Improvement To The Dyamic Lot Size Strategy 9

Salve a tutti,

first of all a few updates:

  • we almost finished developing PotenzaFX Groups EA. We are taking out bugs and running tests. Maybe we’ll add some improvements coming from the information I’ll detail below.
  • we are done with DuettoFX indicator. It’ll be released next week. Probably on Tuesday.
  • we are already working on Duetto FX EA. It should be ready in a few weeks. Probably at the beginning of March.

I’m sorry for being so “slow” but I’m under a sort of snow storm since more than one week now and weather forecast are not good for the coming days so I have problems working as usual due to the time I have to spend “managing” the situation. I live in Italy and we are not supposed (and so not that good) to deal with such a load of snow đŸ˜€

Anyway… what’s most important is that I have time to think about how to improve performances even more.

The Dynamic Lot Sizing (DLS) strategy works quite well. But sometimes it has problems in “locking” profits. So here’s what I’m working on.

As you know the DLS is made up of two sides: scale-in (opening/adding positions) and scale-out (closing positions entirely/partially ). We’ve seen that the opening is usually good if not very good, and therefore the “pyramiding”. We reach very good levels of profits.

The problems come when we have to “bank” those profits. We’ve seen that sometimes the closing procedure is too “slow” and so we loose some of them if not all.

We also know that actually the opening/adjusting/closing of the positions is made at the beginning of each new bar and/or at specific time intervals.

We’ll keep that for the opening and pyramining but we are testing the partial/total close (scale-out) of positions in real time. In this way as soon as the indicators detect a change of trend (or a retracement) they start banking some money.

We won’t do that for the opening as otherwise we risk to have several open/close signals in a row that would slowly erase our profits.

So the new candidate DLS algorithm….

  • opens/adds position as usual (at the beginning of each bar and/or at specific periods)
  • closes positions entirely/partially in real time (bar 0), as soon as the indicators indicate a lowering of the lot size

We are testing that. If, as expected, it helps improving performances, we’ll update all the EAs with it.

If you have any suggestion or comment they are welcome as usual.


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9 thoughts on “Improvement To The Dyamic Lot Size Strategy

  • Ross

    Have been running Potenza FX DLS over 19 pairs live account and I have found that it requires to lock in profit exactly as you have stated. You are on the ball love your work.

  • Todd

    Hi Andrea
    I have been watching the news and you guys are getting our winter and we are getting yours.
    Very mild winter for Michigan, nice.
    Back to your update ideas. I do see room for improvement locking in profits.
    I can’t help but to think that a easy and simple fix would be on your scale factor to trigger buy and sell. My average lots of total trades on all pairs runs say between 1.8 and 2.3. What if you could set a trailing stop based on this. Say start trailing at 2.8 total lot size or what ever you want. And also how far fall before close all trades of all pairs and what ever a trader desires for time of market check such as real time an hour or what ever. I think also the reverse stratigy for buy back in with a trailing lot lows would allow great buy back price for all pairs. Buy looking at it not just one pair but a basket of total trades to buy and sell would be of great advantage. This stratigy would allow the kind of control of EA that would be friendly to a trader buy keeping it simple, true to your stratigy and allowing the trader to trade his personal way. And it would be nice to show on screen total lots highs and lows and of time of trade so one could tweek as desired.( beter yet smart exit and buy on risk to reward stratigy based on last number of days calculating highs and lows of lots, might get to complicated)
    Thanks for giving me a chance to be heard. Keep up the great work.
    Pip On

    • Andrea Post author

      Hi Todd,
      thanks for your suggestion.
      I’ll take that into account for future improvements. For now we are already testing the version with the strategy described above. And it seems to work as we expected. A few days (maybe a week or two) of tests and we’ll release it.
      Thanks again.

  • Todd

    Above when I mentioned toal lots size I am revering to all pairs combined. I was not very clear on that. I am not the best at explaining my toughts that good.
    Pip On

  • Tim

    Hi Andrea and Paolo,

    I was just wondering if there is a centralised forum available where we can discuss our settings and results using the PotenzaFX DLS Trader EA? I think to would certainly be beneficical if everyone has the ability to share strategies and settings.


    • Andrea Post author

      No yet Tim.
      But it’s in the ToDo list :)
      We already tested a few solutions but still have to work to integrate them into the website.
      Should be difficult but it takes some time so I can’t tell you exactly when we’ll set it up.
      But thanks for reminding us about it :)