Discussion of article "Useful and exotic techniques for automated trading" - page 2

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Aleksei Lesnikov:

I'm probably missing the point, but does it really have to be this way and not the other way round (highlighted)?

In this case, partial closing of a position occurs when the price movement and the set order coincide in direction. I.e. a profitable position is closed, while a losing position remains.

It should be like this, because the market structure on small timeframes is exactly flat, I tried to show it with the backtest. But this is on a global scale, there can be months or years of flat or trending, but in general it is a flat or waves, whatever you like.

 
Hi, first I want to thank you for the time, skill, knowledge and desire to write this and all the other articles you write, I don't have much time in forex, but I have seen as many eas as I can and they all have problems in generating profits, so I look with great interest at the systems based on grid, martingale and reverse martingale, purely mathematical approximations to the problem of the uncertainty of the market.
It strikes me that in a market that has millions of people (thousands in the mql5 community) articles like this have so few comments, maybe some are reading and testing without commenting, but I think it is necessary to dedicate a few words of thanks to the writer/publisher. Thank you very much.


 
Ricardo Andres Moscoloni:
Hi, first I want to thank you for the time, skill, knowledge and desire to write this and all the other articles you write, I don't have much time in forex, but I have seen as many eas as I can and they all have problems in generating profits, so I look with great interest at the systems based on grid, martingale and reverse martingale, purely mathematical approximations to the problem of the uncertainty of the market.
It strikes me that in a market that has millions of people (thousands in the mql5 community) articles like this have so few comments, maybe some are reading and testing without commenting, but I think it is necessary to dedicate a few words of thanks to the writer/publisher. Thank you very much.


Thank you for your rating, I hope you have found something useful for yourself that will bring you closer to profit. And about the fact that there are few comments, it seems to me that just very few people understand my articles. There are no easy solutions in them, because there are no easy solutions to make a profit. Not everyone can afford to delve so deeply into these issues, because it takes a catastrophically long time. I know that there are many literate people here, they most likely read my articles, note something for themselves and move on. I don’t think it’s scary, whoever wants to get knowledge or a result will receive it in one form or another.
 

Good day Eugene,

Thank you, I read with fascination, read a lot of useful information, and was surprised to see that the formula for the fan in martingale, derived by myself, is a special case of yours :-)

And here is an interesting question for me: If the fan did not work and the price continues to go in the direction opposite to the direction of trades, are there ways (except for simple locking) to amortise, to nullify the loss?



Thanks

Waldemar

 
wgomer:

Good day Eugene,

Thank you, I read with fascination, read a lot of useful information, and was surprised to see that the formula for the fan in martingale, derived by myself, is a special case of yours :-)

And here is an interesting question for me: If the fan did not work and the price continues to go in the direction opposite to the direction of trades, are there ways (except for simple locking) to amortise, to nullify the loss?



Thanks

Waldemar

There are no such methods, unfortunately. This is only a technique for situations when it is known that there will be a reversal, in other cases the mathematical expectation of winning is zero, as in martingale, grid and pyramiding. This is useful for understanding and to strengthen the mind, but in practical terms it is of little use. The most important thing we must realise is that the price cannot be slowed down and it is always possible that all our stops will be broken, no matter how much we would like it to be otherwise. There are ways to minimise these losses and maximise profits, there is a way to make a profit, but still any profit is associated with certain risks.

 
Evgeniy Ilin:

Unfortunately, there are no such methods. This is only a technique for situations when it is known that there will be a reversal, in other cases the mathematical expectation of winning is zero, as in martingale, grid and pyramiding. This is useful for understanding and to strengthen the mind, but in practical terms it is of little use. The most important thing we must realise is that the price cannot be slowed down and it is always possible that all our stops will be broken, no matter how much we would like it to be otherwise. There are ways to minimise these losses and maximise profits, there is a way to make a profit, but still any profit is associated with certain risks.

Thank you for your optimistic reply ;-)

Perhaps I have not worded my reply accurately, I am interested in the first half of your last sentence in your reply. The fact that the expectation of price fluctuations is zero is, if not an axiom, at least a rather obvious property of the currency market. Do you or here on your website have any materials on how to minimise losses in situations like the one I described?

Thanks in advance
Waldemar
 
wgomer:
Thank you for your optimistic answer ;-)

Perhaps, I did not formulate my answer precisely, I am interested in the first half of your last sentence in your answer. The fact that the expectation of price fluctuations is zero is, if not an axiom, at least a rather obvious property of the currency market. Do you or here on your website have any materials on how to minimise losses in situations like the one I described?

Thanks in advance
Waldemar
"formulated a question", not an "answer", of course.
 
wgomer:

Good day Eugene,

Thank you, I read with fascination, read a lot of useful information, and was surprised to see that the formula for the fan in martingale, derived by myself, is a special case of yours :-)

And here is an interesting question for me: If the fan did not work and the price continues to go in the direction opposite to the direction of trades, are there ways (except for simple locking) to amortise, to nullify the loss?



Thanks

Waldemar

You need to have a conditional level, which is take profit, this level is not mathematical from the opening price, but situational, for example, when the price touches the MA. Then at the moment of occurrence of this situation you can:

1. Close the position with a loss

2. Partially close the position, so as to conditionally fix the profit from the last trades and the loss from the primary trades - in this way the volume will be reduced and you can:

2.1 Continue building the grid

2.2 Place SL, fixing the risk at the point of probable continuation of the past trend.

 
wgomer:
Thank you for your optimistic answer ;-)

Perhaps, I did not formulate my answer precisely, I am interested in the first half of your last sentence in your answer. The fact that the expectation of price fluctuations is zero is, if not an axiom, at least a rather obvious property of the currency market. Do you or here on your website have any materials on how to minimise losses in situations like the one I described?

Thanks in advance
Waldemar.

The only way to minimise the loss or get to zero or plus is to keep building the grid for averaging. A step multiplier can help from building up volume. In other words, the step to each next order is increased by "K" times relative to the previous step. If "K" > 1, this is just our case, in this case we know that the reversal will happen and it may be very far from the current price, but it must happen. If "K" < 1, then only if we know that a price reversal is about to happen somewhere in a narrow area. Again, this works only if we know some market parameters and that they differ from random walk so much that we can apply one of these schemes. But personally, I am afraid to do this. This article does not have this multiplier in the Expert Advisor, but I have it in one of my Expert Advisors, I tested it all, and still it is a drain. This is more of a manual technique, you need a trader's eyes and eyes. The robot can just help with the calculation of targets and based on them to calculate the grid, click on the button - start building the grid and then he will do it himself. If the reversal did not occur in the expected area, it is better to just close the entire fan and everything and look for the next situation, with this approach the loss will be minimal.

 
Thank you so much for this increrible article.
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