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Thread: Simpel Idea, surely it exsists already.

  1. #11
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    Quote Originally Posted by CodingChris View Post
    Sorry for the delay, have been hard working on some other EAs.
    Now I've finished your system, but can't get it working profitable. The problem with this are strong trends to one direction. I've suffered several margin calls with backtests, so be careful and use it on your own risk ... as far as I see, it can't work profitable at all.
    Its indeed a tricky system. When i started this tread I also started a new test run (demo) with 40000 dollars. At the moment it has a balance of 49168,30 an equity of 40053,08 and a margin of 10565,83 thats a margin level of 379,08 %

    There are 1.00 long and 4,20 short meaning that if the euro drops the equity would rise and if the euro would go past 1,4500 it would go under 200% and the savety would need to kick in.

    Ill test your hard work and keep you posted. And thanks again for all the trouble. The extra waiting was no problem at al.

    Signened Marloc

  2. #12
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    OK, to keep you from trying this system in a real money account, consider this:

    You have 4.20 short now, which means most of them will not resolve within at least the next few days. That are 840 PIPS bound there! Price has to drop that much to resolve those positions.
    So you have loosing ones and half hedge them if price continues going up. Meaning you will have e.g. 4.30 short after the next step and then opening long for 1.15.
    If price continues going up, you will get profit from a total of 2.15, but losses from a total of 4.30.

    Understand what I want to point out? Losses always are greater than winnings in your half hedge system. Margin Level will not go up with this hedging, it even will not stay the same but go down if you don't do a 100% hedge. So there will be a high - and in my opinion really too high - risk for a margin call at the point the "protection routine" hits.

  3. #13
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    Quote Originally Posted by CodingChris View Post
    OK, to keep you from trying this system in a real money account, consider this:

    You have 4.20 short now, which means most of them will not resolve within at least the next few days. That are 840 PIPS bound there! Price has to drop that much to resolve those positions.
    So you have loosing ones and half hedge them if price continues going up. Meaning you will have e.g. 4.30 short after the next step and then opening long for 1.15.
    If price continues going up, you will get profit from a total of 2.15, but losses from a total of 4.30.

    Understand what I want to point out? Losses always are greater than winnings in your half hedge system. Margin Level will not go up with this hedging, it even will not stay the same but go down if you don't do a 100% hedge. So there will be a high - and in my opinion really too high - risk for a margin call at the point the "protection routine" hits.
    Yes, I understand that. I figured as much that you coded it that way. Its not what i ment with the system, but I need a few trading days to run your work to figure out how to better explain my system.

    I'll give it a try tough

    Actualy I dont want to halve hedge only in the case when i'm going below 200% margin. thats purely to give me the time to react manualy to the market if it goes to long or to fast in one direction. Best is ofcourse to let the system run for a short time and when the equity is about 10% more just close and start over. Never needing a halve or full hedged grid. (I would remove those if the market would go the opisite direction)

    for instance my quote I made where the results of friday. At the moment they are Balance 49338,27 equity 41414,08 margin 8422,98 491,94% Margin. Meaning if I closed all trades now I would have earned 1400 dollars. Thats in one month and I never went under 200% so i never needed to hedge the system manualy.

    I need to go to work, but I hope it will clear up my Idea.

    Marloc

  4. #14
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    Hi Chris,

    Now at work im rereading your anser. Does the system you coded halve hedge when i reach 200% or does it always 1/2 hedge regardless of how much margin remains?

    anyway im running a new demo now with low cash flow. So the margin of 200% will hopefully be reached soon to see how the system reacts.

    High regards,
    Marloc

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    I did it the way you explained with the picture in the first posting. When Margin Level is below 200, the hedge routine hits.
    If margin level is above 200%, it will continue waiting for further grid steps and do whatever has to be done.

    The main problem with the system is that it opens [number of grid steps] positions, e.g. if price moves 8x20 PIPs to one direction, you will have 8 positions. There is no way to reduce this amount of open positions any more. So this is where the main trouble comes from, at a certain time there will be the point account balance isn't high enough to hold that many positions -> complete crash.

  6. #16
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    Quote Originally Posted by CodingChris View Post
    I did it the way you explained with the picture in the first posting. When Margin Level is below 200, the hedge routine hits.
    If margin level is above 200%, it will continue waiting for further grid steps and do whatever has to be done.

    The main problem with the system is that it opens [number of grid steps] positions, e.g. if price moves 8x20 PIPs to one direction, you will have 8 positions. There is no way to reduce this amount of open positions any more. So this is where the main trouble comes from, at a certain time there will be the point account balance isn't high enough to hold that many positions -> complete crash.
    It indeed works like I dicribed the test of 10000 indeed went under 200% sadly it was on the way home so i could not see its effect on my margin. But if it did not hedge the demo would have crashed in mere hours. At the moment its almost back to 10000 again. Ill keep you posted and this system is indeed not save to be left alone.

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    OK, with 10,000 it will take quite long when using 0.1 Lots on each position. But do you really plan to invest 10k with a system that may crash? :-)

  8. #18
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    Well i use a micro account. meaning that 1 dollar represents 100 dollar in meta trader. That way its fun,l but it wont bankrupt me

    Its ideal way to learn forex trading. ofcourse in the last 1 1/2 year I learned a lot and can better predict what the euro will do, but don't have the time to watch my deals 24/6. This system will work if i do my homework and dont get greedy. I need to close the grid when there is a profit of about 10%. But in the last year I lost a few 100 dollars and this will help prevent it.
    Last edited by marloc; 04-19-2011 at 07:17.

  9. #19
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    Goodmorning Chris,

    It does not work yet like I invissioned.

    Like i said i started a demo 2 days ago with 10000 dollar. When I look at the trades that have been placed and closed im a bit puzzeld. 0.05 and 0.22 long should not be placed if a lot is defined at .1 and a hedge lot at .5

    Also when i went under 200% it did not place long trades when the euro was going down. Is it posible for U to also test it realtime with a demo acount so u can see how it reacts realtime?

  10. #20
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    It is 50% hedge as you mentioned later in this thread. With the 0.5 you will be trapped into an endless loop if you don't have 0.5 or a multiple of it on the other side.
    E.g. you have 0.4 long, margin falls below 200%, it opens 0.5 short. Next step, you will have e.g. a total of 0.6 short now compared to 0.4 long, so add 0.5 long. Next step, 0.9 long against 0.6 short etc.
    Can you please post your demo statement so I can take a look if there is an error or just a matter of understanding something wrong?

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