Money Management Method

noreply@blogger.com (Mt.) — Sat, 03 Oct 2009 09:52:00 +0000

Method

Open Buy and Sell positions anytime
Set profit take target and cut loss level
if Profit to Loss ratio is set higher, then evertime you win, you win more. everytime you loss you loss less.

Parameters

Profit take target
Cut Loss Level

Results

Result for Take Profit at $60, Cut Loss at $30. Profit to Lost ratio set at 2:1

A more Balance approach, Both Profit and Loss ratio set at 1:1 ( result )

It may look the same but actually an important difference. Profit:Lost ratio @ 2:1 lose out faster than 1:1

Reason

Profit Lost ratio works together with WIN:LOSE ratio. Setting Profit Lost ratio at 2:1 does not mean WIN:LOSE stays at 50%. As a matter of fact when you set Profit Target to twice the amount of Lost level, it becomes so much harder to achieve. As a result your WIN:LOSE ratio become much lower than 1:2, in other words you will lose out your capital FASTER!

Codes

for(i=oti ; i>=0 ; i--){

if(OrderSelect(i,SELECT_BY_POS,MODE_TRADES)==false) break;

if(OrderMagicNumber()!=MAGICMA || OrderSymbol()!=Symbol()) continue;

p = OrderProfit();

if((p < -cutLossMargin) || (p > minMargin)){

mtClose();

Print("===============>", p);

}

if(OrderType()==OP_BUY) buyOrders++ ;

if(OrderType()==OP_SELL) sellOrders++;

}

if(buyOrders==0) mtOpenBuy();

if(sellOrders==0) mtOpenSell();

regression weighted count on trend

noreply@blogger.com (Mt.) — Sat, 03 Oct 2009 05:17:00 +0000

Method

1. look back previous X number of price movements
2. if the latest price shows an upward move, add +1 and weighted it ( X - 1 )
3. like wise if the 2nd price goes downward, add -1 and weighted it ( X - 2 )
4. At the end, if you have a positive sum, generally it is an up trend
5. If the sum is negative, it is a down trend

Parameters

1. Number of previous data to analyse

2. Percentage of occurance to determine it is considered a trend

Result - full result link

Reason

You are taking previous data to decide the trend. By the time you have enough data to prove the trend, the trend may already be ended. The only time this will work is a very pro-long trend like this.

Most of the other time, it may become like this :

Hence there will never be a single set of parameters that can cater for all situations.

Codes

extern int TRACEBACK = 100 ; // trace back to 100 points

extern double TRENDCUTOFF = 0.6 ; // if occur more than 60% of the time

for(i=0 ; i <>

o=Open[i];

oprev=Open[i+1];

// weigthed up or down count, open to open, close to close

if(o > oprev) {

regoCount = regoCount + (TRACEBACK-i);

}else if(o <>

regoCount = regoCount - (TRACEBACK-i);

}

int tb = TRACEBACK ;

double tbsum = (tb / 2 - 1) * tb + tb + tb/2 ;

regoCount = regoCount / tbsum ; // make it into a percentage

if(upCount > (TRACEBACK * TRENDCUTOFF)) upCountTrend = true;

if(downCount > (TRACEBACK * TRENDCUTOFF)) downCountTrend = true;

if((upTrend==false) && (downTrend==false)) sideCountTrend = true;

Absolute Technical Analysis Truth

Money Management Method

regression weighted count on trend