Thanks for all the interesting posts, I am definitely learning a few bits.
The reason I posted in the first place was because I felt that in general the scary comments and the large numbers thrown around would probably put off a few newcomers without need for it. I say this because I am a newcomer to the automated side of trading and was not very lucky with finding quality reviews (maybe looking in the wrong places)
Still a bit disapponted that the vendors are not participating or making their open trades public. I am glad a few users have made their account public, I am tracking a few Tom's EA users. I figure by monitoring several accounts, I can get a feel for performance. I was reading fughe's post on his position sizing and I was a bit surprised (maybe I did not get something)
To make this simple, I am going to use the actual trades placed in the EURUSD. Here are the trades:
#1- 0.4 lot @1.3779
#2- 0.4 lot @1.3718
#3- 0.4 lot @1.3667
#4- 1.30 lot @ 1.3612
#5- 2.50 lot @1.3558
#6- 3.80 lot @1.3495
I am not sure how you come to this numbers, could you explain? they are rather scary! My account (5k account, risk level 2, 3 pairs) during the same period would have done:
#1- 0.01 lot @1.3779
#2- 0.01 lot @1.3718
#3- 0.01 lot @1.3667
#4- 0.02 lot @ 1.3612
#5- 0.04 lot @1.3558
#6- 0.06 lot @1.3495
It would appear that you were running a mini account, not micro. Is that right? The position sizing you are quoting here is 40 times higher than mine
Here is what the stats would be at the stop(to keep it simple we assume 1 pip @ 0.1 lot is $1):
#1- 0.4 lots @ -600pips= -$2400
#2- 0.4 lots @ -539pips= -$2156
#3- 0.4 lots @ -488pips= -$1952
#4- 1.3 lots @ -433pips= -$5692
#5- 2.5 lots @ -379pips= -$9475
#6- 3.8 lots @ -316pips= -$12008
This leaves with a sum total loss of......-$33683.
(...) At this point everyone should be seeing that we are in a margin call situation LONG before we get anywhere near the -600 pip stoploss. This is for ONE pair on MINIMUM risk. This happened in 3 days (Sept 10th and 11th were the weekend). I am not using a theoretical price action here, I used a real life, the-market-actually-did-this-in-the-real-world, event.
With my size lots, the DD I would get would be £527.40, which is around 11% give or take. Perfectly acceptable, expecially given the circumstances, I guess. I put in brackets what DD I would encountered with mine. Perhaps is the version (1.88) or perhaps is something else but the difference seems huge.
#1- 0.4 lots @ -600pips= -$2400 (£60.00)
#2- 0.4 lots @ -539pips= -$2156 (£53.90)
#3- 0.4 lots @ -488pips= -$1952 (£48.80)
#4- 1.3 lots @ -433pips= -$5692 (£86.60)
#5- 2.5 lots @ -379pips= -$9475 (£151.60)
#6- 3.8 lots @ -316pips= -$12008 (£126.40)
This leaves with a sum total loss of......-$33683. (£527.40)
So....in light of this new information, I still stand by my warning to new traders to learn to trade successfully with a manual system first before attempting to use a martingale system. Then, make sure you are using v1.88 or later. To get a clear image of the risk involved, all you need to do is take my previous set of figures and divide everything by 10.
It would appear to me I have to divide by 40 (or with a 10k account, by 20).
Perhaps I am not getting it but I fail to see how an EA like this, which keeps moving the TP closer to current price, is able to hedge, takes profits quickly and trades minuscule sizes can blow your account, provided it is regularly monitored , there is enough capital, runs 24/5 and strict rules are set. Personally, I do not use Martingale strategies in manual trading, but my sizes are bigger there. Could not possibly do that. In automation though it seems reasonable to me.