Reply To: Description of Price Action Engulfing Candles Strategy

Forums Strategies and Expert Advisors Price Action Engulfing Candles EA Description of Price Action Engulfing Candles Strategy Reply To: Description of Price Action Engulfing Candles Strategy

#4566
DominikDominik
Administrator

Hi!

nuganics,medicine: Today it will be published.

Sorry, Luxyfer, but there will be no Hedging anymore in new version of Price Action EA, because it is too risky to use. As I already wrote, it was more of a function implemented just for tests than to trade live. Benefits of using hedging in this strategy are disproportionate to the risk that you take. Sooner or later, hedging would surely blow up your account. Hedging can work only when trend is very strong and price goes in one direction. In our strategy we try to predict the trend with modified engulfing pattern and some other techniques, so if price returns (just after our forecast) it’s better to close opened order on SL (and forget about it) than open another order, because it’s highly probable that we are in the phase of market consolidation (ranging market) where forces of bulls and bears are at similar levels, so there is no point taking risk.

Regards!