How to Position Size when STOP is based on a moving average.
How do you control/quantify your risk ?
Currently I dont. That is the reason why Im trying to learn about posistion sizing. But my style is to allow the moving avaerage to maintain control. beleive me I know that this is not common. If however I can get someone to answer thie above question, this would be great. In backtesting I notice how STOP loss greatly reduces profitability, so I have developed a STOPlossLess system.
I'm not sure I how you can size a position without knowing what you are prepared to risk . .
You say you have a stop based on a moving average . . . does this mean that the stop position changes after the trade is placed ?
I'm not sure I how you can size a position without knowing what you are prepared to risk . .
You say you have a stop based on a moving average . . . does this mean that the stop position changes after the trade is placed ?
Yes, stop is in fact the moving average therefore continues to move. Since I posted the question Ive done some browsing and found others that trade in a simular manner. Currently I figure my position size by backtesting "diferent lot sizes" and "max positions opened simultaniously". Im looking for a more scientifice approach
Yes, stop is in fact the moving average therefore continues to move. Since I posted the question Ive done some browsing and found others that trade in a simular manner. Currently I figure my position size by backtesting "diferent lot sizes" and "max positions opened simultaniously". Im looking for a more scientifice approach
The moving average STOP is actually a call to go SHORT or LONG.
Yes, stop is in fact the moving average therefore continues to move. Since I posted the question Ive done some browsing and found others that trade in a simular manner. Currently I figure my position size by backtesting "diferent lot sizes" and "max positions opened simultaniously". Im looking for a more scientifice approach
So if your moving average moves substantially your risk could grow very significantly ?
yes my risk could grow very significantly. My strategy in backtesting creates 2.2 million dollars in 2 years from an initial balance of 3000 . So far, (in back testing) it appears to be well balanced system. It appears that Ive developed a trading system that breaks all the common rules. So Im just looking for others that dont use stops and whos risk levels are determined by moving average. If it turns out that Im alone that ok too.
yes my risk could grow very significantly. My strategy in backtesting creates 2.2 million dollars in 2 years from an initial balance of 3000 . So far, (in back testing) it appears to be well balanced system. It appears that Ive developed a trading system that breaks all the common rules. So Im just looking for others that dont use stops and whos risk levels are determined by moving average. If it turns out that Im alone that ok too.
Sorry i do not understand what you mean by risk levels determined by moving averages.
Even if you exit when price cross (and close) the moving average you will not be able to determine the risk. You can use a statistical approach:
Inspect all bars crossing the moving average,
-If you are conservative use something like MaxLoss=DistanceToMA()+MaximumDistanceOnCross()
-If you are less conservative you can use the AverageDistanceOnCross()
trading system that breaks all the common rules
Make sure you did not exploit one of the common grail system like i did in the beginning. https://www.mql5.com/en/forum/126819 My system break'd also every rule, including the maximal amount of Balance metatrader can display ;)
What is the modelling quality of your data used in your backtest ?
My modeling quality always displays "N/A". I have no idea what the quality is. I have finally retrieved Alpari hst M1 data but not yet learned how to do period conversion - so Im not using the"good" data yet. Im not really trusting the back testest results much anyhow. I just use the backtester to let me know the strategy can work if the conditions are right.
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Hello All
Every position size calculator I find requires a STOP value to process LOT size etc. However my STOP is based on a moving average. Can anyone help me to get past this issue. I dont use STOPs