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Use of martingale strategy

oshaban (oshaban)
Oct 31 2012 at 20:20
189 posts
Hi ...

I use my own idea to keep the martingale works more till close all the cycle on profit.

The EA can control the number of max lots ... Take Profit for the first round is bigger than the rest of next orders ... while all the time Take Profit is bigger than the Stop Loss. EA use (most of the time) a breakout idea on H1 candle @ 01:00 am ... actually can be changed from EA settings ... The test run for only 3 weeks on 2009 because I have no VPS server those days, but I will put it tonight or tomorrow on mine. The profit was about 27.52 % for the 3 weeks, i.e, about 36.7 % per month !.

I believe that the idea of using different TP and SL will make the EA will go for longer time by making the probability to hit the TP is bigger and making the number of orders of the complete cycle is less !.

Once, I put the EA again on myfxbook.com, I will post the link hee :)

Yo may analyse the attached statement and give me your comments.

Thanks

Attachments:


... oshaban ... skype: oshaban27 ...
James_Bond
Nov 01 2012 at 14:00
556 posts
I have yet to see a martingale which doesn't fail eventually.

SIM
pip2cash
Nov 01 2012 at 14:20
423 posts
James_Bond posted:
I have yet to see a martingale which doesn't fail eventually.


Hi Mate 😄,

eventually means for how long?

With Thanks,
SIM

Trader Owen (cfxsignals)
Nov 06 2012 at 22:08
18 posts
Martingale is less efficient than a single trade policy in the long term. It only serves to smoothen out the balance at the expense of the equity curve.

The only way to get smarter is by playing a smarter opponent
javicolonbo
Nov 08 2012 at 17:47
3 posts
Martingales are simple statistical illusions. People who use these kind of strategies can´t call themselves ¨traders¨. No professional investor will put a single dollar in such strategies.

Ironman
Nov 12 2012 at 13:50
70 posts
Unless your win-% is higher than 50% on a 1:1 ratio, you shouldn't even concider this.

Roulette has a win-% of 47,6% and it doesn't work there.

Vader FX (incometrader)
Nov 13 2012 at 01:50
157 posts
I dunno... I think a martingale factor built into your existing strategy could be a good idea as long as your account size is large enough and your starting lot sized accordingly.

A completely 'blind' martingale strategy would spell disaster I think, but if you have a strategy that gives you an edge as in over 50% win rate its definitely viable.

What matters most (in my opinion) with a martingale strategy is how many loosing trades you can have before you have to except a loss.


Akani (akani)
Jan 11 2013 at 14:13
2 posts
The core function of a martingale system is to recover losses and simultaneoulsy bank normal profits. Whether it wipes out accounts in a day or continues to work in the long run all depends on the risk apetite of the trader.

JohnMandrake
Jan 16 2013 at 07:06
6 posts
If you are using a solid strategy, martingales can enhance your system quite a bit. Otherwise, if they are trading without concept, they are a ticking time bomb.

I´ve coded strategies which also use martingale. They withstood the financial crashs over the past decade on backtests with several brokers, as well as with tick data.
They had a visible drawdown during the 2008 meltdown, but they survived. I have a win-ratio of 80% with it though, so it is not the typical randomly trading martingale.

Dirk (Quick100)
Jan 25 2013 at 13:41
247 posts
yep, I trade an clients account achieving monthly gain of 5-10% since May last year...

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