Hey FF members,
So I have built some code in Mt4, essentially to make my life easier when it gets to journaling.
I load the data into my database so I can easily analyse it.
So turns out that the strategy I use is profitable, although really counter intuitive.
The strategy is a simple gridding system with tiny (let's say 3) pip SL-s wherever it makes sense due to spread...like GBPUSD.
So on a higher level determine a direction, set some levels where I would like to enter and exit (Open + SL) and then let it run. Targets are not really set in stone, but definitely are from higher timeframes. This is swing trading.
Considering the volatility, it is rare that a position survives, but no problem, with a limit order, it automatically gets back into its place. I have a hard "stop doing so" after the 100th "reopen"... after that level gets "inactivated". This process is automatic.
So I set a level, a direction, SL, using consistently little Lot sizes due to margin requirements. Then let the code and price do its work.
When let's say the market is so volatile that it reverses against my level where let's say I have already lost like 10 positions ... (let's say like 30 + 10*spread ... like 40 pips) ... so market reverses like 50+ pips, I manually deactivate that level ... and open near the price... So if market reverses (now into my direction)... that position potentially "cover" some of the previous losses on its own. Like buying "cheaper".
Needless to say, it is very easy to achieve 20-50-100+ RR-s like this, but of course I always track the accumulated losses. And your success ratio is way below 5%.
The point is, it seems to me, when I get the direction right, I capture a trend, these levels accumulate profits much faster compared to small losses once they reach constant positive floating equity. So every other day I "add" extra levels to my "basket of levels". Due to margin ... I don't get greedy and stop this after like ~10 levels. This way entries are not that problematic for me.
Also if I am totally wrong about the trend even, I get an X amount of loss, then market doesn't trigger my positions "ever" again. So this is definitely not trading without SL. Also, I have to be realy unlucky to get a level, where it gets reopened like 20+ times ... So far 40 was the max for me. The position alone made itself back into profits after 2 weeks. Also don't care about swap much, that fee is tiny to pay compared to Total profits.
My question to you guys, have you seen, worked with, played with similar systems like this? I am doing this live since last December and I am happy with it so far.
I have closed almost 1300 positions in this timeframe... no margin calls
What is your opinion? What could be wrong with this?
Gabor.
So I have built some code in Mt4, essentially to make my life easier when it gets to journaling.
I load the data into my database so I can easily analyse it.
So turns out that the strategy I use is profitable, although really counter intuitive.
The strategy is a simple gridding system with tiny (let's say 3) pip SL-s wherever it makes sense due to spread...like GBPUSD.
So on a higher level determine a direction, set some levels where I would like to enter and exit (Open + SL) and then let it run. Targets are not really set in stone, but definitely are from higher timeframes. This is swing trading.
Considering the volatility, it is rare that a position survives, but no problem, with a limit order, it automatically gets back into its place. I have a hard "stop doing so" after the 100th "reopen"... after that level gets "inactivated". This process is automatic.
So I set a level, a direction, SL, using consistently little Lot sizes due to margin requirements. Then let the code and price do its work.
When let's say the market is so volatile that it reverses against my level where let's say I have already lost like 10 positions ... (let's say like 30 + 10*spread ... like 40 pips) ... so market reverses like 50+ pips, I manually deactivate that level ... and open near the price... So if market reverses (now into my direction)... that position potentially "cover" some of the previous losses on its own. Like buying "cheaper".
Needless to say, it is very easy to achieve 20-50-100+ RR-s like this, but of course I always track the accumulated losses. And your success ratio is way below 5%.
The point is, it seems to me, when I get the direction right, I capture a trend, these levels accumulate profits much faster compared to small losses once they reach constant positive floating equity. So every other day I "add" extra levels to my "basket of levels". Due to margin ... I don't get greedy and stop this after like ~10 levels. This way entries are not that problematic for me.
Also if I am totally wrong about the trend even, I get an X amount of loss, then market doesn't trigger my positions "ever" again. So this is definitely not trading without SL. Also, I have to be realy unlucky to get a level, where it gets reopened like 20+ times ... So far 40 was the max for me. The position alone made itself back into profits after 2 weeks. Also don't care about swap much, that fee is tiny to pay compared to Total profits.
My question to you guys, have you seen, worked with, played with similar systems like this? I am doing this live since last December and I am happy with it so far.
I have closed almost 1300 positions in this timeframe... no margin calls
What is your opinion? What could be wrong with this?
Gabor.