Fx93 wrote:This is the most ingenious martingale/grid type strategy I've seen (its better than Gertje+), thanks for sharing it. I backtested it on the 5M chart on the Euro from 1/1/2005-5/31/2012 and it survives! I also watched how it trades for a year or so visually: what makes it successful is that it moves the TP accordingly. I used a 50:1 criminal with starting 10k at first trading the default lots starting with .1 and this got margin called in 2008, so I switched to 20k and this survives.
Thanks. I figured to be safe I start with .01 lots per $3000
20k grew to 51,298k, which is a bit over +150% in 7.5 years = 20%/year without money management using a 50:1 criminal. So all it needs is money management: using a 50:1 criminal increasing the lot size by .01 lot per 2k works, using a 100:1 increasing it by .02 per 2k (or .01 lot per 1k) would work. This is the only feature that I think should be added first to see it's real gains.
Did you use the settings I posted earlier for the test? For EurUsd I find that starting with .01 lots and increasing with .01 each time except level 9 is .1 and level 10 is .12, aiming for 60% TP on each level and using the following OR increases with each level
1 2 3 4 5 6 7 8 9 10
25 25 25 37 37 50 50 50 75 75
I would like to see how whether the % profit is any better
By comparison during the same period:
Black Belt EA grew from 100k to 413,872k, a 400% gain, the best I know.
Dlewis's TrendOSOB grew from 100k to 160,392 using 2 delay, 16 TP, 70 SL, a 60% gain.
However, due to their money management both made very big gains. Unfortunately with a martingale/grid, money management works much more slowly because one only increases lot size by say .01 lot per $1k gained.
I don't see the usefulness in trading more than one pair, using the one with the best spread that backtests the best would seem the way to go. Two pairs may work though to avoid each's lengthy trades.
I accomodated the spreads withing the starting OR for each pair.
My questions are:
1. How reliable is the EA: if the computer shuts down will it lose the buy/sell grid?
It doesn't lose what is there but won't open any new levels if the price moves while computer is off
2. What happens when the grid is bypassed from a weekend gap?
It sets the next level accordingly
3. During all the period I backtested it, the highest lot trade it opened was .8. Will it open higher lots if necessary? I think I figured out that it starts over with a .1 lot after it opens .1-.8 lots. Does the TP keep averaging with this, from the trade I saw it didn't look like it did, which may be a problem if that is the case.
You can set the lots sizes as you wish. Please check the settings spreadsheet I posted earlier. DO NOT use settings as OTB in the first post. Profitability is affected by the 3 factors at play in the EA lot size x OR x % TP will determine where TP is placed each time. If you keep lot size at .01 for all 10 levels then TP will obviously lag far futher behind price as each OR level opens.
Thanks for assisting
I'll check out if I can increase profitability at all by fooling with the lot size structure next.
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