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How to reduce loss when trend changes ?

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agu2a
65
agu2a 2016.11.26 04:14 

Hello everyone,

I've been trading for close to 2 years already and have a some knowledge in development. I have been flipping between automated and manual trading and love to code EAs.... HOWEVER... every single one I have coded so far always gets me when a trend changes and most times I have to wait for a long time with opened positions until the trend catches again.

I usually code EAs following Stochastic other ones I've done follow MA50 and MA100. I don't like to have positions open longer than 1-3 hours.
-All have a check to allow trading if exposure is above 1%
-No limits on number of positions open
-if Exposure starts falling below 1% mark, I flag the losing orders and check which ones are the worst performers and start hedging to recoop Profit

Long story short, all these EAs always get me on the change of trend.

Any sugestions out there on how to manage this issue?.. lowering number or positions open?... use of other indicators? hedging? take loss?
And also managing dradown?

Michael Maggi
1404
Michael Maggi 2016.11.26 09:40  

Have you tried Renko charts?  They rely on price movement and NOT time. The trend changes are obvious and you can adjust the box size to eliminate many of the false reversals that cause whipsaws. 

Since Renko is all about price trends they are as fast as the market so you can easily trade for 3 or 4 hours where to get stable trends you really need higher time frames and longer duration trades.

I have a lot of other info if you are interested. You can Google Renko trading strategies or search YouTube and there is plenty of stuff.  My profile page has my Renko trading.  I don't have anything to sell but I do like discussing trading ideas with other traders.

Files:
Renko_1.png 26 kb
agu2a
65
agu2a 2016.11.26 15:02  
Michael Maggi:

Have you tried Renko charts?  They rely on price movement and NOT time. The trend changes are obvious and you can adjust the box size to eliminate many of the false reversals that cause whipsaws. 

Since Renko is all about price trends they are as fast as the market so you can easily trade for 3 or 4 hours where to get stable trends you really need higher time frames and longer duration trades.

I have a lot of other info if you are interested. You can Google Renko trading strategies or search YouTube and there is plenty of stuff.  My profile page has my Renko trading.  I don't have anything to sell but I do like discussing trading ideas with other traders.

Hey Michael, this is great info. Let me look into Renko charts, I have hear about them but never in depth. Thx again!

agu2a
65
agu2a 2016.11.26 17:38  
After some more in depth analysis on the tester I can see that my EAs do well on trend and the change of trend tends to happen of course when big news happens. Anyone has noticed that news from the ECB about Monetary Policy tend to drive the EURUSD up and down with NFP from the US?
agu2a
65
agu2a 2016.11.27 21:56  
So in my mission to reduce drawdown and exposure I coded a quick indicator similar to a MACD but this one calculates the distance in pips between MA50 and MA100 and I have noticed it can really help to open position a little better as sometimes it can be tricky when to open them. Get it here and let me know what you guys think?
Files:
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