Grid Trading with Hedging

Grid Trading with Hedging

Postby Nufty » Mon May 29, 2017 8:24 am

Hi All

I have attached an EA I have written parts (badly), paid for developers to assist, had friends play with it and cut and paste others code to form a grid trading system. This appears to be a common theme on this forum, as I have seen a few ideas such as this.

I started the development of this bot in about 2013 when I thought I could rule the world with Martingale, but funny enough , I have come to the conclusion you cant beat those odds. I shelved it in about 2015, and rehashed it after reading some posts here.

I have changed the entry which was a simple break out strategy using Bol Bands, to something silly, as this breakout neither worked and was too complicated. The entry I think is key to future development if anyone sees any worth in it.

I have attached a some pics below which shows the basic grid - check the numbers as they didnt upload in the order I expected. It enters a trade with expectation of a win. But if it fails, rather than take the loss, it hedges the trade. It then sets a straddle of two pending orders, a long and a short. The idea is that if it hits one of these, the market has "found" a direction and momentum takes us to a new TP. Of course this is great until a ranging market.

The bot buys at a martingale of the previous hedge, and releases the losing side of the trade once one of the pending orders is taken. IE If the market opens the short side of the straddle, then the buy of the hedge is closed for a LOSS (Oh the pain :smile: ) and the two shorts, original and the martingale run for the TP for the basket of trades make a profit.

Great again until the sideways market.

Over time I added a turn off function, both manual and hard coded, so I could intervene in a ranging market, to then manually trade for the next position, but thats not what an EA is it - I want the holy grail where it does it for me lol

I share this as I was reading here about the "Auto Loss recovery" bot, and many other grid systems and thought if there was anyone interested to continue we could see how it works as a community.

What I think the bot needs is to kill off the grid. I think that a grid is just being lazy :) and once the hedge has happened, to stop looking for everything to make a profit, and just get out of the basket with a break even. The last part should kill off the need to martingale hopefully.

The grid should be replaced by the bot looking for another entry. That is, if an entry is coded that has a high(er) probability of success, not huge just more winners than looser's, then the hedge could be released on an expected winning trade, only to hedge again if it fails. Hence the idea for a better entry.

That is, The hedge stays put until the bot finds another entry, releases the losing side of the hedge, and lets the two directional trades for break even, which will be a smaller TP than the original, as it just needs to clean up the losing trades.

Maybe.

I am concerned a little about large moves away from the hedge. But I feel as one sides huge loss is offset by the other sides gain, the equity of the account should still only be effected by the loss in between the hedge (plus swaps, comms, spread )

I am attached to this idea due to the time Ive put into it. But I could be convinced its just a silly idea and move on

Open to thoughts, positive and negative (although they might hurt :smile: )

Nuf

PS play with the bot on a demo - in its current format this will not work. You have been warned :)
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Grid Trading with Hedging

Postby SteveHopwood » Tue May 30, 2017 12:10 am

I have locked this thread because it is stupid.

Nufty, there are threads here that will teach you to trade. Use them.
Read the effing manual, ok?

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