: Forum Mother of Dragons trading strategy…

05/02/2020 at 10:41 AM #129358

nonetheless

One way of doing that would be with some sort of averaging down code, a variation on this for example:

// averaging down
defparam cumulateorders = true

// averaging down
if longonmarket and open<close and open[1]>close[1] and close<tradeprice then
BUY 1 SHARE AT MARKET
endif

// monitor the average price of whole orders and close them accordingly
if longonmarket and close>positionprice and countofposition>-1 then
SELL AT MARKET
endif

if shortonmarket and open>close and open[1]<close[1] and close>tradeprice then
SELLSHORT 1 SHARE AT MARKET
endif

// monitor the average price of whole orders and close them accordingly
if shortonmarket and close<positionprice and countofposition<-1 then
EXITSHORT AT MARKET
endif

// averaging down

defparam cumulateorders = true

// averaging down

if longonmarket and open<close and open[1]>close[1] and close<tradeprice then

BUY 1 SHARE AT MARKET

endif

// monitor the average price of whole orders and close them accordingly

if longonmarket and close>positionprice and countofposition>-1 then

SELL AT MARKET

endif

if shortonmarket and open>close and open[1]<close[1] and close>tradeprice then

SELLSHORT 1 SHARE AT MARKET

endif

// monitor the average price of whole orders and close them accordingly

if shortonmarket and close<positionprice and countofposition<-1 then

EXITSHORT AT MARKET

endif

You’d have to play around with the specific conditions for when you add to your position. I have tried it but couldn’t get any real improvement … and of course it greatly adds to your level of risk.

In the ‘rules’ of things not to do in trading, one that often appears is “Never add to a losing position”. I guess it stuck in my mind as I really don’t like averaging down. But try it, maybe it would work?

nonetheless

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