this could work, but what if the price never comes back !!
so in this way you need to trade with +ve sawp only and I would suggest use correlation hedge instead of normal hedge, for example if you have a trade stuck on EURUSD use USDCHF as a corrlated hedge , since the rnage of the USDCHF is larger and can cover up the losses faster , sure you need to keep in mind that the pip value of the USDCHF is less, but this pair is more active than EURUSD , so I would suggest to try hedging using USDCHF
Quote:
Originally Posted by hbud
Hi mini, hi all
Besides some other stuff, I'm constantly working on 10points and 5th element EAs too.
For example one of the 10p3 with modified trailing stops gave me a meager 18%profit in eurusd for the last 2 months. But the expert survived the huge moves at least.
And what really worked out well for both of them is going with the trend only,
instead of countertrend trading or putting them blindly in the market.
But to the topic above,if we pick up omelettes proposal and instead of "virtual trading" the upper levels
(which is the same as -let losses run- as far as I understand it)
the EA could freeze them, by hedging the sum of all open lots in the opposite
direction. ( No real further martingale trades would be opened from now on )This requires not more lots than they would be needed for the next step of the original martingale. ( next martingale-step lotsize minus the initial lotsize we have started with : 0.1 + 0.2 + 0.4 + 0.8 = 1.5 = 1.6 - 0.1 )
By this the account equity dosn't move a single millimeter.
And when the sea calms down and our pair is going to move in our favorite direction, the EA closes the hedgetrade.
This should be repeated one level above if we are on the wrong side again.
I think the spread would probably eat up the profits and maybe we would get out with some (small) losses, but after that we still have an existing account.
What do you think?
Or do I have overlooked something?
hbud
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