mr. bill,

how are you, my name is tiago and i am a forex trader here in the cayman islands....ive been trading forex for 7 years with success and was very interested in both your EA's......are they for sale or only a lease basis?? ill pay 1000 for each if they are for sale and do what you say they will do...are the gains of 1-2% in equity or balance?? very important to know that detail... if you are only leasing them where do i go to buy the lease and how much is it?? are you still making 1-2% per day with these EA's, hopefully you mean the gains are in equity. since i live here in the cayman islands paypal does not have cayman accounts so i was wondering if i can pay you through wire transfer or any other acceptable payment method. you can email me back at tiago_h@hotmail.com

yours repectfully,

tiago henriques, forex trader

The gains mentioned here are on balance and not equity. Your equity will be in negative most of the time.

Actually, that is not quite accurate.

if it is grid scalping, the gains are both equity and balance each time the grid is closed. Some take gains and go flat every day.

if it is long term grid trading (my preferred style) the gains soon exceed the drawdown. I am treating this like a business. To own a business, one must buy it - that is your drawdown. Each day or month you hope to make gains. At some point those are net gains.

By my calculations, using my robots and my approach and reinvesting the gains, my $5,000 account, will grow to pay out $500 per DAY in about 8 months. That is 10% per day on my original investment using my boring, conservative, low leverage approach.

Obviously, my equity, drawdown and balance will all go up. But, thinking of this as a business to generate daily cash, I just might sell my grid account to someone after it has seasoned for a year. They could buy it from me just like buying a business. Hmmm, that is an interesting idea, isn't it????

Take care,
Bill

Before I start "opening and closing so many trades at each level" - I'm hoping we are not talking about the Checkgrid in this question. Checkgrid opens trades at certain levels. Correlator opens trades over TIME as interest is earned.

SO, if it is the correlator in this question - it depends on your goals. You can open a hedged trade and do nothing. As the interest builds up, you can use that. Meanwhile those two pairs may be drifting apart and your interest may be going to pay for a negative spread.

Adding incremental trades has several benefits. First, you are averaging in over a range of prices. I am finding that after a few weeks, this really smooths out the swing in the drawdown/up. Second, you are also averaging in the correlation. Think about it - it is not correlated to the same level each day. Sometimes it is way off. So, by averaging this over time with multiple entries, the pairs seem to move together more consistently.

Third - MONEY!!!! By reinvesting the interest, the profits start to really build up. That doesn't happen if you just sit on one set of open pairs.

Hope this helps!
Bill

Your mistake is that you are not using the reverse Mongolian logic I designed into the program. Shame on you!

RELATIVE PROFIT = FALSE
Use this setting and the program will TP at the dollar amount you choose.

RELATIVE PROFIT = TRUE
This is the screwy one. If you want $150 TP on a set of trading pairs, and for the next trade you doubled your position to two sets of trading pairs wouldn't you also double your profit target? If you didn't do that, you are cutting your profit percentage in half each time you double your position, right.

So...relative profit makes a calculation. You tell it you want a certain profit amount ($200 for example) for each set of trading pairs. It calculates how many lots you have open at a given time and displays the actual/absolute value at which it will close the trade and TP. This is especially helpful if there are incremental trades and the total lots is a fun number like 3.04 - 5.87. It tracks this so you don't need to.

The math assumes the value you enter is for two lots. Assuming 100:1 leverage, two lots is $2,000. A $200 TP is 10% of $2,000, right? If we added another .5 lots on each side, our total lots is 3, or $3,000. With relative profit selected, it would calculate the actual/absolute TP target to be $300. Those calculated values and the settings are displayed on the screen and in the emails.

Note - it does NOT include swap in these calculations. Assuming the target is $500 and there is $300 in swap built up on the trade, the actual gain on your statement is $800.

Take care,
Bill

Thank you Bill for the explanation. I havn't gone upto the max drawdown so don't have idea how exactly the hedge thing works.

One question.
I have settings like this :
Order size : 0.01
Step : 5
TP : 8
Max DD Long/Short : 500
DD step : 100
DD Pips : 30
Trailing Stop : 30
Profit Target : 100

WHAT SHOULD BE MY BEST HEDGE LOT SIZE?

Thanks.

Muddyguy,

Is the CheckGrid_v1.5.4.ex4 platform specific? I have it running on IBFX but no matter what I do it will not run on Neuimex platform.

Do you (or anyone) have an idea why it won't?

Bruce

Bill,

Thanks... Now it makes sense.

Bruce

Bill,

One more question. Why the hedge lot trade has got a stoploss and no TP? What happens if the market retraces quickly after opening a hedge trade and stop loss is trigerred. The amount of loss will be big and how do you balance it?

Thanks.

I can't give you a number. Everytime I give a "number" it is used by someone who won't change it as the market changes, and then whines that it doesn't work. I get nasty emails about that.

So...first check page three of the FAQ to see a good rule of thumb starting point for your hedge lot size. Then consider the market you are in and your goals. I set my hedge far away as I don't want it hit. Others set it close because they want it involved in trading. I find that a close hedge lot simply gets hit a lot and costs money.

Once you have used page 3 of the FAQ to calculate your starting point on hedge size, then you can make it bigger or smaller. Both have benefits...

BIGGER HEDGE - this is great in a market that hits the maxdrawdown at full speed and keeps going. The hedge profits will pile up. But, if it just touches the first hedge position and reverses, you can wipe out many days of profits.

SMALLER HEDGE - this is great in a market that just touches your maxdrawdown and returns. The hedge lot loss will be small and perhaps you will still have a net profit day. It serves it's purpose as insurance. But, if it goes through that hedge and keeps running, you have only slowed down the speed of the drawdown.

So, my answer is a question - what do you think the market for your currency is going to do when/if it hits your hedge? Run through it or turn around?

Hope that helps,
Bill