Experts: Bounce Number for Grid/Martingale strategies Lot Sizing/Order Count set
Bounce Number for Grid/Martingale strategies Lot Sizing/Order Count set:
Author: Mahdi Ebrahimzadeh
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suppose when price touches one of two lines, RED or BLUE, we open a position in direction of price movement and put TP on its dedicated black line. like, if touched red line we will open a buy position and TP is upper black line.
Hence, one of 2 scenarios is waiting for us:
1- Price will move in favor of our trade and touches black line. (in above mentioned case, price will move to upper black line to hit TP)
2- price moves against our position and hits opposite color line, then we will open another position in direction of new movement of price. In the example, if price comes down and hits blue line we will open a Sell position (lot has to be more than 2 times of first position to have profit at end of story!)
these two scenario can be repeated again and again. Each touch is a BOUNCE. The tool I coded lets us to know how many bounces happened historically in a specific Symbol. this data will help us to prepare for numbered bounces of price from red-blue channel.
as an example: if EURUSD had 6 bounces for a channel with 600 points height, then we have to back calculate our risk distributed among 6 + 1 orders (considering lot mortification) to have profit end this challenge.
this was only one usage we can consider for tool. its statistical data is useful for anyone who likes to use Grid, Martingale, Hedge, .. strategies.
It is an illustration of range state of a selected symbol and gives us clues how bad it can treat with our strategies.
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Bounce Number for Grid/Martingale strategies Lot Sizing/Order Count set:
When we want to know how many times price will goes up and down 40 pips before breaking this channel, we will need Bounce Number tool.
Author: Mahdi Ebrahimzadeh