Hedge saved you, who will save Hedge ? - page 25
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Cent : 50$ - profit : 0.40$ ----> Normal : 5000$ - profit : 40$
@Chris Mukengeshayi, hey man, how many times do you need with a 5000$ account to make 10 times what this EA has done in 2 days ?
Hi Icham!
I think it's been two years since I Iast posted on this topic! How are you?
I see you are still working on this problem. I've also spent the last couple years working on new strategies, not exclusively on hedging, but I made several advancements and discoveries to the point I got confident enough to use it on real accounts. It's been good so far!
Did you manage to find a solution to your problem?
Best regards.
Hi Icham!
I think it's been two years since I Iast posted on this topic! How are you?
I see you are still working on this problem. I've also spent the last couple years working on new strategies, not exclusively on hedging, but I made several advancements and discoveries to the point I got confident enough to use it on real accounts. It's been good so far!
Did you manage to find a solution to your problem?
Best regards.
Hey Rafael,
Nice to read u again ! It just has been a trending topic on the forum recently, so I invited those interested to check on this thread what has been done when we were working on 2 yrs ago.
Then, I used to work on a class to partial-close positions dynamically based on some criterias for another system and I thought that it could be great once implemented to the hedging one ... but results weren't relevant enough ... they weren't bad but it wasn't better than another lambda strategy ... so I did let it aside
Very boring, finally :)
I think I might have found a solution to this problem.
If you don't want to read the whole text, I've created a TL-DR (too long, didn't read) at the end
When using a Hedge system, the problem is that when your EA gets stuck in a cycle (buy - sell - buy - sell ...), the size of the trades (lots) keeps getting bigger until you reach your margin call, right?
As I told on this same thread previously, I am mixing averaging and hedging on the same system to try to recover losing trades.
But even if we make a very good EA, there will always be a very specific market condition that will "break" the EA. When using Hedge, ranging market is your enemy, when using averaging, trending makert is your enemy.
But even combining these two strategies, the will always be a cycle that breaks the EA - so the main problem is the market cycle, the repetition.
So what I did was combine dozens of different hedging and averaging strategies on a single EA. Each strategy has a value, the higher the value the more likely is the strategy to work. This value is calculated by the EA depending on the current market condition - ranging or trending, volatility, "cycle amplitude", how long it's on the current cycle, etc.
When the initial trade fails (reachs a point where it should hit a SL), a new trade is opened using the strategy with the greatest value (calculated by the EA on the fly). If it fails, it tries another strategy (again, using the strategy with the greatest value calculated on the fly, but not repeting the previous strategy).
Depending on the chosen strategy, the EA could either try to use edge or averaging. Also based on the strategy, it will calculate the required lot size and the maximum accepcted loss of the current trade before trying another strategy.
I've been running this EA for a few months with very good results - only correcting a few bugs here and there.
The main problem is of course programming such a EA... I understand it requires a lot of market and programming skills, but I know there a lot of people here than can do it.
TL-DR
Create your EA using several different strategies, do not keep repeating the same trades (buy - sell - buy - sell) on the same levels or you will always reach a margin call.
You have been researching this for a long time. Did you research what would be the outcome of the same strategy if just cut the losing trade vs applying Average/Hedge/Martingale?
These types of Average/Hedge/Martingale systems require you to keep a good portion of margin not utilized to accommodate the Average/Hedge/Martingale component, in case a trade goes wrong. This results in that initial lot size is kept relatively small in these types of systems with regard to available margin compared to the same system without the Average/Hedge/Martingale component.
In other words. It could very well be, the same system that does takes the loss might requires less balance to cover the margin requirements to archive the same net result as the no losing one over the same period. If this is the case, you are in fact losing money at a cost of not losing trades.
No one likes losing, but losing some times might be more profitable in the long run, especially when reinvesting.
You have been researching this for a long time. Did you research what would be the outcome of the same strategy if just cut the losing trade vs applying Average/Hedge/Martingale?
These types of Average/Hedge/Martingale systems require you to keep a good portion of margin not utilized to accommodate the Average/Hedge/Martingale component, in case a trade goes wrong. This results in that initial lot size is kept relatively small in these types of systems with regard to available margin compared to the same system without the Average/Hedge/Martingale component.
In other words. It could very well be, the same system that does takes the loss might requires less balance to cover the margin requirements to archive the same net result as the no losing one over the same period. If this is the case, you are in fact losing money at a cost of not losing trades.
No one likes losing, but losing some times might be more profitable in the long run, especially when reinvesting.
I avoid using the name Martingale because it's too simple. A simple Martingale will always end up in account being blown.
And yes, I've developed several strategies that closes the trade instead of keeping it open. On those EAs, what I usually did was keep track of how much money was lost and in subsequent trades I calculated the lot size to recover the loss......... I am thinking of several details and differences about the two approaches, and it is more complex that is seems. Keeping trades open offers a more linear account growth among other things...
I also have an EA that uses TP and SL and fixed lot sizes. While it does give positive return on the long run, it can have bad days/weeks.
My current EA, the one I described on my previous post, closes trades at breakeven on the worst situation, so the final account growth is a lot bigger.
Of course it still have it's risk, every system has, but I've never built a EA that performed so good before, and I've made hundreds of them! That's why I am sharing this information - a way I found to solve the "hedge" problem. The problem with all recovery systems is trying to recover a losing trade using the same strategy that initially failed.
Any updates for 2022?
Hey Rafael,
Nice to read u again ! It just has been a trending topic on the forum recently, so I invited those interested to check on this thread what has been done when we were working on 2 yrs ago.
Then, I used to work on a class to partial-close positions dynamically based on some criterias for another system and I thought that it could be great once implemented to the hedging one ... but results weren't relevant enough ... they weren't bad but it wasn't better than another lambda strategy ... so I did let it aside
Very boring, finally :)