exit from a location +martingale - page 7
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"And if you first put 4 and then remove the fourth in the opposite side as you say, then if the price goes in that direction (for example 50 points from the centre) and not in the direction where 4 is open, it is still the same, it will be worse than the lock."
i thought it was easier to get out of an incomplete lock (this situation is called an incomplete lock)...
"And if you first put 4 and then remove the fourth in the opposite side, as you say, if the price goes in that direction (for example, 50 points from the centre) and not in the direction where 4 open, it is still the same, it will be worse than the lock.
i thought it was easier to get out of an incomplete lock (this situation is called an incomplete lock)...
It all depends on where the price will go. For what purpose do you remove the fourth in the opposite direction? If the price gets to the point where it was supposed to stand and did not go further, but returned, it's good, and if it will go further, the loss will grow. The essence does not change when we set or delete the fourth order.
The disadvantages of this strategy are geometric increase of order lots, initially too big lot, availability of lots. If we place stops on 10_20 pips, there will be no lots. I will not say anything about the lack of trend detection, the initial aim of the strategy is to bypass it.
It all depends on where the price goes.
@If we put stops on 10_20 pips, there will be no lots.
i.e. in my case you need to put a stop on a buy position for 8 lots at 20 pips higher (let's call it point X)? based on my TS, all buy positions will be closed at this point X, they will be profitable, but incommensurable with a loss on buy positions, i.e. a big loss.
I am sorry for the incommensurable minus on the sell trades.
I meant to put a Stop Loss on each order. When buy trades open, there will be no more sell trades. Increasing the lot with geometric progression is called Martingale (full Martingale). It is used in case of losing. For example, if buy orders are set at the bottom, and sell - at full lock you will be in the plus. But all the same sooner or later a strong trend will come, the full lock will not happen and you will lose your deposit or its part (if you have time to close transactions).
If we have a lock, we have to keep in mind the following:
1) if you try to eliminate the lock by placing new orders, it does not make much sense to keep it, because we want to get profit at the expense of these new orders, which will compensate for the loss created by the lock. Therefore, if we simply accept the loss created by the lock and continue trading, we will gain profit equal to the loss of the lock. In addition, we free up margin.
2) by keeping the lock, we can only count on the fact that the price will fall below the bottom sell, and after all the sells are closed, the price will rise above the top buy and it will be possible to close the buy orders. Sometimes this favourable situation can occur. Otherwise, if there is a long trend and the price is unlikely to return within a reasonable time, the lock does not make sense either.