Hedging trades in a trend direction

[raa]

Yeah, it is a clearly Martingale trading robot. I am doing some calculations now for my own version of a grid trading methodology, something I have started to think about after doing hedge trading for two weeks. Will give it a try on Monday on demo, but for effectivness I will have to learn some MLQ4 programming perhaps, to automate it. It does not involve Martingale and losses would be limited. I will let you know how it develops.

BTW, I have closed all my trades on Friday evening, even though they were far from completion. But this is how this hedging works - your exposure to market is permanent. Anyway, I took a floating loss, but still my net profit for last two wheek (starting at the beginning of all this craziness with JPY pluging to 89.xx) was around 20% of capital, so I consider it is definately not a failure, even considering some big mistakes I made while learning of of panic, some too short counter-trades orders touched by just 1 pip price and return (which I should close of course but I did not), and no written rules. All in all, if formalized good enough, it is a good thing. The best part is that you always can limit your exposure and fix your floating PL by balancing short and long position until situation clears and you know where price is going...

[capsmart]

I agree with your point. I just find it easier to use something that works instead of trying to re-invent the wheel.
By the way the author of the robot confirmed the 18 trades as being the limit before margin call and told me that they are also selling an advanced version (up sale) of the current robot that will take care of this. How? Well if the market keeps ranging too long it will hit the break even point every time it gets from one entry to the next one. This is when the robot will close all trades and start all over again in order to protect capital. After all I think it is not a bad idea. How long could Eur/Usd stay in a 40 pip range? Once you have a move of more than 40-50 pips the robot will move the stop loss to break even and follow the the trend.
The author also suggests to use his robot as a tool and not as a turn on and forget robot.