i have a complex questions, im looking for a certin strategy / trade management system - page 2

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Nikolai Semko #: Fernando, I disagree. There are high-risk strategies that can be more successful in terms of profit and security (as paradoxical as it sounds) than conservative strategies. The main thing is to risk a small part of your own funds (let's say 1%), and store the rest in a safe place, and most importantly, you need clear discipline for partial withdrawal of funds when intermediate results are achieved. But it only works when the strategy is very effective (when the probability of doubling the deposit is 65-80% compared to losing it completely). First of all, this guarantees protection from black swans, which may arrive in large numbers in the near future. :))

Do you realise that even when saying you disagree, you are actually agreeing?

Irrespective of the merits or demerits of your "solution", the fact is that you have just demonstrated my point. You had to gain knowledge and experience to be able to come to such a conclusion. You would not have been able to offer any kind of solution if you had not first gained some level of knowledge and experience in trading, irrespective of the solution being valid or not.

 
tho93 #:

i also saw a second alternative, but its very complex, i dont understand the logic, here the picture

The EA hedges and adds positions in a way in which equity is kind of secured, it might have a lot of positions open but most are hedged, i would like to build a EA like that, but i dont get the logic


it starts with sells, if they go in profit it closes in profit, if the sells go in DD, it starts hedging and adding sells again at a higher price



I see a 21 ma in there . 

I don't like hedging personally . It is like people jumping on a bouncy castle , when a person lands succesfully another one is ejected . 

But the answer is test .

First you can go at the signal for initiating trades , optimize for potential . (you may use the custom optimization feature of the mt5 tester here where not optimizing for trade outcome comes in handy)

Then the more tricky hedging or reentry or recovery part .(that is when you have established the signal being trustworthy and you seek to utilize it further for those)

All this is theory though.  

 
Lorentzos Roussos #:

I see a 21 ma in there . 

I don't like hedging personally . It is like people jumping on a bouncy castle , when a person lands succesfully another one is ejected . 

But the answer is test .

First you can go at the signal for initiating trades , optimize for potential . (you may use the custom optimization feature of the mt5 tester here where not optimizing for trade outcome comes in handy)

Then the more tricky hedging or reentry or recovery part .(that is when you have established the signal being trustworthy and you seek to utilize it further for those)

All this is theory though.  

thanks for the help, will see what i can do and just test every strategy i can think of. Just hard to come up with them and build them to match my goal / idea.
 
Fernando Cariro #:

Do you realise that even when saying you disagree, you are actually agreeing?

Irrespective of the merits or demerits of your "solution", the fact is that you have just demonstrated my point. You had to gain knowledge and experience to be able to come to such a conclusion. You would not have been able to offer any kind of solution if you had not first gained some level of knowledge and experience in trading, irrespective of the solution being valid or not.

Yes, but I distinguish between the concepts: risk in strategy and risk in capital management.

PS 
Although, of course, given that he risks 99% to earn 1%, then this is a money management risk and therefore you, @Fernando, are right.

 
tho93 #:
thanks for the help, will see what i can do and just test every strategy i can think of. Just hard to come up with them and build them to match my goal / idea.

You can always let the machine find them , if you have a spare one and a lot of time .

I mean , we live in an age where a pc can do 5 quintillion calculations per hour but we still use trading methods developed by a doctor in Africa who was looking at charts on newspapers on his spare time . 

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