A "break-even" strategy
Isn't it better to close an order when the price has gone the wrong way and immediately open an order in the opposite direction with a lot, for example, 1.2 times bigger than the one just closed? Then the lots will not increase exponentially. It should be the same. Or have I misunderstood something?
I've done one of these.
Only it was before 2008. There were a lot of counter positions during the flat times.
And the lot and the deposit are growing fast and so is the floating loss in lots.
May be 2008 is a good trend year for it.
The best results were at Funtecak the most explosive instrument.
But anyway it was impossible to avoid a hard flat by any filters.
I've done one of these.
Only it was before 2008. There were a lot of counter positions during the flat times.
And the lot and the deposit are growing fast and so is the floating loss in lots.
May be 2008 is a good trend year for it.
The best results were at Funtecak the most explosive instrument.
But anyway no filters could avoid the hard flat.
And if you put the corridor height above the height of the flat
Wouldn't it be better to close an order if the price has gone the wrong way and immediately open an order in the opposite direction? Then the lots will not accumulate exponentially. It should be the same. Or maybe I missed something?
We could also close, but the essence will be the same.
If we open a 0.01 lot for buy, the price went the wrong way by X pips, we open a 0.02 lot for sell. If we close the 0.01 bye order and open 0.01 to sell, our balance will be the same.
Just how a MTS like this will behave in a flat... >> we have to think about it.
And if you put the corridor height above the flat height
The trouble is that the height (amplitude) of the fly is not constant.
Isn't it better to close an order when the price has gone the wrong way and immediately open an order in the opposite direction with a lot, for example, 1.2 times bigger than the one just closed? Then the lots will not accumulate exponentially. It should be the same. Or maybe I don't understand something?
In this case we already have a losing trade, but there is no compensated one and it is not known if there will be one. And in this strategy, a losing trade is closed when the lossless position of a profitable trade is set, and even if a profitable trade closes on the lossless position, but still the balance will not change.
And if you put the corridor height above the flat height
The problem arises, how to define this flotation...
The problem arises as to how to identify this flat...
With the help of past flops and the volatility of the instrument
In this case we already have a losing trade, but there is no compensated trade yet and we don't know if there will be one. And in this strategy losing trade is closed when breakeven of profitable trade is set and even if profitable trade will close on breakeven, but still the balance will not change.
Aha! Interesting idea.
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I will try to explain the meaning of the strategy. Upon a certain signal, the EA places a buy order with 0.01 lot, let's assume the price went down and moved a little bit away from the open position, then the EA puts 0.02 lot in the sell position to compensate for the first sell order when it reaches a certain level. If the price went down again and reached the level of the 1st order, the Expert Advisor will place a 0.03 lot sell order to compensate for the losing 0.02 lot sell order, and so on until the price moves out of the H pips corridor. The problem with this strategy is that the volume of lots are opened exponentially, but with a certain H (should be high enough) and an initial high deposit you can achieve good results. This strategy is good on days of high volatility and it does not matter which way the price goes. In this strategy it is also possible to limit the losses, by prohibiting the opening of an order when a certain lot volume is reached. The probability of the price fluctuating for a long time in the 100 point range is small and it will either rise or fall. Here are two charts with different parameters for 2008.