Clarifications about % Equity => Lots vs Freeze % of Equity
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Greetings Fxdreema,
First of all I'd like to thank you for your time and efforts on developing a tool for building up MT experts.
I'd like to ask about the difference over % Equity => Lots and Freeze % of Equity. I don't understand how this works. Also I wonder if there is any guide that could help to run this tool.
Thank you so much for your time.
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Yes, I should write guide for money managements, these things also confuses me
"% Equity" is something that I added in the beginning, but it turns out to be stupid and sometimes I think to remove it. If you have EURUSD where 1 lot is 100,000, and you have equity of 10,000 dollars, then 100% of equity (which is 10,000) will be transformed into lot size of 0.1. You know, 0.1 lot is 10k of money. If you have equity of 15k, then the lot size will be 0.15.
The problem with this method is that other markets have different lot size value or they use different currency. If you try this on Gold... I don't know what crazy lot size it will take."Freeze % of Equity" calculates lot size depending on the leverage, so it will freeze certain amount of money. See at the "Free margin" and "Margin". Here is before and after I use 10% of equity.
http://prntscr.com/2lat4o
http://prntscr.com/2lat9r
"Margin" becomes something like 10% of the equity that was before opening that trade.
This MM should work also with markets that has nothing to do with the deposit currency, but I think in this case any backtest will be wrong. -
Dear fxDreema
You said in your reply to FHTrading; __...but I think in this case any backtest will be wrong.[/quote:1c9ee5bg]
I'm a little worried to discover this reply as I have been using "Freeze % of Equity" in back tests.Could you explain why you think that backtesting will be wrong when using this MM method?
Many thanks,
James
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Because I don't know how MT4 knows what is the relation between pairs during backtest. It's well known that MT4 can only backtest a single pair at a time. So I guess (I'm not sure at all) that it is using the current live price of the other pair to calculate MODE_TICKVALUE.
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Hi
I did a bit more digging on this.
RaptorUK says (http://forum.mql4.com/16171
__...if your base currency is USD and you are looking at EURUSD the Tick Value is constant, if you are looking at USDJPY then the Tick Value changes tick by tick. [/quote:2yfo2af4]
Also, if you look here, http://articles.mql4.com/401, and scroll down to the "Point Price in Deposit Currency" sub-heading, it says:__It must be reminded that one-point price will change for currency pairs, the second value of which is not deposit currency.[/quote:2yfo2af4]
I guess, therefore, backtesting is OK using "Freeze % of Equity" in back tests using this MM method for currency pairs where one is your own base currency, in my case GBP.Do you think I'm right? If so, perhaps this could somehow be useful in fxDreema.
Thanks again,
James.
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EURUSD + USDJPY = EUR, USD and JPY = 3 currency pairs. We all know that MT4 has problems with ticks when we backtest only EURUSD (for example), so can we expect that it can work 100% correct when we add JPY into the game? I don't know, I never tested if this is correct or not, i don't even know how exactly it is working, by my feeling is that it is... less than 100% correct. But all depends, maybe there is no real need to be correct.
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Yes. I think this must be right.
So, if you are using, say, GBP as your base currency, in other words you live in the UK and use a UK broker, and you trade EURGBP, then this MM method should be accurate in back tests, as there is only one variable, EUR, and the Tick Value is constant because everything else is GBP.
Note that the order seems to be the key; the "GBP" bit comes last. Therefore, creating a strategy and back testing on EURGBP (in my case because of where I am on the planet), and backtesting with this MM, should result in a valid strategy across other pairs.
That's my reading of it! Might be wrong, though!
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Well, all those MM are confusing to me as well, I'm really bad with mathematics. Try it and if it doesn't work as expected tell me to see if there is something wrong with it
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Hi there,
Is it possible to trade based on a % of a previous trade?
Example: I open a trade of 1 lot.
Sometime later, I want to open a trade based on some percentage of that previous trade? Say 25% -> 0.25 lots?
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Hi power7,
Here's how I do it:
https://fxdreema.com/shared/ejBkBwe7c
Maybe you will be able to improve it for us both!
James.
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james, I think you have something wrong in block 2. OrdersTotal() returns the total number of trades and pending orders at the moment, nothing about lots. In the same time
Otherwise yes, "add to volume" can be used. But I will suggest to use some limits in "For each Trade", maybe using value 1 for "Not more than N trades". Then in "add to volume" there is an option "% of current trade volume", which I guess will be better than calculating it before using variables.
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Yes. I see that. This works for me because of other things I'm doing. I guess in that case I'd store every previous trade's lot size (MODE_LOTSIZE) in a variable, and call that in to the calculation which should then work. However, the principle of the method would remain the same. I hope!
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Hi James!
Did you create the addtovol block yourself?
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Hi FxDreema,
For the add to volume block, does % of trade volume refer to a trade this block is connected to?
For example I may have multiple trades running simultaneously, and I only want a % of a single trade, not my total volume on all trades combined which are open at any given time.
Thanks.
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No. The "add to volume" block is standard to fxDreema. It should be in your list. I think you should be able to do what you are looking for with my method, or a variation of it.
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...and to make it work on specific trades, you'll need to combine it with the "Group" facility in fxDreema. This is equally easy.
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Sorry I meant the other block, the calculation of the volume?
How do you group trades if you dont mind me hassling you a little more!
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The calculation is a "formula" block. I renamed it in my example, and confused things. Sorry
To group trades, take a look inside the relevant blocks. Click the "Origin of trades" bar, and place a number in there. Use this same number in the rest of the relevant parts of the EA (you can have multiple groups within an EA), and it will act solely on the trades associated with this number, leaving others to do their own thing.
Neat!
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Hi James,
I appreciate you taking the time to help me out. I hope to return the favour once I have a hang of this software!
I checked everywhere in fxDreema for an 'origins of trade bar'. Is this something that is actually labelled somewhere? (1) Where can I find it! (2)
I know it must be tedious, but if you could explain things to me how you would a child, that would be awesome!
I've realised I need to read a manual or something! Is one available that explains all the settings for the blocks? I know many parts are very intuitive, but as I've only been playing around with this for a few days, I'm finding a slight learning curve is involved.
For example, if I place a 'For each trade' block....does this mean that it will execute whatever is 'underneath' this block for every trade? (3) Or just the ones connected to this block? (4) Or does it have anything to do with this 'group'. (5)
I would like every trade I enter to have two stop loss at two separate predetermined levels. Can I do this by using the 'for each trade block' or is that not what it is meant for? (6)
Do the blocks work like a logic tree? (7)
Other than that, my first impressions have been positive, I will be signing up for the membership in the next few days.
The million dollar question is....have your EA's worked as expected when built on fxDreema? (8)
So many questions!
I ended up numbering them.
