Page 3 of 3 FirstFirst 123
Results 21 to 22 of 22
 2 Attachment(s)    

Thread: Simpel Idea, surely it exsists already.

  1. #21
    Junior Member
    Join Date
    Jun 2009


    Ok let me see if I can better explain what I mean. Because the system in its basic is very simple and only the failsafe makes it a bit complicated to explain and maybe program. I still have a bit of a problem calculating what the downward pull is so I might make a miscalculation in my example.

    Say I started with 50.000,00 and after a day trading I would have 9 deals open. 4 of them long and 5 of them short. The market moved sideways when I started the grid in this case.
    If it keeps moving down more longs will be added and eventually 1 short will be standing against it. Each 20 pips 1 extra long will be added increasing the pull against the remaining free margin.
    Lets for arguments sake say the eur/usd rate is 1.4550
    That means $1455,00 a 0,1 lot. Each pip cost about $1,00. I actually have no clue how the leverage changes that.
    9 open deals means the first long would have been placed at 1.4630

    If the market keeps going down 200 pips (1,4350) would mean 10 longs will be placed and only 5 shorts will have compensated the downward burden.
    That would cost me 10x1455,00= $14550,00 + $900,00 (downward pips total) - $300,00 (compensated loss in hedged pips) = $15150,00
    My margin would then be 33138 : 16024 (margin) x100 = 206.8% almost going under the 200%
    20 more and I would be under the 200% (11x1455+920-320=16605)

    At that time the safety measures should kick in.

    I am very bad at predicting what margin will do if the safety kicks in, but I can simulate an example.
    Balance = 49901.18, Equity 49470.00, Margin 26672.73 and a free margin of 22797.27 (185%)

    This is with 9.40 long trades and 0.5 short trades. This would mean that if I want atleast 50% hedged I need to buy 10x0.50 lots
    After that it would look like this

    Balance = 50051.18, Equity 49470.00, Margin 19383.64 and free margin of 30086.36 (255.22%)
    9.40 long and 5.0 short, so 53% is hedged. There is no reason for the system to hedge any futher because margin is above 200%

    Does this better explain what I mean?

    ps ive holliday next week so maybe we could use msn or skype as a means of communication. Dont know if there is a lot of time difrents between us. (I live in holland)
    Last edited by marloc; 04-22-2011 at 12:26.

  2. #22
    Join Date
    Jan 2011


    OK, here is what really happens with your example:

    You have 4 long and 5 short, which will happen about one in 100 years. Remember price has to move within exactly the 20 PIPs range for that. A small breakout will result in take profit of one of those positions. TP is set to 20 too, so when putting in the spread a single move of 1-2 PIPs (depending on the spread level) will trigger TP of all positions that qualify, 4 long or 5 short.

    But let's think it is that way.
    So, you say market moves down. Let's say it is a 200 PIPs move, which will result in 10 more long, but TP of all short.
    You have a total of 14 long and 0 short now. Hedging half of it at the next grid step will result in 14 long and 7 short, which will NOT compensate your loss of longs when price moves further down. This is the main point here.

    I will send you my Skype nick with PM.

Similar Threads

  1. i have an EA idea
    By yuan83 in forum Ideas for expert advisors
    Replies: 0
    Last Post: 02-19-2014, 01:59
  2. New EA Idea
    By Dutchess in forum Ideas for expert advisors
    Replies: 5
    Last Post: 08-15-2010, 23:12
  3. An idea? or not?
    By shaya in forum Ideas for expert advisors
    Replies: 5
    Last Post: 10-25-2009, 19:40
  4. New idea.. at least for me
    By venci in forum Ideas for expert advisors
    Replies: 0
    Last Post: 06-10-2009, 13:08

Tags for this Thread

100, 2011, breakout, demo, eas, eur, eur/usd, eurusd, forex, forex trading, free, grid, hedge, hedging, high, home, how to, indicator, learn, live, low, main, manual, meta trader, mirror, pips, profit, profitable, real, simple, spread, system, test, time, trader, trading, usd

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts