Hi everyone,
This is StudentOfTheArts here, my first post on this forum.
I'm sitting on this idea and I'd like some reply on the idea for my new built trading system.
It's an idea for automated 24/7 trading in a full hedged system on a 5 digit account. should work for 4 digits as well.
specifications will be as followed:
Currency Pairs: Should work for all
Time frame: chose one
Chart type: chose one
Trading hours: all open market hours
Stoploss:none (this is where it gets tricky in the idea)
Broker: Hedge enabled (when margin long = margin short => 0 margin required)
Ok, lets get to it.
Basic idea is:
every 50 pips check position according to where it was 50 pips before.
If Bid old >Bidnew => short position(micro lot)
If Bid old < Bidnew => long position (micro lot)
set fixed take profit 150 pips
see every 50 pip movement as going a level up or down, like a ladder
so when the market goes up and down within 2 borders , we will close positions and create profit.
please set your max up level and max down level,
I chose say 20 levels between up and down .
Upper Hedge
And Lower hedge
When the level on the ladder reaches this point lotsize for new positions opened in the outer direction will be : totallotsize other direction/2.5( every 150 =3 levels and we want to make some profit so i like the 2.5 factor)
*Note that in a fully hedged system a margin call will not occur
the outer hedges are there to prevent loss due to outbreak or a crash.
profit will be made as the market will go up and down within these bonds.
when market goes out of bonds, profit will also be made.
simular types holds an inner hedge and outer hedge, where the hedges move with the market.
the tricky part is, you will always be with open positions, hedged positions will turn into profit at some point in a fully automated 24/7 trading envirement.
**Note: as a rebate trader you will receive rebates on every trade you made. Even though there is a chance the closing of all your trades result in no profit at all or no loss at all, you will still receive rebates on the trades you made. (do not know rebate trading? contact me)
Please give your opinion what you think of this "universal trading idea",
thank you,
Always looking for answers.
Kind regards,
StudentOfTheArts
P.S. Please forgive my poor english.