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How to optimize a Grid/Martingale ?

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Michalis Phylactou
11715
Michalis Phylactou  

Hi all 

The Grid strategy has a number of stages

1) The entry strategy when no trades are active

2) Closing the initial trade in profit (Using TP / Trailing Stop)

3) Opening additional trade when the previous trade is in loss

4) Closing the basket of trades when their average profit is in profit (Potentially also trailing their profit).


Is this possible or does it make sense to optimize the grid part?

The grid part parameters usually involves  

- Gap at which the next trade opens

- Multiplier of what the next lot will be (can be 1 to use the same lot)

- TP at which the basket of grid trades close.


Trying to optimize would likely put a really small gap with a bigger multiplier, that will most likely have the basket close faster and start a new trade. Hence in this way more trades happen that will generate bigger profit.  This however will cause a bigger draw-down or when run over a different timeframe would cause stop out.  

Or opposite optimizing to reduce the drawdown would likely put a massive gap between the trade .

My opinion is that it does not really make sense to optimize the grid part.


Please refrain from using arguments like Grids are risky and will always lose all money from account.

Any views or this ?

Osama Shaban
1500
Osama Shaban  

i believe Grid/Martingale/Average EAs can't be optimized because most of time you have no stop loss

and they are based on opening more orders when price went against you, So, there will be no idea 

how price will go against you nor how many orders will open.

This is my own opinion based on long years of experience doing such EAs.  :(

Sean Meagher
238
Sean Meagher  
Osama Shaban:

i believe Grid/Martingale/Average EAs can't be optimized because most of time you have no stop loss

and they are based on opening more orders when price went against you, So, there will be no idea 

how price will go against you nor how many orders will open.

This is my own opinion based on long years of experience doing such EAs.  :(


Yes these type of EAs will get you into deep water if a trend goes on for too long.  And every once in awhile this happens.  I'm not  saying I'm against the concept it just needs to be monitored and used at the right times.
Michalis Phylactou
11715
Michalis Phylactou  
Osama Shaban:

i believe Grid/Martingale/Average EAs can't be optimized because most of time you have no stop loss

and they are based on opening more orders when price went against you, So, there will be no idea 

how price will go against you nor how many orders will open.

This is my own opinion based on long years of experience doing such EAs.  :(

Yes 
I do share same opinion
Dua Yong Rew
5456
Dua Yong Rew  

4) Closing the basket of trades when their average profit is in profit (Potentially also trailing their profit).

maybe you can consider to close trades that can cancel off each other not waiting for the basket to be in profit?

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