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Old 12-24-2006, 07:08 PM
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Quote:
Originally Posted by Ducati
Excellent work on this EA. I have an idea for a spinoff from this EA.

What about flipping the position on the pipstep instead of going against the trend? For example, if the EA opens a short at 1.2800 (Short .10 Lots), then the price goes up o 1.2810, we buy double the first position (Buy .20 Lots). If it goes back down to 1.2800, we short, but double the second position (Short .40 Lots). We take a fix profit at which time all positions are closed.

Lets say we make it $20 profit. The first positions has to move down by 22 pips with a 2 pip spread. The second position has to move 17 pips up, the third position has to move down by 15, and so fourth. The more positions open, the smaller the move has to be.

The nice thing about this strategy is that the margin is used up at a fib progression, and not the martingale progression because the positions hedge against each other. You make no big swings, but just a nice steady consistant profit.

Another idea is to pyramid in one direction with the same lots until a profit level is reached. Let's say we want $100. We buy at 1.2800, we buy again at 1.2810, 1.2820, and 1.2830. At 1.2840 we hit $100. However, lt's say it reverses at 1.2830. When the profit level of the first positions is 0 which would be at 1.2815, a sell of .20 lots is made and pyramids in the opposite direction.

Oh, I wanted to add that all these ideas work fantasticly in my head.

If you want to make 20 Pips profit and your going to apply the positions as in your example, at 10 Pips steps, your down 10 Pips on each order when you open the new step this have to be added in with your profit target. If you opened short 1 lot at 1.2800 and it went up 10 pips and you went long 2 lots at 1.2810 and say it went back to 1.2800 the first lot would be at negative the bid/ask spread and the other 2 would be negative the step and the spread. So each time the direction flipped it would increase the negative were you will be needing a larger profit target not a smaller one. Also if you use a fib progression your not dealing with doubleing the positions which would require even a larger targets to get you out.

Could be wrong

The Cockeyed Cowboy
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