i believe Grid/Martingale/Average EAs can't be optimized because most of time you have no stop loss
and they are based on opening more orders when price went against you, So, there will be no idea
how price will go against you nor how many orders will open.
This is my own opinion based on long years of experience doing such EAs. :(
i believe Grid/Martingale/Average EAs can't be optimized because most of time you have no stop loss
and they are based on opening more orders when price went against you, So, there will be no idea
how price will go against you nor how many orders will open.
This is my own opinion based on long years of experience doing such EAs. :(
Yes these type of EAs will get you into deep water if a trend goes on for too long. And every once in awhile this happens. I'm not saying I'm against the concept it just needs to be monitored and used at the right times.
i believe Grid/Martingale/Average EAs can't be optimized because most of time you have no stop loss
and they are based on opening more orders when price went against you, So, there will be no idea
how price will go against you nor how many orders will open.
This is my own opinion based on long years of experience doing such EAs. :(
4) Closing the basket of trades when their average profit is in profit (Potentially also trailing their profit).
maybe you can consider to close trades that can cancel off each other not waiting for the basket to be in profit?
Yes
How about the idea of controlling risk / drawdown using Loss Recovery Trader? It seems to me it is a viable solution but I have yet to learn the configuration.
Cheers
Sunny
Osama Shaban: So, there will be no idea how price will go against you nor how many orders will open.
| Yes you do. If you have a $10,000 account and open 0.01 lots, you will use up all free margin in ~10 trades. (More outside the US because of higher allowed leverage.) At that point, no new orders, and existing orders will begin to close (margin calls.) Account blown. Martingale, guaranteed to blow you account eventually. |
How about the idea of controlling risk / drawdown using Loss Recovery Trader? It seems to me it is a viable solution but I have yet to learn the configuration.
Cheers
Sunny
Loss Recovery is not the (all time/always) complete solution for DD. You still need big capital to resist opening more and more bigger contacts.
Also, in the side way market for longer than expected periods you will add more stress on the account.
Again, this is my own opinion :)
Hi all
The Grid strategy has a number of stages
1) The entry strategy when no trades are active
2) Closing the initial trade in profit (Using TP / Trailing Stop)
3) Opening additional trade when the previous trade is in loss
4) Closing the basket of trades when their average profit is in profit (Potentially also trailing their profit).
Is this possible or does it make sense to optimize the grid part?
The grid part parameters usually involves
- Gap at which the next trade opens
- Multiplier of what the next lot will be (can be 1 to use the same lot)
- TP at which the basket of grid trades close.
Trying to optimize would likely put a really small gap with a bigger multiplier, that will most likely have the basket close faster and start a new trade. Hence in this way more trades happen that will generate bigger profit. This however will cause a bigger draw-down or when run over a different timeframe would cause stop out.
Or opposite optimizing to reduce the drawdown would likely put a massive gap between the trade .
My opinion is that it does not really make sense to optimize the grid part.
Please refrain from using arguments like Grids are risky and will always lose all money from account.
Any views or this ?
Hi all
The Grid strategy has a number of stages
1) The entry strategy when no trades are active
2) Closing the initial trade in profit (Using TP / Trailing Stop)
3) Opening additional trade when the previous trade is in loss
4) Closing the basket of trades when their average profit is in profit (Potentially also trailing their profit).
Is this possible or does it make sense to optimize the grid part?
The grid part parameters usually involves
- Gap at which the next trade opens
- Multiplier of what the next lot will be (can be 1 to use the same lot)
- TP at which the basket of grid trades close.
Trying to optimize would likely put a really small gap with a bigger multiplier, that will most likely have the basket close faster and start a new trade. Hence in this way more trades happen that will generate bigger profit. This however will cause a bigger draw-down or when run over a different timeframe would cause stop out.
Or opposite optimizing to reduce the drawdown would likely put a massive gap between the trade .
My opinion is that it does not really make sense to optimize the grid part.
Please refrain from using arguments like Grids are risky and will always lose all money from account.
Any views or this ?
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Hi all
The Grid strategy has a number of stages
1) The entry strategy when no trades are active
2) Closing the initial trade in profit (Using TP / Trailing Stop)
3) Opening additional trade when the previous trade is in loss
4) Closing the basket of trades when their average profit is in profit (Potentially also trailing their profit).
Is this possible or does it make sense to optimize the grid part?
The grid part parameters usually involves
- Gap at which the next trade opens
- Multiplier of what the next lot will be (can be 1 to use the same lot)
- TP at which the basket of grid trades close.
Trying to optimize would likely put a really small gap with a bigger multiplier, that will most likely have the basket close faster and start a new trade. Hence in this way more trades happen that will generate bigger profit. This however will cause a bigger draw-down or when run over a different timeframe would cause stop out.
Or opposite optimizing to reduce the drawdown would likely put a massive gap between the trade .
My opinion is that it does not really make sense to optimize the grid part.
Please refrain from using arguments like Grids are risky and will always lose all money from account.
Any views or this ?