request of money management for a Grid strategy
- This topic has 32 replies, 7 voices, and was last updated 6 years ago by
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Ohh yes I forgot. Remove all lines from 79 in the code with //, only keep “set stop loss 100”
also if you are okay with pasfinders risk and rr then you should have no problem with this code, the risk and rr are more or less the same for the two systems
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Hello Winnie,
If you understand that this strategy very it is very dangerous, and not so profitable if you consider the ROI, you must also consider that if you are in drawdown and trading sistem would stopped for an error, you loose money, and It’s frequently.
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Hi Winnie. I think ALE just summed it up- please be careful with this code. Also the Pathfinder- I wrote about it in the pathfinder post- the Risk Reward and Risk of every trade is similar to this code. Very poor RR and very high Risk- but it has very high Gain- like this code. But because of pathfinders advanced code it’s difficult to know exactly how much your are risking- but it is as high as 30% for one trade I remember. But due to the high Gain and popularity of pathfinder no one cares about the backsides of it- I am not here to judge because it is an impressive work Reiner has done and as a community has raise a magnificent joint venture- We just need to know the RR and Risk before we decide to put our money in any trade- manually or automatic. The best traders I heard of only focus on the RR and Risk management- they never look at gain.
Hi Erik.
I think it would be individual, but for a statistically advance you RR should be >1 I am still to find my own personal edge so It’s very hard to say about these things- but lets say you want to bet the lotto. You pay 100 euro- would you be satisfied only to gain 50 euro every time you bet? it a game of probability- where it more or less a 50-50% chance. At least that is what I heard 🙂 Also when you attend various webinars you should only bet 1-1,5% of your equity. now how do we do this. it the stoploss that defines your risk. SL*countofpositions. rewritten it would yield =countofpositions=equity*risk%/stoploss=>(10000euro*0.01)/10=10 position. so you can bet 10 position, with a 10 point Stoploss- risking 1% of 10000euro.
And sorry ALE for the misspath of the intended post- I hope it’s okay 🙂
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Kasper… you are welcome in my topic, no problem!!!
Ciao 🙂
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