Partial close of martingale trades with counter trades, after maximum number of trades are reached in martingale

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Sai Pratap
  • updated
  • Completed

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.

Forex.pdf

Duplicates 1
Counter Loss: Auto Hedge with starting lot & step options

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.

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Andrey Khatimlianskyi
  • Under review

Thank you for your suggestion!

Let's divide it into 2 parts.

1. In case we have maximum number of martingale deals opened, the start lot for the opposite direction should be increased by some coefficient (5 in your example). It will increase the profit in the long term trend.

2. Opposite deals profit should be used for partial close of main series loss.

Do I understand you well? Will you able to trade like you want with these 2 improvements?

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Sai Pratap
Quote from Andrey Khatimlianskyi

Thank you for your suggestion!

Let's divide it into 2 parts.

1. In case we have maximum number of martingale deals opened, the start lot for the opposite direction should be increased by some coefficient (5 in your example). It will increase the profit in the long term trend.

2. Opposite deals profit should be used for partial close of main series loss.

Do I understand you well? Will you able to trade like you want with these 2 improvements?

Yes sir. Ur understanding is perfect.

The co-efficient for opposite trade is to be backtested and arrived. I just took 5 as an example.

Also please note that martingale of main series should not open new trade after partial close.

Thanks 

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2
Andrey Khatimlianskyi
  • Planned (collecting votes)

Great, let's implement it!

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Ocxy Codine

My observations of the martingale is that. Let's say the trend is up fewer buy trades are usually opened and more sell trades are opened based on Bollinger concept that market will always move in zig-zag so the martin here is to gain from reversals of market and not from direction of the market?

How about we add a section to choose trading methods, if to enter trades on trends only or on reversals!

Don't Forget to add news filters, so the EA uses the above partial close to even the loses then close all open trades with profits and wait some hours after news to resume trading!

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Sai Pratap
Quote from Ocxy Codine

My observations of the martingale is that. Let's say the trend is up fewer buy trades are usually opened and more sell trades are opened based on Bollinger concept that market will always move in zig-zag so the martin here is to gain from reversals of market and not from direction of the market?

How about we add a section to choose trading methods, if to enter trades on trends only or on reversals!

Don't Forget to add news filters, so the EA uses the above partial close to even the loses then close all open trades with profits and wait some hours after news to resume trading!

Would be more helpful if u can guide how to identify such reversals plz.

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Ocxy Codine
Quote from Sai Pratap

Would be more helpful if u can guide how to identify such reversals plz.

One i can think of is break out strategy. For instance if price moves lets say 10 pips within 15 seconds in opposite direction is sign that reversal momentum is building up.

Alternatively is to use trend line to determine breakout, whichever is easier for the boss to implement. 

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gamal rizaldi

yes you right, cool. this idea focused on the options that already exist in the previous setting, especially for expanding the auto hedge settings. will continue to your idea.

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0
gamal rizaldi
Quote from Sai Pratap

Yes sir. Ur understanding is perfect.

The co-efficient for opposite trade is to be backtested and arrived. I just took 5 as an example.

Also please note that martingale of main series should not open new trade after partial close.

Thanks 

More detail about what options will be added to cp for counter loss?

For example: Expanding the auto hedge settings, 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.


And for the partial close, it must partial close with other directions not only for buy or sell only, but it can do both.. and if partial close execute with other directions (because the first direction is loss and after auto hedge is execute [auto hedge enable] to other direction transaction [with different lot/coefficient/step) it should trigger the disable new deal on loss direction and continue to auto hedge direction.

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0
Andrey Khatimlianskyi
  • Completed

Done in 2.32.2

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Ocxy Codine

@sai have you been able to back-test this new feature?

what is your experience like?