The Reverse _Tunnel - page 3

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John Taylor
30
John Taylor  

Martingale, grids and volatility

For grid strategy you need volatility, but not (huge) trend. This will wipe you out faster than you think. Whatever EA you write, make sure you test it at different times, as you can be lucky with where you place your grid. Generally, martingale methods relate to the lot size that you use. Quite often, exponential lot sizes are barmy, (1,2,4,8) this will make you lose your wedge faster than you can blink. I have tried this when I was a lot more naive with real cash in the futures market, and got burned the first and only time I tried. Professional gambler friends of mine do this, but quit after 3 failures. Can you survive 16 lots going against you by 1000 pips? How about 32, 64, or 128? You need deep pockets or high leverage. Many grid systems work because lot sizes are small 0.01 and min balance of US$50K is maintained. BTW you do realise that when your dangling trades exceed your NAV, the broker closes all your trades wiping you out to zero?

Having said all that, I am very interested in the mathematics of it all. Most commercial grid robots are so naive they make me laugh. it is particularly interesting to review posts from 5 years ago, and then the posts of a year after that. The recent debacle of an expensive commercial robot (that shall remain nameless cos I actually admire what its trying to do) and EURCHF springs to mind.

Grids can and do work for some people. They generally watch their systems like a hawk and have strategies to defeat large drawdowns when the price action navigates outside the grid.

Please dont let me put you off researching this track, and please dont let your broker have your hard earned readies by putting into place an (on paper) remarkable tool, that wont quite live up to the job.

Best

Greevus

paripally
5
paripally  

Hi

Could you explain how you are placing orders with SMA610

Many thanks in advance

Paripally

HugoGon:
Hi everyone,

I would like to transform and share a manual system i've been using for the last 3 years and always in profit...

But i would like your help to make a robot with it (EA)

The system has the following rules...

Chart 1 Minute

Place a SMA of 610 applied to Close, then add the following levels to it -10, -20, -30, -40 , -50, -60, -70 and of course 10,20,30,40,50,60,70

Sell 1 Lot @ 10, 2 Lots @ 20 ....

Buy 1 Lot @ -10, 2 Lots @ -20 ....

Take profit when price comes back to SMA...

Quite simple a lot of money...

Can you help make a EA of this?

Thanks
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