ZigZag situation in a hedge grid system
Guys,
Any recommendation how to prevent a zigzag situation in a hedge grid system EA?
What is a " zigzag situation"?
If you are talking about the "whipsaw" in the prices where the losses build up and the volume of successive positions increases, then the solution is very easy ...
Stop using Martingale, Grids, or same symbol Hedging!
Only newbies, and the ignorant who still don't understand know how to trade properly, and those that refuse to accept the maths, continue to believe in such a "holy grail".
Stop being one of theme and invest in your trading education.
Hedging, grid trading, same as Martingale.
Martingale, Hedging and Grid : MHG - General - MQL5 programming forum (2016)
Martingale, guaranteed to blow your account eventually. If your strategy is not profitable without, it is definitely not profitable with.
Martingale vs. Non Martingale (Simplified RoR vs Profit and the Illusions) - MQL5 programming forum (2015)
Why it won't work:
Calculate Loss from Lot Pips - MQL5 programming forum (2017)
THIS Trading Strategy is a LIE... I took 100,000 TRADES with the Martingale Strategy - YouTube (2020)
Guys,
Any recommendation how to prevent a zigzag situation in a hedge grid system EA?
If you are asking about what Fernando Carreiro mentioned, then you can do grid or martingale in some how a scientific (mathematical) procedure!
For grid, you need to know how many X pip levels has been broken before one level correction? (I call this BREAK NUMBER). For example level size is 30 pips, the question is: for whole life of EURUSD what is MAX. number of 30 pips broken before it corrects 30 pips or simply what is Break Number of 30pips for EURUSD? for example in EURUSD for 30 pips it is 6 levels! To find Break Number for any Symbol for any step size you can use an indicator/script on mt5.
It is possible to have distribution chart for Break Number. As any other probability phenomenon, you can calculate your risk based on that graph. for example for number 6 it will be almost 99%. this means with a 1% probability you will fail a grid trade if you just sell each 30 points on EURUSD and have SL on 7th level! it is 180 pips above starting point.
I suggest you to use ATR to have initial assumption on where is probable RANGE areas on H4 if you want 30pips grid on EURUSD.
As a conclusion, you can learn many from grid and Martingale but there are other better type of trading systems!
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Guys,
Any recommendation how to prevent a zigzag situation in a hedge grid system EA?