**cemal:**

You can google ''volatility based lot size calculation''.

Thank you for your information, Cemal.

1101

1512

You can google ''volatility based lot size calculation''.

Thank you for your information, Cemal.

28

Hi all,

I hope you are well. I want to develop an intelligence lot size algorithm for a Reward/Risk= 1/6 ratio.

I
use 5pips take
profits and 30 pips initial stop loss points. I have developed an EA. It have completed its live test for 3 weeks.

It
have obtained 81% success rate ( Total trades: 324, Profitable trades: 264). Because of 1/6 Reward/Risk ratio, the 81% success
rate is not enough to be profitable at the end of the month with "
__a stabil lot size__".

If I can develop a intelligence lot size algorithm, I can be in a profit with 1/6 Reward/Risk ratio at the end of the month. I wonder if there are any person who want to work with me about creating an intelligence algorithm via forum. If we have a success, we can apply this intelligence algorithm on a lot of system to be in a profit.

What is your approach? I have create the system's mathematical optimization model as follows;

*
The Aim Function: max ∑**i
lotsizei (35f(i)-30)*

The aim function aims to obtain max. profits. i represents how many trades and f(i) function indicates as follows;

*
0 ; in unsuccess trade.*

What is your ideas? :)

Best,

Murat Y.

56

Hi all,

I hope you are well. I want to develop an intelligence lot size algorithm for a Reward/Risk= 1/6 ratio.

I use
5pips take
profits and 30 pips initial stop loss points. I have developed an EA. It have completed its live test for 3 weeks.

It have
obtained 81% success rate ( Total trades: 324, Profitable trades: 264). Because of 1/6 Reward/Risk ratio, the 81% success rate is not
enough to be profitable at the end of the month with "
__a stabil lot size__".

What is your ideas? :)

Best,

Murat Y.

Ask yourself, "What am I doing with my profit from winning trades?" and "How can i use that to insulate myself from bad trades?"

Also, from 15 years experience; its easier to win big than win often. Good money management means being able to be wrong. A lot. This takes the stress out of trading.

And also... why are you willing to be in a bad trade for 6 times longer than a good one?

1512

Ask yourself, "What am I doing with my profit from winning trades?" and "How can i use that to insulate myself from bad trades?"

Also, from 15 years experience; its easier to win big than win often. Good money management means being able to be wrong. A lot. This takes the stress out of trading.

And also... why are you willing to be in a bad trade for 6 times longer than a good one?

Hi el_looto,

Thank you for your ideas and approaches. I will take that. I agree with you.

According to the literature and studies, max. 1:3 Reward/ Risk Ratio is suggested to traders to be in the profit for long term. However, if your system has a high winnig rate with lower than 1:3 Reward / Risk Ratio, the system can be logical and usefull with not in stabil lot size. I have 81% winning rate. So, 1:6 Reward / Risk Ratio is ok for me.

Also, my EA opens about 20-25 trades in a day. So, if I has a wrong trade, my EA can recover the loss in a day.

Thank you again!

11787

I used to search for a pure mathematical model based only in money management, involving risk-reward, martingale,hedging, locking ... all those rudimentaries technics well known ...

To keep it purely mathematical I was using only random entries, with no signal : so there was no optimization needed.

I got some good results but only on the first 4 months of the year 2018. Everything before and everything after is ???? : I admit I don't understand why.

I even asked for some help to a friend of mine particularly good in mathematics ... but he was busy, and didn't want to lose time on a project with no guarantee of profit

Finally the project has started ????? annoying me, it is now discontinued 😓😓😓😓😓 waiting for a new breath.

Moderator

23375

Please do not use expletives in your posts. You could be banned.

Replacing a letter with "*" will not do.

11787

Please do not use expletives in your posts. You could be banned.

Replacing a letter with "*" will not do.

😛👍👍👍

21617

Interesting . How much of the loss is due to spreads and commisions ?

I'll go with the first thing that comes to mind here -although extremely naive- :

If you reverse the system
will you end up with a 19% win rate which outweights the losses ?

1512

I used to search for a pure mathematical model based only in money management, involving risk-reward, martingale,hedging, locking ... all those rudimentaries technics well known ...

To keep it purely mathematical I was using only random entries, with no signal : so there was no optimization needed.

I got some good results but only on the first 4 months of the year 2018. Everything before and everything after is ???? : I admit I don't understand why.

I even asked for some help to a friend of mine particularly good in mathematics ... but he was busy, and didn't want to lose time on a project with no guarantee of profit

Finally the project has started ????? annoying me, it is now discontinued 😓😓😓😓😓 waiting for a new breath.

Hi Icham Aidibe,

I hope you are well. It was very intelligence approach to use random entries becuase you could focuse your mpney management model etc. firstly.

I have B.Sc. in Statistics and M.Sc. in Quantitative Methods degrees. I have several scientific papers including robust and fuzzy statistical modelling. I have also conference presentations around the world.

I think that I can improve your model and determine why you had bad results after 4 months, if you want.

The Signals and its logic is very important. However, the money management is more important than them, I think to be in a profit at the end of a month.

I used to some techniques for my EA's logic such as deep and reinceforcement learning, q learning etc. These appraches very inteligence approaches. For examğle, A kind of Neural Network called CNN can

be applied on the money management model.

I am willing to work with you. If we can have a success, the money management model can be applied on many systems including different winning rates and Reward/Risk Ratios.

Hi all,

I hope you are well. I want to develop an intelligence lot size algorithm for a Reward/Risk= 1/6 ratio.

I use 5pips take profits and 30 pips initial stop loss points. I have developed an EA. It have completed its live test for 3 weeks.

It have obtained 81% success rate ( Total trades: 324, Profitable trades: 264). Because of 1/6 Reward/Risk ratio, the 81% success rate is not enough to be profitable at the end of the month with "

a stabil lot size".If I can develop a intelligence lot size algorithm, I can be in a profit with 1/6 Reward/Risk ratio at the end of the month. I wonder if there are any person who want to work with me about creating an intelligence algorithm via forum. If we have a success, we can apply this intelligence algorithm on a lot of system to be in a profit.

What is your approach? I have create the system's mathematical optimization model as follows;

The Aim Function: max ∑i lotsizei (35f(i)-30)Constraints: lotsizei >=0.01,The aim function aims to obtain max. profits. i represents how many trades and f(i) function indicates as follows;

f(i)= 1 ; in success trade,0 ; in unsuccess trade.What is your ideas? :)

Best,

Murat Y.