Martingale - add to position not close and re-open
Martingale - add to position not close and re-open
19 May 2016, 04:29
The martingale robot example in cAlgo closes a position only to reopen the next in the same direction at twice the volume.
It strikes me that this just adds to commission costs.
Can anyone help with how to change the code to add to the current position volume by an amount = to current position volume?
So the stop loss level would only act as a limit order to increase the position size (the actual stop being further away)
Replies
Stokes Bay
21 May 2016, 02:31
Current method. Open 1 lots pay $2 commission, say. Close 1 lot. Open 2 lots pay $4 commission. Total $6
Suggested method. Open 1 lot pay $2 commission. Open another 1 lot, pay $2 commission. Total $4.
@Stokes Bay
GDPR-24_203122
21 May 2016, 12:10
RE:
Stokes Bay Trading said:
Current method. Open 1 lots pay $2 commission, say. Close 1 lot. Open 2 lots pay $4 commission. Total $6
Suggested method. Open 1 lot pay $2 commission. Open another 1 lot, pay $2 commission. Total $4.
Usually the commission is relative to the volume, so making more trades would not matter. I've heard some brokers have a fixed commission, which stays the same regardless of the volume.
When I started studying these robots, I read somewhere that in my case I have a commission on 90/million. So in testing robots, I set the commission to 45, because it also read that's how it should be done. (Can anyone clarify if I'm wrong with this?)
PS: Actually now I think its better to learn to trade manually. And if it works, code it later... Managing takeprofit and stop loss feels too difficult by just coding, because of many factors which influence the high and lows, like support lines, even from weeks ago, round numbers etc.
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Stokes Bay
22 May 2016, 11:40
This will not work for Martingale, as the original 1 lot that was opened will have double the potential drawdown if it is not closed at that point.
why cant you just change the stop level when you open the new trade?
but i agree re martingale, i am just trying to learn how calgo behaves
@Stokes Bay
Stokes Bay
22 May 2016, 11:47
go for any automated system that has an edge,
out of interest, do you have one? not to sell or reveal, but im interested to know how common having a profitable algo is?
you say 50-100% return a year. with x100 leverage thats 0.5%-1% a year return so im interested in the deviation of this return over time? correct me on the leverage used of course, but how do you consider robustness when the size of return is so slim it could simply be market conditions.
im guessing you'd need to have 25+ years of data to have any comfort that such a small return was not market conditions?
would love to hear your views on this,,,,,,,,,as i say, im trying to learn
@Stokes Bay
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