I have developed a logic (and an EA working on that basis) and think it should be extremely profitable. As I don’t have a financial educational background, I need a group of traders to discuss and to do some fine-tuning, and to find best values, please.
It is mainly reverse Martingale, combined with Hedge, and with Stop loss and Take profit.
The logic is that there are two systems, working simultaneously, exactly identically, but in the opposite direction. First system is doing Buying, and the second is Selling.
Lets take the Buy system first. When the system starts (the EA is loaded), it opens a trade instantly at the market price.
If it goes negative, it is stopped out by Stop loss. With trade closing in loss, another trade of same size in same direction is opened. The size of the trade on the losing side will remain the same. (In the EA, the new trade is opened at the opening of new bar, but that is unnecessary).
If it goes positive, further trades will be opened at the predetermined distance (Pipsteps), until Take profit is reached. Trade size for the winning side of the trades will go on increasing with Reverse Martingale (Either multiplied with a factor like 1.4 to 2, or simple addition like 0.02 / 0.03 / 0.04 / 0.05 / 0.06 / 0.07 / 0.08 / 0.09).
So, lets say a Buy with size 0.01 is opened at 0 pips, it may be stopped out at -200 pips, opening another buy at the opening of new bar. If it goes positive, further trades at every 20 pips are opened with Martingale sizes until all trades are closed at Take profit.
Now Take profit could be in two ways, either fixed pips, or fixed money.
Fixed Pips: Both SL and TP are at equal distant, lets say 200 pips. Theoretically the win ratio should be 50%. Here, money wise, TP will be many many times bigger than SL.
Fixed Money: Both SL and TP set at $20, with starting lot size 0.01. SL will be hit 200 pips away, but positive side having many trades, will reach much earlier.
Sell System is exactly the same, but in the opposite direction.
As there is Buy and Sell system going on together, wherever the market goes, it will do a small loss, and a very big profit.
The only losses will be when the price reverses without hitting the Take profit (or Stop loss with the other system)
I might have made the explanation complicated, but if you run EA in strategy tester with visual chart, with turning on one system (Buy or sell) one at a time, and turn off the other system, all will be clear in just few seconds, as the logic is extremely simple. Attaching a screenshot of strategy tester in visual mode, running the Buy system only.
It could be used to hunt small profits as in scalping, to big moves as in swing trade.
Let us help each other!!
Green test.mq4.zip (2.76 KB)