rob, martingale is about DD control and low profit for long term. I aim for only 1% profit a day which keep my drawdown low.
you think you gonna teach me what is a martingale....10 years experience bro.you can't buy that
How do you control DD with martingale?
I am really curious to know. The last time I did that, I blew 50% of my account in a week.
People who DON'T use martingale, typically aren't able to control their DD, so why should you expect martingale to be any different? The only way to use martingale effectively is to have a 'trading system' which doesn't have a high consecutive loss count. If you know that your system won't have more than, say for an example, 5 losses before your TP is hit, you simply scale your martingale money management into the trade.
So say the max you are willing to lose on those 4 trades is 10% of your account. You can simply divide the 10% loss in the following manner.
Loss 1 .1%
Loss 2 .4%
Loss 3 2.5%
Loss 4 7 %
What you can see is that after every loss you are more than doubling your lot size, which means that should any of the orders from order 2 to 4 be winner, not only will it cover the last few losses, but you will always have net profit! So all in all, this all boils down on the trader's ability to stick to his system 100% of the times, and to follow the money management used above.
@GJscalper for more information