Quote:
Originally Posted by ernie02
The effort by Autofx (and others) to create a viable EA that can trade according to Williama's principles is admirable, but has anyone noticed the many times Williama interferes with his own rules to enable him to make the profits he does?
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My opinion now is that there is indeed a very fixed and straightforward set of rules for this strategy, with little or no need for human judgment.
The difficulty is in clearly explaining what these rules are.
Every time a
pending order is hit and becomes an open trade, we must open new orders on the other side that will ensure profit if market action turns around in that direction.
We want to open only as many orders as needed, no more. And we want to distribute them over the levels of the grid. We don't want to concentrate the orders on one level of the grid, because then the market only has to tap one level to
trigger more orders on the other side than we want, and sideways action will snowball our number of orders and our committed margin when those orders become open trades. We want the market to have to move to a new level to make us open new orders, and then when we do open them, we want to open only as many as we need so we don't ultimately commit more margin than necessary to get our profit goal.
Once we work out the math and logic needed implement this to the letter (I think I did so in version 01d), we have what we need. Human intervention should be unnecessary. The only time I'd think of intervening is if margin gets lower than I want. Then I might consider closing a grid. But such situations should be rare if I have selected a reasonable base
lot size. The demo that has gone from $100k to over $1M (FxPro Demo Account w/ Login : 109726, Investor : Trapped1) is, as far as I can tell, sticking to a simple set of rules.
09-07-2008, 04:21 AM
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