learn how to earn money villagers [Episode 2] ! - page 117
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Here goes:
Don't kick me in the stomach, don't laugh loudly and don't call me a clown....
So, let's assume we've decided to buy by all means. As Roman says "beat it to the punch"... We opened to buy and the price went a STEP down. The farmer will take a hit and may be right, but after taking a hit he will stand against the move with a double lot...
I suggest, in spite of the seeming absurdity of the action, to close the order, giving the market one STEP and open again with a starting lot. Yes, and let's specify right away that I'm not talking about any martin - lot=const.
If the price has fallen by a STEP again, we give it up again and "reload". The price will be one STOP higher than the open price of the last order. Here is where the most interesting part starts - as soon as the profit (in pips) has reached the STEP value, we open another order (scale in).
The expected effect of this behavior is an excess of profits over losses due to the summing up of profitable positions only. As the 1st sacred cow used to say "Cut losses and let profits grow". That way losses will never exceed one STEP and profits will exceed and add up.
The same price path of, say, 5 STEPS taken "against the grain" will be given to the market at 1x1 i.e. 1+1+1+1+1=5, and "on the grain"?
1+2+3+4+5=15
To implement this algorithm, we still need to close the entire order stack on the given pair at the first negative step. Thus, a simple SL will not do.
Aren't you forgetting something? Well, you just "kick" me, and I will think about it.
For code simplicity, one. For "growing" the pack from the bottom - two.
Right, right.
You're not aware that the drain is at the rate of the spread.
that's quite a complicated algorithm until I figure it out!
Not at all - give one at a time and take back in packs. What's so hard about it?
Here goes:
Don't kick me in the stomach, don't laugh loudly and don't call me a clown....
So, let's assume we've decided to buy by all means. As Roman says "beat it to the punch"... We opened to buy and the price went a STEP down. The farmer will take a hit and may be right, but after taking a hit he will stand against the move with a double lot...
I suggest, in spite of the seeming absurdity of the action, to close the order, giving the market one STEP and open again with a starting lot. Yes, and let's specify right away that I'm not talking about any martin - lot=const.
If the price has fallen by a STEP again, we give it up again and "reload". The price will be one STOP higher than the open price of the last order. Here is where the most interesting part starts - as soon as the profit (in pips) has reached the STEP value, we open another order (scale in).
The expected effect of this behavior is an excess of profits over losses due to the summation of profitable positions only. As the 1st sacred cow used to say "Cut losses and let profits grow". That way, losses will never exceed one STEP and profits will exceed and add up.
The same price path of, say, 5 STEPS taken "against the grain" will be given to the market at 1x1 i.e. 1+1+1+1+1=5, and "on the grain"?
1+2+3+4+5=15
To implement this algorithm, we still need to close the entire order stack on the given pair at the first negative step. Thus, a simple SL will not do.
Aren't you forgetting something? Well, you "kick" me and I will think about it.
It's an interesting system) but will the market allow us to exceed the lots, because the market is kind of flat, we should write an EA and select an instrument, probably highly volatile and maybe not even a currency
need to think) how to write an EA
Interesting system) but will the market allow us to exceed the lots, because the market seems to be more of a flat, we need to write an advisor and select an instrument, probably highly volatile and maybe not even a currency
i have to think) how to write an EA
That's not all... :D
This stuff may be placed in a triangle like an arbitrage one or in a ring. We will get "wherever it goes just as long as it goes". That is, while one part is losing one, the other is accumulating summing up profits.
Think about it, Kostya.
you will get a lot of losses if you take a small step or not even a very small one.
If you take a long step, like H4 D1, the trade will be tiresomely long and the profit will be small
it would be interesting to check anyway
That's not all... :D
This stuff can then be put in an arbitration-like triangle or even in a ring. You get "wherever you go, just as long as you go". That is, while one part is losing one, the other is accumulating summing up profits.
Think about it, Kostya.
you will get a lot of losses if you take a small step or not even a very small one.
If you take a long step, like H4 D1, the trade will be tiresomely long and the profit will be small
it would be interesting to check anyway
This is a double-edged sword.
1. The smaller is the STEP:
1.1 More impact of the spread.
1.2 More frequent lots.
1.3 More cumulative profits for the same price move.
2. The bigger the pitch, the opposite.