Smart Money + ABC (Bug 🐛🐜🪲) Threshold Risk:Reward ❌ Not Working

Community / Features & BugsCategory: BugsSmart Money + ABC (Bug 🐛🐜🪲) Threshold Risk:Reward ❌ Not Working
Blake asked 6 months ago

Hey David,

My understanding is that this variable is supposed to avoid trades which don’t yield the input ratio when using Custom take profit for fib values. If memory serves, I can’t think of a time, at least recently, that checking or unchecking ‘Threshold Risk:Reward’ has impacted my backtesting results at all, and that’s including with or without ‘Activate Max %’ being enabled. I’ve opened trades recently that have closed immediately because they crossed the retrace threshold on the same candle as the trade was triggered. Attaching a couple of screenshots for you to see. Please take a look when you update the next boilerplate.

  • All trades were on BTCUSD on EIGHTCAP chart
  • All trades were using PYRAMIDING
  • Threshold Risk:Reward was set to 1 (default)
  • All trades ➡️ multiple take profits (25/50;25/50;100/100)

Screenshot #1

  • Short position with RR of 0.70%

Screenshot #2

  • Short position opened and closed on same candle

Screenshot #3

  • Short position with RR of 0.08%
  • Good pyramiding example showing that with each additional trade, all prior trades are bound to the most recent retracement line
  • In most cases with ABC strategy, pyramiding trades occur as price goes against you, which is typical and not the issue ➡️ the issue is that your previous trades face diminishing values because of the new retracement line, AKA 👉MSB to the upside with a short position already in progress, new trade opens and new profit target is higher than the previous trade, and both trades are "expected" to only retrace to the newly opened trade’s target
  • Any possible solution to allow prior trades to abide by their original retracement values?

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