Adding Multi Unit tactic | Extra trade

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Belpu Prajwal Rao
  • updated
  • Suspended

When the signal is generated, instead of entering 1 trade enter 2+ trades are entered with a total risk not more than the original risk. And based on MA/ATRs/OBVs/DonchianChannel/Camarilla levels take profits on at least 1+ trade so that we secure the profits.

This is something like let's say, on EURUSD we have a buy signal @1.00000 and SL at 0.99985 and the lot size calculated to enter this trade was 1 standard lot, then the total risk amount is 15$+spread if any due to liquidity/slippage issues. So MultiUnit gives us the ability to buy with a strategy to close at 0.5% appreciation on OBVs value, ie., we buy 3 trades with 0.3,0.3,0.4 lot size with the same SL, so we can close the 0.4 deal with OBVs .5% appreciation.

In the above case, let's say TP1 was OBVs 0.5% and the next one, TP2, is 1% higher on OBVs( as only 3 trades opened with only the 1 trade originally opened due to signal, so only 2 TPs).

So requirements with this type of trading are as follows(parameters):
1) How many different trades to open
2) Do we risk more than normal, if yes, by how much % more
3) Which indicator to go with( OBV/ATR/DC, Camarilla)
4) TP levels to take separated by  ',' in the text field.(NOTE: for camarilla mostly this is not required field)

5) What is the SL level to take after taking profits on the MultiUnit trade( TP1)?
6) Do we stop trading if profit reaches a limit after TP1(%)
7) Do we stop trading if loss reaches a limit before TP1(%)

Replies 7
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1
Andrey Khatimlianskyi
  • Under review

It's hard to manage several trades (units) at the same level. Other strategies will not work with them..

I guess your idea can be partially done with partial close on some signal with min distance between closes, and with SL move after each partial close. But it is not very easy to implement and should be formalized first.

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1
Hannes Waser

I like the idea. Are there any books, videos, articles to check how it can work?

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0
Belpu Prajwal Rao
Quote from Hannes Waser

I like the idea. Are there any books, videos, articles to check how it can work?

The source of this information is in a book written by Mr Courtney D Smith:

The link to it is here:

Amazon.com: How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life (Wiley Trading Book 413) eBook : Smith, Courtney: Kindle Store

Basically says that the path you take to reach your destination is more important as it is the only factor which differs between the top 5% trades who make money consistently YoY.

You and the top 5% trade might put the same direction trade but he has better rules and judgement to alter the SL or TP or close partials so the path he takes to reach his final destination will be much different. For example, I had a friend of mine who used to increase the  SL and decrease the SL based on the volatility of markets. I asked him why he is increasing the SL ( I've never seen anyone do that before) and he said when markets get volatile in a liquid situation/markets, then markets try to grab stop losses or simply move against the old news fundamentals and stop-out traders, in order to find a sweet spot you need to backtest and find the volatility factors and increase or decrease the SL if necessary on daily basis.[ He is using a daily system of trading]. Once every day gives in 15 minutes or so to trade and then goes to  Job for now. If he has time he trades demo accounts. LOL...

So the MultiUnit tactic is one of the path makers where you find what is the optimal move in % of price/indicator moves over a technique and always use it to take quick profits. Actually, the SLs will be much different and more over there is something called the EV(Effective value over time) which is a factor which tells whether we can put in a trade or not.
*EV=(%W ∗ AvgWinner) − (%L ∗ AvgLoser)                                              ~ So you need to know what EV is and after adding spreads, does this become profitable or not? Here we should ignore the risk-to-reward ratio with the EV as sometimes your risk: reward would be 1000 but the EV will be much more positive, should take the trade.

*Just these things become complicated, so, let's see improvement in future for this.

Avatar
0
Andrey Khatimlianskyi
Quote from Belpu Prajwal Rao

The source of this information is in a book written by Mr Courtney D Smith:

The link to it is here:

Amazon.com: How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life (Wiley Trading Book 413) eBook : Smith, Courtney: Kindle Store

Basically says that the path you take to reach your destination is more important as it is the only factor which differs between the top 5% trades who make money consistently YoY.

