"Close partially with profit" + "Only after deal N" + "New martingale deals only on signal"

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Fabio Campos
  • updated
  • Completed

A martingale focused in lowering floating losses

A strategy in which if the martingale is over "x" number of trades open (or "x" floating loss) it starts to close the martingale partially everytime the signal changes to the opposite direction.

To exemplify: imagine that the 6th trade of a martingale becomes positive, and we already have a big floating loss, and the positive of the 6th trade isn't enough to close the prior 5 trades, but is enough to close the negative of the 5th, 4th and 3rd trades, so we would close the 6th, 5th, 4th and 3rd trades and let the 1st and 2nd open (and the martingale could even continue again). This way we would, hopefully, reduce the maximum potential DD

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Andrey Khatimlianskyi
  • Under review

1. When this algo must start it's work? After deal #X (parameter)? After loss >= X usd?


2. Which part of deals it must close?

Firstly, profit of 6th will be enough to cover only 5th loss. Then — to cover 5th and 4th.

If it close 6+5 with 0 profit, 1-4 deals continue to increase loss and how it will be covered?

3. After close of part of deals (4th, 5th and 6th for example), EA open the next martingale deal because price is far enough from last opened deal. So, it will reopen 4th deal at the current price right after closing.

Show me where I'm wrong.

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Fabio Campos

1- I thought 2 options (feel free to exclude one): 

First option: after the trade numbrer "x" of the martingale, for example: imagine max martingale trades = 10, if we set the #X = 6 it would start to work from the 6th trade on.

Second option: if all the trades of a martingale exceeded "x" usd or eur of open losses it starts to work.

2- all the parts you can, provided they are still in profit or break-even, but only when the signal gets the opposite direction, for example, we have a series of open BUYs and stoch got overbought (or another filter chosen indicates SELL). This moment if 6th trade is in profit enough to compensate the trades 5th and 4th, it would close the 6th, 5th and 4th.

3- don't you think that would improve the chances riding the trend rightly? (provided that we open the 4th deal only when the signal indicates BUY again). For me, it is like: we got a trend not long enough to close all the martingale deals in profit, so, let's decrease the qty of open lots (without incurring in losses) and start reopening again when a new indication of the signal is valid.

Maybe I am wrong too. Graphically would be easier to explain. Let me know and I can try to draw something. 

The main idea is to limit the margin used/floating losses once the martingale starts to become too big and we have some deals on positive but not a long enough trend to make them all positives.

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Andrey Khatimlianskyi

Idea is clear.

It seems we should add few options:

1. "Close on opposite signal" extend with "close partially with profit".

1a. Maybe, add the "only after order #N" parameter for previous mode.

2. Open new martingale deals only on signal (new parameter)

And you'll be able to test your idea.

Sounds good?

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Fabio Campos

Sounds very good.

Better than I thought initially 

Tks a lot

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Andrey Khatimlianskyi
  • Planned (collecting votes)

Trying to think smart ;)

Great! I'll rename the topic now. Let's wait for votes.

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Recep Apaydın

Number of Orders to Start Risk Control  :
Min gain for closing risk positions          :         (edit in terms of 1 usd or 1 pips)

The risk control will be active when the number of orders reaches or passes.

Sample:
Number of Orders to Start Risk Control: 6
Min gain for closing risk positions: 2 usd

The

number of buy or sell orders is 6 and above. When the last orders

opened turn into gain, they will be closed with a minimum gain of 2 USD,

together with some of the first orders in loss.

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Recep Apaydın

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Recep Apaydın

buy 4 forgot to draw. buy will close including 4.

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