"
MGH System (Martingale Grid & Hedging)

MGH System (Martingale Grid & Hedging)

by Dr.Hamdi Boukamcha
No large introduction, no tales about my buying and selling or private life, no lengthy posts about subjective theories or methods.

I simply wish to present you a simple system through which I am working and I hope that with everybody’s assist, we are able to enhance it.

Everyone knows that grids and martingales are harmful, however please abstain from making feedback debating whether or not these methods are good or dangerous and deal with the system.

You all are welcome and be happy to writing your strategies or important.

MGH System (Martingale Grid & Hedging)

Primary instance for entry standards.

Simply use a indicator that draw a 10 pips grid.

Purchase: When value comes from above and contact a grid stage (stage 1)

TP: Subsequent stage (10 pips)

If the value drops 10 pips, add a purchase (stage 2) … set all TPs at stage 1

If the value drops 10 pips extra, add a purchase (stage 3) … set all TPs at stage 1

Promote: When value comes from beneath and contact a grid stage (stage 1)

TP: Subsequent stage (10 pips).

If the value rises 10 pips, add a purchase (stage 2) … set all TPs at stage 1

If the value rises 10 pips extra, add a purchase (stage 3) … set all TPs at stage 1

http://oi58.tinypic.com/25jz1h1.jpg

That is one other instance of “Primary entries” when our martingale and hedging will not be needed to make use of but, solely grids.

I feel this time shall be fairly clear, I have no idea the way to simplify it extra MGH System (Martingale Grid & Hedging)

http://oi61.tinypic.com/505p5g.jpg

That is essentially the most straightforward state of affairs.

Let see one other straightforward state of affairs, let’s name it “Hedge x2

Now we’ve got our grid of sells on Stage 4 so with out shut the sells ….

1. We’ll open solely buys doubling the final lote.

2. If the value go in opposition to, we add as much as 2 grid ranges extra with the identical lote dimension.

3. We’ll shut all buys and sells once we attain 100 pips or extra.

http://oi62.tinypic.com/9t0gn9.jpg

Till now these are very straightforward conditions.

Later we effectively see some extra complicate.

Upfront I’ll say that this technique have a p.c fairness SL and a special fairness TP goal, relying on the hedge multiplier. The most important the hedge multipler, the largest the acquire.

Let see now “Hedge x4

1. Worth attain the extent 4 so we begin with x2 buys and get some revenue, however …..

2. The worth has retraced to our x1 grid sells, so the TP for x1 trades is reached and now we’ve got 3 x 2 trades within the air

3. To keep away from a attainable vary, we are going to await the value strikes yet one more stage.

4. Then we are going to begin with x4 sells till get our goal. In case of a “Hedge x4” we’d like 250 pips or extra to shut all of the trades.

http://oi58.tinypic.com/w7y7nt.jpg

I’ll present you now when the separation between opened grids is 30 pips or extra. We’ll name to this instance “Hedge x4 Inside Grid“.

1. We’ve 2 reverse grids opened (3 x1 buys and 3 x2 sells). At this level some x2 sells have been closed already ( 5 sells x 2 = 100 pips )

2. The separation between the grid stage 3 of opened buys and lgrid evel 3 of opened sells is 30 pips.

3. The worth again as much as the center of the grids separation. On this case the center could be 15 pips, so we contemplate the extent closest to buys to start out with x4 trades.

4. Sooner or later the value attain or x1 buys TP and are closed.( 3 buys x 1 = 30 pips )

5. We nonetheless open x4 buys till get our 250 pips or extra goal.

http://oi61.tinypic.com/2edxmok.jpg

Right here is the “Hedge x16 Inside Grid” instance. I feel the image converse by itself.

1000 pips or extra goal for this instance, by the way in which.

http://oi58.tinypic.com/2zqssn9.jpg

When we’ve got an inside grid opened, we are going to await the surface grid to shut, on this case the x8 buys, to open a brand new x32 grid.

That is the “Hedge x32 inside grid” …. 5.000+ pips DD.

Possibly it might be a good suggestion to start out with the subsequent stage 10 pips away fom inside grid get TP, and never await a facet stage to get TP.

http://oi58.tinypic.com/2mg5y0y.jpg

This can be a modification of the system by Paracelsus (FxMasterGuru) …

http://www.forexfactory.com/showthre…99#submit7662999

Some “brainstorming” concepts for additional experimentations:

1. First batch entry is in “pattern course”:

Purchase: When value comes from BELOW and contact a grid stage (stage 1)
Promote: When value comes from ABOVE and contact a grid stage (stage 1)

Reasoning: To maintain “friendship with the pattern” ranging from Level1 of Authentic Batch. (All additional “H” Stage entries are in “pattern course”, so why not first one, too?)

2. Not shifting authentic TP ranges when Level2 and Level3 trades are activated.

TP: Subsequent stage (10 pips)
If the value drops 10 pips, add a purchase (stage 2) … preserve TP
If the value drops 10 pips extra, add a purchase (stage 3) … preserve TP

Reasoning: Simply by protecting the unique TP, we are able to DOUBLE the revenue of every Authentic Batch (after Level3 entry).

For instance:
Transferring TP to Level1: Level1+Level2+Level3 PT = 0 + 10 + 20 = +30 pips
Protecting authentic TP: Level1+Level2+Level3 PT = 10 + 20 + 30= +60 pips

http://www.forexfactory.com/showthre…50#submit7699050

Additionally, yet one more thought: Taking earnings and reentering with the identical lot dimension at every grid-step burns up a lot of spreads and commissions, which add up. To keep away from “feeding the beasts” (i.e. the brokers) excessively repeated reentries, I counsel NOT TO CLOSE the very first trades of every smaller batches, however letting them experience and including the 2nd and third steps after a 10 pips (grid dimension) retracement as traditional.

It provides the identical precise fairness acquire/loss at every stage as the unique technique however with out closing and opening trades at every stage. Contemplating a 1.2 pips ECN expense at every grid step, it could possibly imply 12 pips saving on a 100 pip transfer, which is about 12% price saving. Not insignificant. Additionally, as “butterfly impact” occurs additionally in buying and selling, this small, however important price saving can imply the distinction between having the ability shut a “basket” earlier than a serious market flip and earlier than the next Hedge stage would kick in.

Connected the EA’s by GoldenEA

Connected File
MGH System (Martingale Grid & Hedging)  mghEAv1.0.mq4   12 KB | 4,979 downloads | Uploaded Aug 30, 2014 5:06pm
Connected File
MGH System (Martingale Grid & Hedging)  MGHEAv2.0.mq4   16 KB | 7,366 downloads | Uploaded Aug 30, 2014 5:07pm
Connected File
MGH System (Martingale Grid & Hedging)  OrderSendReliable.mq4   28 KB | 5,102 downloads | Uploaded Aug 30, 2014 5:39pm

Share this article

Leave a comment