The grid tightens as the trail of sells is laid....the behaviour of the grid boundries is fascinating to me. The price goes up and down and they seem to tighten and widen with the gyrations...they sort follow the price and bank some profit during the trip. When you look at a monthly chart you might deceive yourself as you do not see the 30 days it took to form the bars and you have no idea where the grid boundries are at that time. This may not be as easy as plugging in some numbers on a spreadsheet and calculate what 15 pip increments use up. I think the idea is to estimate a worse case scenario based on a 20 year range. I think 33% per year is a great return for directionless, mindless trading don't you? Start Capital: $2,000.00 # of Calendar Days Traded: 13 (Start = 12/29/11) Profit: $61.04 3.05% Float: -$193.82 -9.69% NAV: $132.78 -6.64%
Well EliteTraders...I hope you are enjoying this thread and I hope the questions posted get you to think. Thank you to those of you brave enough to post in this thread...really I do not bite!!! It's just that I want to write clearly and discuss grid trading completely. I hope this thread grows with the readership and the contributors needed for an in depth study/debate...etc. Traders need to run this forward test and I suspect it will take some time to get some quality posts in here from some of our analytical guests. Be patient...visit this thread often to check in to how the Super Money Grid is performing. Remember I did not write this EA and this thread is merely a study of one of the public domain EA's out there. ES
Another point I want to make. APR is calculated from amount invested. There is no rule that says that you must start a grid with enough capital to endure a 20 year range from the beginning. When the grid builds and resets naturally you can deposit and withdraw monies to goose your net yield figures. Point being...why tie up money antipating a worse case scenario form the get-go? This type of trading affords you the time to manage prudently. ES
Well...Well...it only took 14 calendar days (I posted it would take up to 30)....we got the equivolent of a grid reset. so...4k intitial start capital would make this system even more safe and still would allow a 33% apr. Start Capital: $2,000.00 # of Calendar Days Traded: 14 (Start = 12/29/11) Profit: $63.09 3.15% Float: -$62.14 -3.11% Margin used $20.36 NAV: $0.95 0.05%
for your doublemint pleasure: (notice that both lines are above 2K!!!) Bold Orange Red line = Balance, Steel Blue line = Equity:
I will continue testing in Demo and posting in this thread. But I have come up with a tentitive plan for this long-term trading ATM machine for the readers to consider. I am unable to trade this system because I reside in (RLS) the Republic of the Liberal Socialists. (These people ruined the USA- Reed, Pelozi, Bernacke and the guy with the lisp) This is what you do when you feel confident enough to go live: If you reside outside of the USA you open up an account with one of those 500:1 dealers (preferably one that considers hedging as one trade). Make sure the dealer has quick no fee debit card deposits and that here is not any server limits on the number of open trades. start with 1K initial start capital. Tolerate no more than a 15% DD...when you breach it...add more dollars to bring it down to 5% or 10%. Withdraw down to 1K at a grid reset. When you get your initial net of 1K back in withdrawals exceeding deposits, double the initial to 2K and use 0.02 lotsize and pray that the dealer does not go under...or that the Euro does not get replaced. Assuming all goes well...nobody really knows...continue the doubling and at some point take 50% off the table and spend it! It's only when you spend it you can say that you got a benefit in this lifetime. Try this out on Cable with the settings I posted in this thread somewhere. Consider ET your favorite place to come and read, share and chat about your good fortune. Vote for Ron Paul. Good Trading to you. ElectricYouMustBePatientToTradeSuperMoneyGridSavant