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The best way to use Avalanche in real trading is to stop placing orders after the second or third reversal.
And now the proof:
Scheme for placing Avalanche orders:
Orders are placed at levels 1 and A. At levels 2 and B are breakeven levels, and at levels 3 and C are closing levels for all orders. The width of corridors 3-2, 2-1, 1-A, A-B and B-C are the same. The order volume on the borders of initial corridor 1-A is multiple, i.e. the total volume of orders on the corridor borders increases in the ratio 1-2-4-8-16-32, and so on.
The results are summarized in the table:
The number of reversals is shown in the first column. The second one shows the probability of such a number of reversals before the price reaches the profit taking level. These probability values are obtained in two ways - empirically, by analyzing the long-term history of different trading instruments and mathematically, based on the assumption that the price is equally likely to go in either direction by the same distance.
For the first line (without reversals), the chance of the price to reach a level, for example 1 to 2, is equal to the chance of the price to go from 1 to A and open the next order - the distance from 1 is equal. So half of the time we will make a profit and half of the time we will take a loss.
Now let's activate the Avalanche. At the first reversal, out of the remaining 50% of all price movements, in 25% we will make a profit and in the remaining 25% we will take a loss when we stop placing new orders when the price reverses. The percentages here and hereafter are taken from the initial number of cases (100%). The chance of getting two reversals is also half of the remaining cases, i.e. 12.5% of which half of them will reach profit and the other half will suffer losses, etc.
The Lot column shows the total volume of orders of the larger side of the corridor. The Profit column shows the income in units of money for the given number of reversals, not considering possible profit on the smaller number of reversals. The total profit taking into account all chances of the price movement to the current number of reversals is shown in the column with the same name. The Lock Loss column shows the size (in conventional units) of the loss when new orders are stopped and there are no good chances for price movement. Totals is the difference between the total profit and loss to stop the Avalanche for a given number of reversals. Increase in profit is a multiple of the resulting profit for the greater number of reversals relative to the first positive total of 250 conventional units. Benefit - the result of dividing the Profit Increase by the Lot - in the best case, the profit should grow as fast as possible with as little increase in volumes as possible.
Bottom line: the most profitable use of the Avalanche for real trading is to stop placing orders after the second or third pivot.
What was that?
:)
Complete nonsense, I'm telling you as someone with a mathematical background. And the nonsense begins with the first line of your table
Don't stop John from bending!
:)
Oops. There's the full moon.
Now that's a BRAIN, now that's a MAN...
In three minutes understood John's calculations and gave his final verdict.
Learn, youth! ....
Hello non-humanoids!
"Hole in the head is an update" BG
Hi)
Where have you been? No, you tell me!
Too bad you weren't here on Saturday night. I've never been more alive in here. Now he's following me around on all the threads for some reason. He even came to the fifth forum.
after the third we stop placing orders... The price reverses and closes on the L. It's the same for 00 times.
P.S. buttons are not working on the keyboard(