It's not crazy .... or greed. There's a method to my madness....

Think about it, this method (assuming the price is going the wrong way) relies on retracement. You double (normally) your trade in the hope that the price will retrace. The increased stake, then recoups your losses from the previous trades.

Well, what makes this idea fail? The price may well retrace ... but not enough to hit your TP. It then continues on its way .. and you lose. Logically, then, you need to reduce the TP so that a small retracement is all that's needed to lock in your profit..... and what makes that fail? Well, if you only have a small TP, you won't make enough to cover the previous losses.

..... The solution... Increase the multiplier !

Make sense?

Ray.

Last week I tried out another philosophy of EA backed trading. As far as I have been able to discover there are (at least) two basic conceptions of trading with EAs:
- set and forget,
- use EAs as an itelligent trading tool, i.e. always keep the control in the hand of the trader and request the EA for trading advice and some mechanical operation.

Last week I applied the second approach (usually I use the first). I think the results speak for themselves. I have to remark though, that using this way the trader has to follow the market movement in his head and should try to predict the next probable price movement, etc. So, that method is rather for experienced traders who would not like to glued to the monitor screen all the day but follow the market with attention and intervene when it is needed.

The presets were:
TakeProfit=63
Lots=0.1
InitialStop=1.0
TrailingStop=0
MaxTrades=8
Multiplier=2
Pips=50
AccountProtection=1
OrderstoProtect=5
SecureProfit=50
mm=1
risk=5
AccountisNormal=1
ReverseCondition=0
Fast_MA=14
Slow_MA=26
MACD_SMA=9
Shift=1
Agressive_mode=0
FromHourTrade=0
ToHourTrade=12

Attached Images

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Attached Files

V12_NF_0330w.htm (9.3 KB, 56 views)

Let me guess, now IT claims that IT has the V12, and telling people IT V12mod is making lot of pips. I'm pretty sure IT will later on post some result and IT will try to sell EA. I dont know whether IT is human/male/female/object, so I use IT.

Regards

David

There is a way to calculate though. I've done it few months back, hereby to share it. Remember, use at your own risk!

PipStep=30, multiplier=6, Retrace needed=5+1pip to achieve profit
PipStep=30, multiplier=3, Retrace needed=10+1pip to achieve profit
PipStep=30, multiplier=2, Retrace needed=15+1pip to achieve profit
PipStep=30, multiplier=1, Retrace needed=30+1pip to achieve profit

The formula is : PipStep/multiplier=Retrace needed

So, its only a formula to calculate the risk exposure. I've let go of this issue since November thanksgiving day. It appear to be, when the market continue for 120pips spike, I already went margin call. Thats all. Therefor, I'm still working with traditional X2 factor. Anything lower then X2, I will change strategy, may be trendline trader. For indicator relying system, I'll go for traditional martingale.

Regards

David

Chrisstoff,

Since you're experience trader, and I can see you nail the trade very close. You can change the setup as Fast_MA=28, Slow_MA=62, MACD_SMA=18, remain Agressive_mode=false. That is more suitable for your TP, and also making crazy profits in shorter time frame. Good luck.

Regards

David

I see some people use a set of EAs. Could someone point me to the right direction (post) of EAs to use with 10 point 3?

Thanks

Ah... and I thought I was being so clever. I see you've got this down to a science.

My method is a bit more steam-driven. Try..tweak, try..tweak, try..tweak.....until you have something that works.

x3 seems to work (at least for EURCHF). We'll see how long this continues to behave as the backtest.

Fingers crossed.

Cheers,

Ray.

Oh! Look! You're #302 post. I've missed the historical new record moment while you're at #300 Anyway, I hope you never see the day it crash. I lost about 30% for the 1st shot when I was multipler 3. The second shot was a margin call on December, 2006. And all these happened on the same account...ermm.... luckily they happened on the same account

Regards

David

Hi David,

Thank you for the advice! I'm about to try the proposed settings next week. Just for checking I understand the other parameters well, I would like to ask:
- should I leave TP=63;
- should I use let's say M15 timeframe?

Regards,

Chrisstoff

The lower TF you trade, the lower TP you take. According to my trading experience, indicator is a set of code that made to detect the price changed from the past to generate a visual indication so we can analyze what to trade. Trading descreetion is the most important thing, whether the indicator is profitable or not, its solely depending on how the trader use it. MACD 28,62,18 trading descreetion is based on heaven and hell. When histogram previous bar jumped from below 0 to above 0, it will trend up... vice versa.

Regards

David

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