Partial close of martingale trades with counter trades, after maximum number of trades are reached in martingale
This idea is to control the DD with counter trades once martingale reaches maximum number of trades.
Say for example, we have reached maximum number of trades in sell on 05.02.2021.
After that we received a buy signal on 08.02.2021.
So iam assuming that buy trade will be booked only with partial close to cover the loss of first trade of sell in martingale.
Like this I have worked out on next buy signals as well and taken the trades based on the existing factors. And closed all the trades with ZERO loss by 17.02.2021.
I have also worked out on hypothetical case i.e. what if movement has gone otherway round and is enclosed.
Here the debate/questions can be on:
1. What shud be starting lot size for the counter trades.
My reply : I have considered 0.5 (0.1(starting lot of martingale trade*5)) and continued with the factors as per martingale.
2. Whether we shud increase the distance between trades while taking counter trades?
My reply : Here I have used the same factors as that of martingale.
3. What if the movement could have been the other way round.
My reply : Then it will anyways be blowing off the account. If we open more sells, we will just be increasing the DD and account will blow off much early. With counter trades, we will be attracting less DD and will give better chance to keep the account live.
4. How to disable EA from opening new sell positions as we are closing sell position using partial close feature. Because EA will understand it as it has only 5 sell positions where are maximum allowed is 6. So it may try to open 6th sell trade.
My reply : I assumed that we can control EA not to open any more sell trades under martingale.
The idea may look crude, but I will be more than happy to discuss/clarify on the attachment. May be we need to have video conference call to discuss. :)
If we can have this feature enabled on EA, then we can workout on all the factors like distance between orders, lot size coefficient, starting lot size etc and optimize the EA so that we can take care in future.
The idea is to counter loss from previous transaction that already floating minus.
Counter transaction will execute with previous auto hedge after order settings + new starting lot size, new lot coefficient, new step size, new step coefficient options.