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Hedge saved you, who will save Hedge ? - page 22

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Joel Simmons
4027
Joel Simmons  
Icham Aidibe:

Note to the modo : Oh come on it's a serious topic ! 

As mother nature prefers it : profit/loss targets increased as there's hedge orders added.


This works sometimes, but i guess the only issue is the constant movement of TP level. It is understandable that because the lot size is bigger to move TP hirer because of the "momentum" of the new lot size. However sometimes, it good to get to breakeven so all trades can close, and restart the cycle. For example, after increase TP 4 Times, no longer increase TP, but close at Breakeven. 

Daniel Burac
42
Daniel Burac  

I think if price doesnt hit any tp it should increase the recovery zone size to avoid range market.

Joel Simmons
4027
Joel Simmons  
Daniel Burac:

I think if price doesnt hit any tp it should increase the recovery zone size to avoid range market.

Yep, this is correct. I have a version that does this. For example, the first 4 movements might be 100 pips apart, but then as it keeps moving, it may go to 200 pips apart. Get hirer, ok, 400 pips apart. It takes out a lot of noise in the market so fewer trades are triggered.

The downside, as you move the recovery zone further apart, the lots themselves take bigger losses. 

.08 on EURUSD

100 pip range loss = $80

200 pips range loss = $160

400 pips range loss = $320


I will say though that the GOOD does outweigh the bad moving the recovery zone. The key is not to have the normal trade pattern of 1,2,4,8,16,32,64 if you are moving the recovery zone (unless you plan to use $50,000 for such small overall profit). 

Icham Aidibe
11438
Icham Aidibe  

Forum on trading, automated trading systems and testing trading strategies

What's your opinion on optimization? I need some advice.

Icham Aidibe, 2018.06.17 01:56

Hedging is the name of the principle and it could apply in many manners. "These strategies" I'm referring to consist in increasing the lot size to recover a lost position. It's a bit caricatural.

I think it's much more relevant used as a protection with the same lot size, increasing only when it's unmistakable. I prefer it so, it's more mature.



Joel Simmons
4027
Joel Simmons  
Icham Aidibe:

Yep, this is kind of where I ended up. If it does increase, make it very minimal.  As I said before, even pattern 1,2,3,4,5,6 works to some degree. Also, even consider repeating pattern lots. 1,2,3,4,5,5,6,6.  I think of it as weight distribution of which sides needs to be "heaviest". Perhaps i should share signal at some point. The only issue with this strategy is that trades can be held for up to 3 months, and I know this will piss off subscribers. But the drawdown is low so that it can scale up nicely if the patience is there. People on this site tend to want quick money. 

Icham Aidibe
11438
Icham Aidibe  
Joel Simmons:

Yep, this is kind of where I ended up. If it does increase, make it very minimal.  As I said before, even pattern 1,2,3,4,5,6 works to some degree. Also, even consider repeating pattern lots. 1,2,3,4,5,5,6,6.  I think of it as weight distribution of which sides needs to be "heaviest". Perhaps i should share signal at some point. The only issue with this strategy is that trades can be held for up to 3 months, and I know this will piss off subscribers. But the drawdown is low so that it can scale up nicely if the patience is there. People on this site tend to want quick money. 

yup so definitively against the lot*3 at each order... well I was just thinking about the thing - I guess it's just another suggestion in the ocean of martingales/hedge EAs/strategies :) 

Joel Simmons
4027
Joel Simmons  
Icham Aidibe:

yup so definitively against the lot*3 at each order... well I was just thinking about the thing - I guess it's just another suggestion in the ocean of martingales/hedge EAs/strategies :) 

LOL, right, Great strategy if you manage millions of dollars for investors or join a prop trading company. But if you start will less then 20,000  then it may not be worth the risk. 

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