it's a martingale system. there's many of them here. nothing new
it is a martignale system indeed. My goal in my previous presentation is to start a discussion about accumulating edges to make a martignale system profitable because I think applying the technique described above by itself only will ruin any account. I have some ideas which I will present soon, you will see then the lnnovation. Another tool for successful traders is patience. Be patient Criss,
See you soon,
I think the beauty of a grid system is that he takes into consideration an aspect of life evolution, how is that ?
As explained by many authors the fractal exists in the nature with many variations, which respects certain ratios (geometrically). For example, look at the eye of your brother or sister (who look like you), you will notice probably that he have same eye look as you in respect to a certain ratio. Applying this to the market you will see that an upwave looks exactly like the previous upwave in respect to a certain ratio.
A fractal high is a high of a candle which have 2 lower highs candles from both sides.
A fractal low is a low of a candle which have 2 higher lows candles from both sides.
Now attach the fractal indicator to your chart. Choose any fractal high and the preceding fractal low & you will see that this is an upwave, Use the wave length as the the length of the grid increment described in post 1.
Now we have GL(grid length)=WL(wave length)=Fractal high - Fractal low.
This is good because instead of taking a random number for WL or basing on statistical issue, you are lining your thinking with market behavior and what the market is ready to offer.
Edges from using grid system + fractals:
1) A market will definitely retrace one day.
2) You will be there when the retracement occurred.
3) You are better aligned with market behavior.
I would like to give some time to disuss this issue with anyone who is interested before going any further.
Choosing the point of origin is another story,
See you soon
similiar to elliot waves theory?
Hate to sound negative, but this sounds like conflicting goals.
I can't see the similarity between what I stated in post 3 & the elliot wave theory. I don't remember that Mr. Eliott says anything about fractals. All what I did is using a grid length = to wave length (limited by 2 fractals). I don't think that eliott wave theorists are using a grid system in there analysis.
Thank you for your opinion,
Response to Brent Mack
Please clarify your statement, because I really don't see the conflicting goals.
Waiting to hear from you,
see you soon
Please see the attached statement reporting from 9/4/2007 to 27/4/2007.
I have used this system + additional tools I didn't post them yet.
during this period I was trading occasionnally & not full time, If I did the result will be 5 times better I think.
I don't mean to pick on you, Zappata, so don't take it personally... but I found something very odd within your statement - and, perhaps, your trading style.
It seems that 57% of your profit came from a single 7 pip gain when you launched a trade with an astonishing 64 lots, worth $640 a pip!
If that wasn't a data-entry error - I'm afraid that you've got a martingale-ish method that's going to eventually bite you in the ass.