HedgeHog System & EA - page 4

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I have had some questions about Money Management. So here goes:

The things you need to know are:

1. What stoploss you plan on running. I have found 50 works good for most pairs.

2. How much capital you plan on using.

3. What your leverage is. Most mini accounts are 200:1

4. How much of your capital you plan on risking (in percent).

Now in the examples above, i generally calculate my total lot size available based on a few ideas:

1. If i trade say 6 pairs, i plan on having 3 of them going wrong on the first level (or initial lot size). This is not to say i will have 1/2 of them wrong, but we want to budget for it so that way we are still in MM.

2. The odds of a trade going wrong twice in a row is extremely rare, so we do our main MM calculation on having 3 trades running Martingale size lots, and 3 running initial size lots.

Calculations:

The martingale premise is that if we have a TP of 10 and a Stoploss of 50, that means that if i win i earn 10 pips, but if i lose i lose 50. So in order to compensate the next day for a loss of 50 i have to earn the equivalent of 50 at least to break even. So if our Tp is still 10, then 50 / 10 = 5. Now we want a profit so we take 5 and add 1, so we get 6 lots.

So now with this example we know that with a TP of 10 and a SL of 50, the second level trades are 6x as big. With this in order to calculate our total lot demand based on 3 good trades and 3 bad the first day we do:

3 trades @ 6 lots

3 trades @ 1 lot

total = 21 lots

(now remember there are still 2 trades for every pair, so a total of 12 trades, but the respected other side always closes in profit, so we don't count them).

OK, so we budget for 21 lots based on a 1 lot initial size. Now if we have $10,000 worth of funds and want to risk 10%, we are risking $1000 worth.

$1000 / Stoploss = lots available to trade. So in our example on a mini account if we had $10,000 and risk 10% on 50 S/L trades, we can risk a total of 20 lots. this is what is available or we budget for.

Now we take our 20 lots available and we know we need 21, we go 20/21 = 0.95 initial lot size.

So with money management, our $10,000 @ 10% and 50 SL gives us initial trades of 0.95 each, and our second level would be 5.7

Now you can follow along with your risk threshold and amounts to come to your own unique initial lot size. The rules and guidelines are pretty simple and laid out very well in these first few pages here or in the original thread.

Thanx,

Graham

 
......

So what is the contest? Are you talking about the systems tested out in the Elite Section?

Graham

in the contest you can try to beat other Ea`s with yours, if you win you get a price( money). the exactly rules you can find on the board.

Thanx and good luck!

haubentaucher

 
haubentaucher:
......

So what is the contest? Are you talking about the systems tested out in the Elite Section?

Graham

in the contest you can try to beat other Ea`s with yours, if you win you get a price( money). the exactly rules you can find on the board.

Thanx and good luck!

haubentaucher

Sounds like a neat idea. I never designed this system though, i just want to see it succeed. Once we get the bugs worked out, an EA built, then maybe i will throw it in there.

Thanx for the idea,

Graham

 

I have the EA almost ready, I based it off v1.1, but I added the martingale feature and I'm just working on getting entry time more precise (the only hold up at the moment).

 
sampson:
I have the EA almost ready, I based it off v1.1, but I added the martingale feature and I'm just working on getting entry time more precise (the only hold up at the moment).

Sounds terrific. Good work. On Friday i will post my spreadsheet of results so far, which will primirily be for april trading on both timeframes.

Graham

 

Ok, here are the results for Wednesday's trades:

For the 22:00 GMT trades we were 12/13 and had a net of $3190 for the day, bringing the total so far to $11,139, while maintaining an accuracy of 94/109 or 86.24%

The 00:00GMT encountered all the jpy pairs taking a hit today. However that being said, we had a net of $1033 with 10/13 and the total thus far rests at 106/124 or 85.48%

Tomorrow i will post my spreadsheet with day by day results, plus my trade logs so you can see for yourself the trades.

Graham

 

Can you post the version your using, I can test it out too..

Thanks

 
DOMIANDR000:
Can you post the version your using, I can test it out too.. Thanks

We don't have a version as of yet. It is still under development. All the trades i have done have been manual because i personally don't trust any of the available EAs posted earlier in this thread.

Thanx,

Graham

 

Graham,

I was just thinking. The best currency pair on your list is EJ.

Instead of trading say $1 a pip on 10 currency pairs wouldn't it be better to go with $10 a pip just on the EJ pair which has a higher win ratio?

Mike4X.

 
mike4X:
Graham,

I was just thinking. The best currency pair on your list is EJ.

Instead of trading say $1 a pip on 10 currency pairs wouldn't it be better to go with $10 a pip just on the EJ pair which has a higher win ratio?

Mike4X.

I have thought the same thing myself. At the moment i want to do testing on as many pairs as spreads will allow (under 5 pip spread, with the exception of the gbp/jpy).

I personally only really like the Eur/Usd, Gbp/Usd, Usd/Chf, Usd/Jpy, Eur/Jpy and Gbp/Jpy to trade live, and yes in time the pairs that trade best would definitely get a higher lot defined probably by % based on money management. What i mean is if i want to run 3 times as many lots on the eur/jpy, i figure out what the load would be for level 2, then figure out what the base lot size would be.

At this time i am just trying to get a feel as to how this system works with the different pairs so i know which ones work best long term.

Hope this helps,

Graham

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