DD Reduction Algorithm

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GregoryAFX
  • updated
  • Completed

We need DrowDown Reduction Algotitm with Martingale!

We have 5 deals in short. DDRA will open deal in Buy with same lot as first (if Number order for DDRA=1) deal in Short, and close both then reach equal loss and profit (or pip\% profit). It is necessaty to stay alive then we see Bullrun. It will be another deals chain for Reduce lose deals.

It may be variables:

  • DD Reduction Algorithm - drawdown reduction algorithm it when last order with profit will be close with first order series with loss. True\False

  • Number order for DDRA - from which order the drawdown reduction algorithm is activated.

  • Profit for DDRA – percentage of profit when closing orders in the drawdown reduction mode.

Simple example without profit:

XAUUSD Sell lot 1 on 1730 = XAUUSD Buy lot 1 on 1735

XAUUSD Sell lot 2 on 1735 = XAUUSD Buy lot 2 on 1740

XAUUSD Sell lot 3 on 1740 = XAUUSD Buy lot 3 on 1745


Replies 18
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Andrey Khatimlianskyi
  • Under review

Hi!

1) What should EA do if price goes back right after DDRA deal is opened and main series is closed with profit?

2) What is the signal for open DDRA deal? Should it be opened immediately after order #x of main series is opened? If so, did you try "Auto-hedge after order"? What do you want to add to this hedge order?

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GregoryAFX

1. If the market goes against DDRA then TP rules are applied to the regular order and close the DDRA position when the regular position is profitable.

2. Never. Will try AH.

- Open immediately with opposite deal.

- Add TP for AH (Profit for DDRA)

- Close a losing position together with a winning AH position.

About auto-hedge. Is it close opposite deals (short) if AH deals (buy) well be profitable or equal as opposite?

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Andrey Khatimlianskyi
Quote from GregoryAFX

1. If the market goes against DDRA then TP rules are applied to the regular order and close the DDRA position when the regular position is profitable.

2. Never. Will try AH.

- Open immediately with opposite deal.

- Add TP for AH (Profit for DDRA)

- Close a losing position together with a winning AH position.

About auto-hedge. Is it close opposite deals (short) if AH deals (buy) well be profitable or equal as opposite?

1. It is little bit harder to implement... It is new rules for the deal. It is new type of deals (and new magic too).

2. Yep, you suggest to add Auto-hedge.

As for closing, we already have a suggestion to close deals partially with opposite deals profit — https://communitypowerea.userecho.com/en/communities/1/topics/225-partial-close-of-martingale-trades-with-counter-trades-after-maximum-number-of-trades-are-reached

And I guess it will be exactly what you need.

Do you agree?

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GregoryAFX

Answer some later. Need to try AH and understand another suggestion.

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Sai Pratap

Hi Gregory,

Ur idea looks like exactly mine, as posted by Andrey sir. May check my suggestion and cast ur vote to implement faster.

If it is not the same, may plz differentiate. Thanks

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GregoryAFX

Looked at the neighboring council. Our ideas are very similar. Voted. I will write my proposals in this thread, because it is more convenient for me.

Variables

- On off

- Trade number - from which trade the algorithm starts working. For example, starting from the 5th short trade, DDRA opens a buy trade to protect the 1st trade.

- How many losing trades are protected by DDRA - for example 3. So, in our example, starting from the opening of the 5th unprofitable trade in short, DDRA opens 3 buy trades at once to protect the first 3 unprofitable trades in short. If there is 1, then DDRA protects 1 trade each open starting from the 5th short trade. For example, on the 6th trade, he will defend the 2nd trade.

- The coefficient for multiplying the lot of a losing trade - for example, a losing trade is 1 lot, coefficient 1.2 means DDRA will open with lot 1.2.

- Profit - upon reaching what profit DDRA deals in pips, we close both deals. That is, you can use DDRA in 2 modes: 1st to protect a 1k1 trade - in this case, DDRA opens with the same lot as the main unprofitable trade and exits when both of them are at breakeven (if the profit is 0 pips). 2nd option for making money with DDRA or quick exit from the market (we increase the lot), but if the market goes against DDRA we will lose because of the increased DDRA lot.

- Stop loss for an open position DDRA in pips / at the breakeven point of the main position and DDRA.

- Close the unprofitable DDR along with the profit of the main trade - in the case when the market went against the DDR and returned to the levels of the main trade.

Questions:

Should EA continue to open losing trades if DDRA is enabled

- Yes. He must open before the limit on the number of deals in the series.

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Andrey Khatimlianskyi
  • Planned (collecting votes)
Quote from GregoryAFX

Looked at the neighboring council. Our ideas are very similar. Voted. I will write my proposals in this thread, because it is more convenient for me.

Variables

- On off

- Trade number - from which trade the algorithm starts working. For example, starting from the 5th short trade, DDRA opens a buy trade to protect the 1st trade.

- How many losing trades are protected by DDRA - for example 3. So, in our example, starting from the opening of the 5th unprofitable trade in short, DDRA opens 3 buy trades at once to protect the first 3 unprofitable trades in short. If there is 1, then DDRA protects 1 trade each open starting from the 5th short trade. For example, on the 6th trade, he will defend the 2nd trade.

- The coefficient for multiplying the lot of a losing trade - for example, a losing trade is 1 lot, coefficient 1.2 means DDRA will open with lot 1.2.

- Profit - upon reaching what profit DDRA deals in pips, we close both deals. That is, you can use DDRA in 2 modes: 1st to protect a 1k1 trade - in this case, DDRA opens with the same lot as the main unprofitable trade and exits when both of them are at breakeven (if the profit is 0 pips). 2nd option for making money with DDRA or quick exit from the market (we increase the lot), but if the market goes against DDRA we will lose because of the increased DDRA lot.

- Stop loss for an open position DDRA in pips / at the breakeven point of the main position and DDRA.

- Close the unprofitable DDR along with the profit of the main trade - in the case when the market went against the DDR and returned to the levels of the main trade.

Questions:

Should EA continue to open losing trades if DDRA is enabled

- Yes. He must open before the limit on the number of deals in the series.

Your algorithm little bit harder to implement.

I think we should start with simple "Close opposite trades with total profit" and then analyze results and come back to this topic.

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GregoryAFX
Quote from Andrey Khatimlianskyi

Your algorithm little bit harder to implement.

I think we should start with simple "Close opposite trades with total profit" and then analyze results and come back to this topic.

Ok, let's do it.

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GregoryAFX

Screens just for example from another bot.

Without DDRA DD66%. 

With DDRA DD33%.

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Kramarev
Quote from GregoryAFX

Screens just for example from another bot.

Without DDRA DD66%. 

With DDRA DD33%.

Wow! I also want to reduce my DD by 50%! What bot are these screenshots from?