@MattyMoney - What’s the idea behind increasing the position size by 1.33 each round please?
(You’ve already increased the potential reward by pushing this out to 60 pips as opposed to the 20 pip risk from the stop being hit.)
@MattyMoney - What’s the idea behind increasing the position size by 1.33 each round please?
(You’ve already increased the potential reward by pushing this out to 60 pips as opposed to the 20 pip risk from the stop being hit.)
Ah, I think I got it. The 60 pip break-out has to pay for all the preceding stopped out trades and unless position size increases this won’t happen.
You beat me to it, tommor!
Yes, the increased position size is to overcome the accumulating losing positions,
If the initial 4-lot trade loses, you are down 4. (instead of 1, 1.33, etc, I will use the actual position size. Its easier to visualise)
The next trade risks 5.2lots.
If you win, you get 3 lots of 5.2 (15.6), less 4 lot loss.
If you lose, you now risk 6.8, on next trade.
If you win, you get 3 lots of 6,8 (20.4), less 4, less 5.2.
If you lose, you risk 9.4 on next trade.
If you win, you win 3 lots of 9.4 (28.2), less 4, less 5.2, less 6.8.
etc, etc.
(can you tell I’m a programmer! )
In the example he bailed out at around 2x, so made 12.5 lots x 40-ish pips. Pretty much break-even, but a positive return.
By hedging, I was referring to the 2 hedging strategies above. I agree that the one I’m making my EA do is extremely aggressive & can trigger the margin call quicker than the one in the video, which is a lot more conservative approach, but both of them will be locking in lots till the trade is over.
We all know that to Martingale is risky unless done properly
Because you are a bit concerned by the lot sizes growing bigger due to Martingale, but I strongly agree with you that the system you are using triggers the margin call less faster than the above hedging strategies.
None of the above are a Pros strategy, we all know, but by proper education on trading , can be made very useful, particularly your’s.
That, and more profits.
Here’s a detailed chart I use for each additional trade. It calculates SL, TP, total profit and margin:
through a sequence of 15 trades:
The ‘profit’ column is not completely accurate because it doesn’t include fees, which are tough to determine in advance because swap rates and financing fees vary and you never know how many days you’ll need to hold a position open.
The calculation here to determine profits (we’ll use trade #5) is TP amount #5 minus SL amount #4, 3, 2, & 1.
This is a large account, which gives me a big advantage. However, you can adjust this for any size account.
Beautiful thank you.
“since long” isnt much of an answer lol
I’m running @MattyMoney’s version of this strategy this morning on GBP/USD. Just very small starting positions as a trial exercise.
answer given by fellow traders already
You might find GBP pairs too volatile for this strategy using 20/60, I’ve never tried. You can try 40/120 if it is.
Today I wanted to base the min pip range figure on something rational so I’m using ATR (H1), which was 17 pips at the time I kicked off, so my ratio is 17/51. Obviously I may need to adjust this over the days, I can’t say using 1 x ATR is the definite approach.
The problem I had using this strategy with FX pairs is the wide spread at the NY close, which is why I switched to indices. For me, they have a much smaller spread.
He won’t mind that as his thread is now Automated