Not sure why they do not wish to do it or not try any new ideas but at least today I can see that there's more talk about hedging also on the opposite martingale threads. I have also several times asked them to let adding transactions into the winning side because this would behave as hedging and would be easy to implement. Above I have posted the paychecks sample: As an example if we've market transactions 0.1, 0.2, 0.3, 0.4 and 0.5 and the Dollar 1.5,
Let us presume that in the same time we would have been opening buy transactions as follows: 0.1, 0.1, 0.1, 0.1, and 0.1 with a 20 pips space from every other beginning 20 pips in addition to the first sell trade, let us also presume that we've the same for the market trades and the Dollar of 1.5 lots have been opened 20 pips from the previous sell. So at that point we have a reduction from the market trades $120 $200 $240 $160 $100=-$820 and a profit of $100 $80 $60 $40 $20= $300 from the 0.1 buy transactions.
Now let us see what happens with all these 3 options, 1. The price continues to move up 200 pips 2. The price moves back 120 pips 3. The price moves down 200 pips.
1. We start a similar grid since the first one and in 120 pips we've yet another $820 reduction from market transactions and another hedge of 1.5 lots, along with that we would have started third grid and there we would have market transactions 0.1, 0.2, 0.3 and 0.4 open. Loss from them -$100 160 180 80=$520, profit from buy trades with a entire movement of 300 pips =
$300 280 260 240 220 200 180 160 140 120 100 80 60 40 20=$2400 and total declines $2160. Here we would have obtained the profit and shut all transactions with Equity TP.
2. We would shut the buy trades in BE and maintain reduction of $820 and waiting for a break out of the 100 pips range.
3. We would have started to start martingale buy trades and 0.1 lot market transactions into the management. Our loss would be probably around $1300 and in the event the price would proceed another 100 pips, we would shut in profit.
I'm not asserting that this type of system is ideal and it may have some disadvantages but at least in contrast to a normal martingale program, our dd would have been very modest whereas with all the martingale we would have probably lost all of our funds. Also, please notice that that my numbers above might not be totally accurate but using hedging and momentum together can be very productive.
One could also assert that why not open smaller lots rather than allowing the ea open more transactions into the management. This is a great argument if you move strictly based on opening the transactions on fixed levels but if you use price action or a indior to start transactions then it'd be better to use momentum because the number of winning trades should be increasing compared to the trades.