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Originally Posted by mike4X
Nice work Graham.
Looks very promising on first look.
Having 4 currency pairs at the same time will be a winner. In effect you get 8 trades runnning (2 each pair) and even if one of the pairs doesn't make a T/P you still make a profit (7 winners = 70 pips, 1 loser = 50 pips).
Say you pick the best 4 pairs. The statistics say that there is a 15% chance of a loser. So roughly you would get 1 losing trade every other day. So the above 20 pip profit day would be followed by an 80 pip profit day. Plus of course you can double the lots on the currency pair that lost.
Hell, even if you get 1 loss a day and double up that losing pair the next day you would end up with a tidy profit.
Can't wait for Sampson to code a working EA.
Mike4X.
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I posted on the original thread something i thought up on about Money Management, as it was brought up on there about "How do we possibly trade something like this?"
At any rate, here is the post i did on there"
Well, if we played the scenario of money management with Hedgehog, lets start with some numbers:
Money Management
With $10000, 5% would put us at $500, so mini lots are $50 so 10 mini lots would be 5% with $10000... Now with hedging, i would only calculate the worst side, seeing at 1 side always cashes out in profit. My logic would be to calculate it on the second level as well too where the first lost. Last week of trading on the major 7 pairs, out of 5 days and 2 timeframes (so over 130 total trades), i so far have had only 1 that was wrong twice in a row). By also keeping it to 5% that also gives us wiggle room for running a 3rd level once in a while when a trade is wrong twice in a row. My results seem that it is rare for the major pairs.
So based on that, and an average 6x size for round 2, and give maybe 4 wrong together at the same time, that would lead a total of 7lots first round, and 27 second round. 27 / 10 would be .37 base size for first round trades, and 2.59 for second round.
Using those numbers and my results last week my $5100 00:00GMt results would have net'd $190 Real dollars using .37 mini lots (these are the mini lots normally worth $1 / pip).
Now keep in mind, it isn't the first round that is using the 5%, cuz it is only using around 1.3%. It is the Martingale trades on second level. Also all my calculations are based on using the .37 lots for a 10TP. With MoneyQuests 5TP running 2 lots, you would have to double your lots to have the same profit, or my lot number for 1/2 the profit (because the TP is half). So my $190 example would actually be $95 using the 5TP using the same Money Management equation.
An idea to increase yield is to run higher lots on the trades with a better % success rate (proven over time and testing), like the EurJpy in my test. With it 18/18 last week, i would think it a better trade pair than say the eur/gbp which still has 5 open trades.
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Ok, so there ya go, that way the question on money management is out in the open as well.
Enjoy,
Graham