Life is like riding a bicycle. It is impossible to maintain your BALANCE while standing still.
FIND YOUR DIAD STRATEGY STOP LOSS SIZES
When you have loaded your Double in a Day EA onto a trading chart and added a strategy the EA brings up a lot of information on the left of your screen. This information can be turned off but contains some really good feedback to you.
Today we are going to look at the “Safety Margin” or “stops loss (SL)” per trading level feedback.
When trading the Double in a Day system you need to give your initial and top up entries the maximum amount of room to move. In order to do this you need to get the stops as big as they will go. They are as big as they will go and have the best risk when the top up levels have more or less the same size stops – they are “balanced”.
The size of the stops are shown in the EA Info section as shown below. It is important that these stops are more or less balanced. The stops in the example below show stops of 13.0 pips, 16.3 pips, 14.3 pips and 14.5 pips for the 4 levels of entry. These are reasonably balanced.
What would not be balanced would be 20.0 pips, 9.1 pips, 11.7 pips and 8.2 pips. The chances of being stopped out at the second and fourth levels are just too big.
SO HOW DO YOU BALANCE YOUR STOPS ?
Firstly, your stops should not be out of balance if you created your strategy in the excel model in the first place. The process is
- create your strategy in the excel model,
- transfer your setting to the EA,
- save the setting in the EA
- and recall the settings when needed.
Watch this video for more information
Using Excel to generate Forex strategies for the Double in a Day EA
DOWNLOAD THE EXCEL MODEL HERE:- DIAD EXCEL (This model is only available to DIAD EA owners who will know the password to use.)
So you go to your excel model and by experimentation you find settings that will give you balanced stops. The number does not matter in the example below, it is the balance that matters.
Why do we say by experimentation? Well there are so many variables that it is very difficult to give instructions that will guarantee balanced stops. The variables are shown in the dark blue input fields. Watch the video above for more info.
Questions
Please use the comments facility below for questions and comments.
I have and it is not only me having issues so cant be that straight forward!!
You really have to watch all the videos and read the manual (again). There is no way around this and everything will fall in place finally. Getting the settings right and balanced is not diffucult.
Setting the EA has always been my biggest challenge, so stopped using it for this reason. Will give it another go
Anyone else having serious problems with error message setting up, stops and spreads etc?
The most timely reminder and information. Thank you.
Thanks