Quote:
Originally Posted by omelette
I haven't looked at how this EA differs from other martingalers, apart from noting that it does not actually martingale (incremental increases, rather than doubling-up) - but you MUST increase the pips range in order to profit when you close a series of any length, otherwise the series may close successfully, but it will be at a loss! This is in effect, increasing your TP. Reducing your risk by incremental increases requires you to 'compensate' by increasing the range price must move before you may close profitably, everything comes at a price...
Or am I completely off-base here?...
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First, there is a Martingale option, it will double-up.
I've been using this type of grid for quite awhile, and my experience does not bear out your comments.
Eventually price simply moves far enough that one side has more winning lots than the other, thereby creating a profit.
As I said previously, when you do use lot incrementing you can risk a loss
in a fast market due to the increased leverage at work.
There is no need for a "dynamic" grid.
I agree with ES in that lot sizing using MM would be more appropriate given that profits are based on equity %.
The alternative would be a fixed profit amount.