Hedging, grid trading, same as Martingale. Martingale, Hedging and Grid : MHG - General - MQL5 programming forum (2016)
Martingale, guaranteed to blow your account eventually. If it's not profitable without, it is definitely not profitable with. Martingale vs. Non Martingale (Simplified RoR vs Profit and the Illusions) - MQL5 programming forum (2015)
Why it won't work: Calculate Loss from Lot Pips - MQL5 programming forum (2017) THIS Trading Strategy is a LIE... I took 100,000 TRADES with the Martingale Strategy - YouTube (2020.12.12)
Hi Tim Wilson,
it seems only Friends could write you a private message, so i send you an invitation.
Your citations illustrate the point that I was making that grid trading often receives a lot of criticism. What intrigues me is that whenever grid trading is mentioned, the subject of Martingale inevitably appears along side it. I have even come across traders who claim that Grid trading and Martingale are one and the same thing. As I said in my original post, Grid trading is a term that seems to mean different things to different people. This makes it very difficult to have an informed discussion on this subject because people are often talking about different things.
All I can say is that the project that I am proposing will have absolutely nothing to do with Martingale methods.
You said "for you, any algorithmic trading needs to be fully automated. No exceptions".
You are of course entitled to your view and it is one that seems to be shared by many others. My view however differs from yours.
I have studied traders for a number of years and have an interest and reasonable background in Artificial Intelligence (AI). My conclusion is that successful traders have developed the ability to utilise and coordinate numerous different parts of their mind in quite complex ways that enable them to make better than average trading decisions.
While A.I. has made leaps and bounds in recent years, there are still a number of areas where it does not perform well. No doubt this will change over time and the whole trading game will then change accordingly.
There may well be fully automated systems that can perform as well or better than human traders but I have yet to personally see one. On the contrary, all the automated systems that I have looked at or created have performed poorly compared to what I know good traders can achieve.
For the time being, I consider it better to use automated computation and A.I. to augment the human mind rather than to try and replace it. IMO many traders miss good opportunities that a hybrid approach could offer them because their focus is totally on "set and forget" automated trading.
Thanks for the good wishes. We can all do with a bit of encouragement at times as well as bit of good luck.
Hi Revo Trades,
I agree with you that the grid part is straight forward and the hard bit is managing the trades and the drawdown. While many grid traders finish up with huge drawdowns, I don't believe it is inevitable. On the contrary, some of my testing and investigation suggests that grid trading is possible with consistently very modest drawdown. If achieved, this then makes grid trading a very attractive proposition.
You also said that in your opinion, it is not necessary to develop a money management system as there are plenty of different ones available in the public domain. I am well aware of this, but it seems to me that the money/risk management is the area where substantial improvements can be made and this is what we are aiming to do.
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