You and the top 5% trade might put the same direction trade but he has better rules and judgement to alter the SL or TP or close partials so the path he takes to reach his final destination will be much different. For example, I had a friend of mine who used to increase the  SL and decrease the SL based on the volatility of markets. I asked him why he is increasing the SL ( I've never seen anyone do that before) and he said when markets get volatile in a liquid situation/markets, then markets try to grab stop losses or simply move against the old news fundamentals and stop-out traders, in order to find a sweet spot you need to backtest and find the volatility factors and increase or decrease the SL if necessary on daily basis.[ He is using a daily system of trading]. Once every day gives in 15 minutes or so to trade and then goes to  Job for now. If he has time he trades demo accounts. LOL...

So the MultiUnit tactic is one of the path makers where you find what is the optimal move in % of price/indicator moves over a technique and always use it to take quick profits. Actually, the SLs will be much different and more over there is something called the EV(Effective value over time) which is a factor which tells whether we can put in a trade or not.
*EV=(%W ∗ AvgWinner) − (%L ∗ AvgLoser)                                              ~ So you need to know what EV is and after adding spreads, does this become profitable or not? Here we should ignore the risk-to-reward ratio with the EV as sometimes your risk: reward would be 1000 but the EV will be much more positive, should take the trade.

*Just these things become complicated, so, let's see improvement in future for this.

What about configuring several EAs with the same entry signal but different SL/TP/TS/BE rules and running them on the same account? Seems it will work like you want.

With multi-set/multi-currency version of the EA it will be possible with a single copy, backtesting in MT5 will also be available.

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1
Belpu Prajwal Rao
Quote from Andrey Khatimlianskyi

What about configuring several EAs with the same entry signal but different SL/TP/TS/BE rules and running them on the same account? Seems it will work like you want.

With multi-set/multi-currency version of the EA it will be possible with a single copy, backtesting in MT5 will also be available.

Oh yes, This should do the trick. Then, for now, we can say this is partially completed or move this task to the future as it has a workaround. Simply focusing on what is very urgent and necessary is best. Can we have the EV factor calculated for each trade we put in?? This will help us determine the size of the trade and also TP/SL tweaking.


Just putting the EV formula here:

EV=(%W*AvgWinner)-(%L*AvgLoser)
Here %W is the % of winners,
%L is the % if losing trades for the  technique
AvgWinner is the Avg of the amount of money made on trades
AvgLoser is the Avg of the  amount of money lost on trades

Thanks for this idea. It flashed for me but did not consider it as it is not energy efficient.

Just to iterate what you mentioned, to use the MultiUnit tactic we simply use different charts and put the EA with a different magic numbers and set the parameter according to our needs.

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1
Andrey Khatimlianskyi
  • Suspended
Quote from Belpu Prajwal Rao

Oh yes, This should do the trick. Then, for now, we can say this is partially completed or move this task to the future as it has a workaround. Simply focusing on what is very urgent and necessary is best. Can we have the EV factor calculated for each trade we put in?? This will help us determine the size of the trade and also TP/SL tweaking.


Just putting the EV formula here:

EV=(%W*AvgWinner)-(%L*AvgLoser)
Here %W is the % of winners,
%L is the % if losing trades for the  technique
AvgWinner is the Avg of the amount of money made on trades
AvgLoser is the Avg of the  amount of money lost on trades

Thanks for this idea. It flashed for me but did not consider it as it is not energy efficient.

Just to iterate what you mentioned, to use the MultiUnit tactic we simply use different charts and put the EA with a different magic numbers and set the parameter according to our needs.

You can get all this data from the StrategyTester report or even from the account report. No need to put these calculations into the CP EA.

Thanks for understanding! Will focus on the main things )

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0
Belpu Prajwal Rao
Quote from Andrey Khatimlianskyi

You can get all this data from the StrategyTester report or even from the account report. No need to put these calculations into the CP EA.

Thanks for understanding! Will focus on the main things )

Yes, I will do that, thanks for looking into this.