Ubzen's FREE EA Project#1 - page 2
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What do you recommend for take profit. 10-Pips?
yes, that is correct...
What size do you use for your grids?
The grid size is some what pair dependant. I have used 60 on the current version but I have it configured as a parm and backtest the heck out of it to optimize the grid size. If a pair has a wide range like EURUSD, then a higher grid size is required. EURCHF can get away with a smaller (narrower) grid since it moves in a narrower range over the x years period - which results in more trades.
I programmed a version of this into my template. Chances are it's not exactly as you described, the results are below. Interesting system, but I believe it's depending too much on the money-management. From what I can tell within the trading logic, every-time it closes an order in about 10-pips profits, the signal is still the same. So it like a constant buy-close-rebuy and then when price goes against it then my money-management kicks in. I'd say the forecast on this system could use some work. Any suggestions?
wow! That was fast...
so I think you are saying two things...
Heavily dependant on Money Management - I guess that is a good thing, since that is what you were hoping to test!
Forecast - I wonder if instead of a buy-close-buy, we could pare down the profits as it proceeds. For example, when the 10 points are met, check to see if the buy conditions are still true. If they are, close say 20% of the order and keep the rest of the trade open. after 7 more points close some more, at 4 more close more. That would save re-gaining the spread on each re-buy. Make sense? Then, when that order is closed we don't buy again until the indicator has reversed.
Random thoughts at this point.
I'm reluctant to add another indicator, since usually that eliminates one bad trade and two good ones...
sn
So, reduce size as price exhaust then stop and reverse. Nice taught, however most times the size starts at my broker_minimum. So I'm thinking a trailing stop which speeds up as price exhaust would be a good substitute, an example of this is parabola sar. I'll give that a shot tomorrow.
I guess it also means we might be able to squeeze more than 10 out of an entry? Say 12 pips or more?
PSAR sounds like a good idea...
sn
Hi, ubzen. Intersted in applying the moneymanagement to one of my experimental strategys. Drawdown can be quite high due larger numbers of simultaneous trade. ( The EA trades 200 moving average crosses simultan). If yes, drop me a pm or mail do clear out the details.
hmmm... I wonder if the MM "Gold Code" could be set up as a stand-alone EA that manages any trades? Then it would not have to be retro-fitted to everone's EA. It would allow developers to write entry code and leave the rest up to ubzen to bear the weight of the world on our behalf. Swell guy, really.
sn
@serpentsnoir: while that all sounds good in theory. I don't share the hope that money-management alone can make any strategy profitable. It's a combination of 2 things.....Forecast Accuracy and Money-Management. The forecast needs to bear at least 50.1% of the weight.
About your system, the period I posted above was for 2010. It didn't do well as-is for 2009. I guess we're in the process now of changing the algorithm to something of a stop-&-reverse. Hopefully that'll help the forecast.