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Martingale/averaging expert advisors

JayTeeFX
Aug 31 2016 at 06:51
18 posts
A great trader I know built a system like this past few months ... pulled 300% in August with very little drawdown ... seems it can be done well if you know what you're doing. You could just run it each month with a set balance, every now and then you'd have a bad month where you're wiped out but most months you'd win big.

vontogr (togr)
Sep 01 2016 at 05:23
4862 posts
Martingale strategy is dangerous. It could work for years and than fail. Check the image out.
I made hundreds of percent and the it was gone.

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Sebast (sebast)
Sep 01 2016 at 08:09
52 posts
Nice topic Kenneth.

There is plenty of working strategies like that. It s just that you need to set a hard stop that won t affect too much your montly income. As well reduce your risk as much as possible, I believe a grid should start at 0.01 as initial lot for a 10k account.
But you can run few similar EAs but on different pair not correlated.

Example: You have a marti/grid EA working and generating 2% profit per month and a hard stop at 5% DD. You run it on 4 pairs not correlated. The result will be 4x2%=8% per month with extreme case scenario 4x5%loss. Of course the chance that all your 4 pairs reach their hard stop the same month are very very very small.

The best things is to reduce your lot size as much as you can and apply your strategies on many different pairs. Most of us are failing with marti/grid strategies because of too big lot size and because of focusing only on one pair. Hard stop MUST be a part of the strategy.

buy low sell high
vontogr (togr)
Sep 01 2016 at 13:49
4862 posts
GiGio78 posted:
togr posted:
Martingale strategy is dangerous. It could work for years and than fail. Check the image out.
I made hundreds of percent and the it was gone.


It depends on what type of Martingale're using.


And what kind of martingales are there?

vontogr (togr)
Sep 01 2016 at 13:49
4862 posts
sebast posted:
Nice topic Kenneth.

There is plenty of working strategies like that. It s just that you need to set a hard stop that won t affect too much your montly income. As well reduce your risk as much as possible, I believe a grid should start at 0.01 as initial lot for a 10k account.
But you can run few similar EAs but on different pair not correlated.

Example: You have a marti/grid EA working and generating 2% profit per month and a hard stop at 5% DD. You run it on 4 pairs not correlated. The result will be 4x2%=8% per month with extreme case scenario 4x5%loss. Of course the chance that all your 4 pairs reach their hard stop the same month are very very very small.

The best things is to reduce your lot size as much as you can and apply your strategies on many different pairs. Most of us are failing with marti/grid strategies because of too big lot size and because of focusing only on one pair. Hard stop MUST be a part of the strategy.


Running martingale with 5% DD makes no sense. Why?
Because with martingale such low DD will be hit often.

CrazyTraderfx (CrazyTrader)
Sep 01 2016 at 13:49
1718 posts
CrazyTrader posted:
Nothing is working for you... it is just temporarily. 1000 of people have tried before you did. Don't you know?

Do you know at least why it is working for you so far? Well with 3 years experience you are supposed to guess the answer. This answer is obviously temporarily, that's why at some points, if you don't stop your strategy before it happens, you will be in trouble.

I'm not a martingale hater as I have developped my own one... a tricky one, 10 times smarter that the one everybody uses, but not so easy to use.

Good luck anyway...


Martingale works only temporarily... I write this word for the third time.
It works well on range market conditions... as soon as you are facing a strong trend... boom!
By the way, where are the 2 accounts you had?

Magixs (Magiic)
Sep 01 2016 at 13:54
435 posts
CrazyTrader posted:
CrazyTrader posted:
Nothing is working for you... it is just temporarily. 1000 of people have tried before you did. Don't you know?

Do you know at least why it is working for you so far? Well with 3 years experience you are supposed to guess the answer. This answer is obviously temporarily, that's why at some points, if you don't stop your strategy before it happens, you will be in trouble.

I'm not a martingale hater as I have developped my own one... a tricky one, 10 times smarter that the one everybody uses, but not so easy to use.

Good luck anyway...


Martingale works only temporarily... I write this word for the third time.
It works well on range market conditions... as soon as you are facing a strong trend... boom!
By the way, where are the 2 accounts you had?


That's true sometimes, but if it's used on a trend strategy then it's the opposite, and some pairs will continue in a broad range so that it won't blow up. It is after all a lot sizing strategy.

I prefer smaller increments than x2/Martingale.

CrazyTraderfx (CrazyTrader)
Sep 01 2016 at 14:04
1718 posts
We all know how to create a winning strategy... It simply to add to the winning trades!
But doing so, you might notice that you will start losing... because not betting on the trendy pair... so account will go down... but at some points... you should be winning by a adding positions without closing profit... because when a trend starts it isn't for 200 pips but on the long term it's 2000 or 20000 pips!

It sounds logical to do the opposite of what doesn't work : )

Sebast (sebast)
Sep 01 2016 at 18:42
52 posts
togr posted:

Running martingale with 5% DD makes no sense. Why?
Because with martingale such low DD will be hit often.


Why it will be hit often?

buy low sell high
Magixs (Magiic)
Sep 02 2016 at 01:45
435 posts
sebast posted:
togr posted:

Running martingale with 5% DD makes no sense. Why?
Because with martingale such low DD will be hit often.


Why it will be hit often?



Aiming for 0.5% monthly growth it wouldn't be. Need context to say whether it would or not.

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