Trend Following Grid Trading Strategy with Anti-Martingales Suggestions
Hello Beautiful People,
I have been playing with the idea of Grid Strategy and have been sharing discussions and set files in the group, my idea is it make money by anti-martingale during the trending period and accumulate account balance by breakevens during ranging periods. For that, I suggest the following,
Individual breakeven for anti-martingale only in points or coefficient to volatility, by using that we can effectively use anti-martingale with martingale. If price trends we will end up in profits and if it turns back before hitting our profit targets the anti-martingale trades will close at breakeven or small profit and martingale will help to achieve our targets. This effectively brings Average buys and average sells closer.
For Anti-martingale, If I am using a maximum of 10 trades and a scenario comes when I have both buys and sells open, it means the trade is stuck it requires a manual close to start a new series. My suggestion here is to allow 100 anti-martingale trades, but keep the buys and sells balanced. How? let's say the EA has opened 5 Anti-martingale trades and the price reversed, we should have the option to allow one or two extra anti-martingale to sell the anti-martingale series. meaning if we have input on the EA will open 1 more trade than the opposite anti-martingale trade. Currently, what happens now if we allow limited anti-martingale it gets stuck if the same number of trades are opened, and if we allow unlimited and we have a lot of anti-martingale open reversal kills the account DD. But by limiting trades of anti-martingale compared to our opposite side series we can reduce the DD further can close the anti-martingale trades by BE during reversal based on pair range and risk we want to take.
No doubt we can still get stuck between buy and sell anti-martingale, we can work out by using martingale either activating it on higher DD or using large martingale signals or by using existing excellent volatility settings thus bringing average buy and sell closer.
We already have monthly targets in the ea, which can be set at 25% or 50% of the strategy generated per month which we can work out by backtesting on various pairs. i.e. ea will work on increasing the account balance during the first two weeks and last two weeks it will just try and close the trades if hits the target level.
The above changes shouldn't affect martingale trades at all as I don't think we can have any better setting for martingales than what we got now.
Thank you for reading and appreciate your logical comments. Please vote and I promise if this idea works i will be able to provide more better set files to earn passive income every month.
These suggestions already implemented in 2.55.14 - https://t.me/CommunityPowerNews/170
Correct me if I'm wrong.