going into a large DD. Does you live account have a similar DD ongoing percentage wise?

[Gertje]

I have been watching your demo account closely and have been super impressed, especially how it handled periods where others were going into a large DD. Does you live account have a similar DD ongoing percentage wise?

Not really
I’ve seen 40% DD more than I like.

The secret i’m sure now, lies in the “cushion trade”, the lowest buy/ highest sell that I keep open all the way to the other side of the 6th. This conquers DD like nothing before. The trick is now to find out where and when to start this trade. And of course where to close it.....

Below a chart with such a “cushion trade”. This pair currently is in updraft instead of downdraft, compensating other less lucky pairs and thereby fighting the overall account DD.

B1D5C646-F619-4FEB-AFE7-A8B50F3083EF.png

I’ve been thinking about several possibilities regarding closing the cushion trade, a sell will hedge it and lock in the profit. The two trades keep generating swap of course.
Closing one side when a hedge occurs (at the opposite yellow line) seems more likely then, this also locks in the profit by banking it.
Or...
Or...
Maybe...

[Gertje]

Yeah, I think I was confused by your description compared to the chart.

So say you are short 0.01 lots if price retraces up you add another 0.01 lots at a certain levels and when price goes back down you close those positions for a small profit (similar to grid trading). Is that what you are doing?

I think I was confused as you said you closed a trade and re-opened it at the same price, you meant re-opened at the same price it was opened originally rather than current price?

Yes, it is a combination of gridtrading combined with 6th as the trigger and direction.

[zafh]

I have been watching your demo account closely and have been super impressed, especially how it handled periods where others were going into a large DD. Does you live account have a similar DD ongoing percentage wise?

Not really
I’ve seen 40% DD more than I like.

The secret i’m sure now, lies in the “cushion trade”, the lowest buy/ highest sell that I keep open all the way to the other side of the 6th. This conquers DD like nothing before. The trick is now to find out where and when to start this trade. And of course where to close it.....

Below a chart with such a “cushion trade”. This pair currently is in updraft instead of downdraft, compensating other less lucky pairs and thereby fighting the overall account DD.



I’ve been thinking about several possibilities regarding closing the cushion trade, a sell will hedge it and lock in the profit. The two trades keep generating swap of course.
Closing one side when a hedge occurs (at the opposite yellow line) seems more likely then, this also locks in the profit by banking it.
Or...
Or...
Maybe...

The cushion trade is something else I didn't understand. I understood what you did, but can't see the point.

You are locking in a profit on a hedged position for say $1000, so if you other trades go into draw down there is a $1000 cushion in the open trades before it goes negative.
But if you just closed the cushion trade then you have an extra $1000 in the balance, while your open trades may be in drawn down your equity has still grown. Unless I am misunderstanding it is the same thing just your way your balance is smaller but open trades are always positive. Am I missing something?


The 40% DD isn't too bad considering how quickly you make money. I always judge DD based on how long it takes to make more than the worst case DD so far. If the $ amount is to high one can simply adjust the account size or trade size.

[Gertje]

The cushion trade is something else I didn't understand. I understood what you did, but can't see the point.

You are locking in a profit on a hedged position for say $1000, so if you other trades go into draw down there is a $1000 cushion in the open trades before it goes negative.
But if you just closed the cushion trade then you have an extra $1000 in the balance, while your open trades may be in drawn down your equity has still grown. Unless I am misunderstanding it is the same thing just your way your balance is smaller but open trades are always positive. Am I missing something?

The 40% DD isn't too bad considering how quickly you make money. I always judge DD based on how long it takes to make more than the worst case DD so far. If the $ amount is to high one can simply adjust the account size or trade size.

i believe that it keeps a MC further away while trading the same lotsize to accountsize.
The equity divided by used margin gives a higher available margin percentage.
The socalled cushion trades grow to high values, the biggest one at the moment is 610 pips.
Normally, I would have closed it at 50....

[billv]

Gertje
Do you think this EA would have made any money of you didn't trade it manually?

[Gertje]

Gertje
Do you think this EA would have made any money of you didn't trade it manually?

I'm sure it does, I have another demo running hands free since november/ december 2017.
[not sure when I left it on it's own, running 3 accounts this way was to much for me]

https://www.fxblue.com/users/2085517
The profits are 'slightly' less than my manual traded accounts, but so is the DD....
Since the start of this account in the beginning of july 2017 the account nearly quadrupled!

[andwen]

Must concede that is pretty bloody impressive. I was hoping to double in 6-12 months.

Well done :hi: :hi: :hi: :hi: :hi: :hi: :hi: :hi: :hi: :hi:

[Gertje]

Gertje
Do you think this EA would have made any money of you didn't trade it manually?

I'm sure it does, I have another demo running hands free since november/ december 2017.
[not sure when I left it on it's own, running 3 accounts this way was to much for me]

https://www.fxblue.com/users/2085517
The profits are 'slightly' less than my manual traded accounts, but so is the DD....
Since the start of this account in the beginning of july 2017 the account nearly quadrupled!

Here is the performance chart from the account linked above;

PoS 2085517.png

I can tell that I'm responsible for the DD on the other accounts, seeing the equity line after mid december.....