Gertje » Thu Jul 12, 2018 10:16 am wrote:
Sure Richard,
I'll try to recover my thinking proces of that time.
The attached indi shows the 6th-distance in print in the left upper corner of the chart.
Maybe some other text is covering this, just put it on a fresh chart to see.
I made a list of all 28 pairs I'm trading [all major crosses, no exotic stuff], and wrote behind the name of the pair their 6th-distance.
Just with pen and paper, nothing fancy. I threw it away afterwards.
Then I just sorted these by what seemed logical groups, first 3 groups;
0 < 250
250 < 350
350 > up
Later I split the first group once more;
0 < 150
150 < 250
Then I figured what would be a sensible dollup for each group, and I wondered if 6th-distance = 1% would suffice. Knowing that dollup 0.01/$1.000 gives appr. 1% balance increase for every 100 pips profit, I pulled out my calculator and worked my way through the numbers.
150 pips 6th-distance gives 1% with dollup 0.01/1.500
250 pips 6th-distance gives 1% with dollup 0.01/2.500
350 pips 6th-distance gives 1% with dollup 0.01/3.500
And so on.
My goal was to have each pair attribute as much to the grand total, but also limit DD.
I setteld with dollup;
0 < 150 dollup 0.01/1.600
150 < 250 dollup 0.01/2.500
250 < 350 dollup 0.01/3.333
350 > dollup 0.01/5.000
I have the lotsizing set depending on balance instead of equity, so every recovery trade is at least the size of the original trade, and sometimes bigger after another pair made it to TP in the mean time. This makes sure that with 4 trades or more running, the basket is closed with profit.
Now and then you will notice that a pair in-/decreases it's 6th-distance due to history running "of the chart".
If I notice this, I move the pair to another setfile if no trades are open. If trades are running I let it work out and move it afterwards.
Hope this helps,
Gertjan
