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Martingale/averaging expert advisors

CrazyTraderfx (CrazyTrader)
Sep 06 2016 at 09:55
1718 posts
A grid involves both Long & Short positions... a grid is hedged system.

Martingale is a way to recover the previous loss by increasing lotsize while betting the same direction again and again.

vontogr (togr)
Sep 06 2016 at 09:57
4862 posts
Magiic posted:
togr posted:
Magiic posted:
togr posted:
Correct definition of martingale is that with decreasing equity you increase trade size. So even grid is form of martingale.
More common definition is that martingale is increasing trade size, while grid is adding more positions of the same size.



The first definition is the same for any strategy unless you stop trading once you get 1 wrong?


No martingale is like you trade
1 lot and loose so you open 2 lots and loose so you open 4 lots etc
Grid is like you trade 1 lot and did not reach profit so you add another 1 lot trade and another...



1 of 11 charts running is martingale in the account I've on display.

I understand grid and doubling/martingale.

I was confused with the decreasing equity meaning martingale.

A strategy that is tested, say 1.00 lot for 100,000. When it loses it's first trade and goes to 98,000, when it opens it's next trade at 1.00 lot does that mean it fits your 1st definition of martingale? Decreasing equity equalling larger trade size?





Martingale scheme is adding to position when equity decreases.
Equity decreases when open trades are negative.

So lets say you have account balance and equity $1,000
You open trade which turns negative to -$100

So your equity decreased.

Magixs (Magiic)
Sep 06 2016 at 10:01
435 posts
togr posted:
Magiic posted:
togr posted:
Magiic posted:
togr posted:
Correct definition of martingale is that with decreasing equity you increase trade size. So even grid is form of martingale.
More common definition is that martingale is increasing trade size, while grid is adding more positions of the same size.



The first definition is the same for any strategy unless you stop trading once you get 1 wrong?


No martingale is like you trade
1 lot and loose so you open 2 lots and loose so you open 4 lots etc
Grid is like you trade 1 lot and did not reach profit so you add another 1 lot trade and another...



1 of 11 charts running is martingale in the account I've on display.

I understand grid and doubling/martingale.

I was confused with the decreasing equity meaning martingale.

A strategy that is tested, say 1.00 lot for 100,000. When it loses it's first trade and goes to 98,000, when it opens it's next trade at 1.00 lot does that mean it fits your 1st definition of martingale? Decreasing equity equalling larger trade size?





Martingale scheme is adding to position when equity decreases.
Equity decreases when open trades are negative.

So lets say you have account balance and equity $1,000
You open trade which turns negative to -$100

So your equity decreased.



That is correct. Equity also decreases to the same amount if you close the trade.

Magixs (Magiic)
Sep 06 2016 at 10:04
435 posts
Are you saying that unless you scale down position size to be an exact % of the balance at whatever the balance is, anything other than that is a grid and or martingale?

vontogr (togr)
Sep 06 2016 at 10:11
4862 posts
Magiic posted:
togr posted:
Magiic posted:
togr posted:
Magiic posted:
togr posted:
Correct definition of martingale is that with decreasing equity you increase trade size. So even grid is form of martingale.
More common definition is that martingale is increasing trade size, while grid is adding more positions of the same size.



The first definition is the same for any strategy unless you stop trading once you get 1 wrong?


No martingale is like you trade
1 lot and loose so you open 2 lots and loose so you open 4 lots etc
Grid is like you trade 1 lot and did not reach profit so you add another 1 lot trade and another...



1 of 11 charts running is martingale in the account I've on display.

I understand grid and doubling/martingale.

I was confused with the decreasing equity meaning martingale.

A strategy that is tested, say 1.00 lot for 100,000. When it loses it's first trade and goes to 98,000, when it opens it's next trade at 1.00 lot does that mean it fits your 1st definition of martingale? Decreasing equity equalling larger trade size?





Martingale scheme is adding to position when equity decreases.
Equity decreases when open trades are negative.

So lets say you have account balance and equity $1,000
You open trade which turns negative to -$100

So your equity decreased.



That is correct. Equity also decreases to the same amount if you close the trade.


Sure.
Standard martingale open new bigger position after smaller loosing positions is closed.

vontogr (togr)
Sep 07 2016 at 06:03
4862 posts
Magiic posted:
Are you saying that unless you scale down position size to be an exact % of the balance at whatever the balance is, anything other than that is a grid and or martingale?


With decreasing equity yes.
With increasing equity it is anti-martingale.
But it is pure definition. In normal terms I would not be so strict.

Woody12
Sep 12 2016 at 07:07
8 posts
Martingale is a system where your next winning bet covers the previous losing bets - any multiplier less than isn't really martingale.

JayTeeFX posted:
Does anyone know of a nice aggressive martingale EA that will work with ECN broker like vantage???


I second JayTee on that - can anyone direct us to a martingale that works most the time on Vantage RAW ECN? I used to play martingale a lot on roulette - it's not a solid investment strategy but can be a great gambling/quick money strategy!

JayTeeFX
Sep 13 2016 at 06:25
18 posts
#VantageRock ... I second your second Woody ... can anyone name/link to a martingale that actually works?

SACOMBE
Sep 15 2016 at 11:52
3 posts
But.. how you expect to find martingale that actually work, since is proved beyond any doubt that the only way this strategy to work is if you have unlimited bank account and unlimited possibilities to double your bet (trade) ...

Woody12
Sep 16 2016 at 06:41
8 posts
Hey Sacombe, you're right but a lot of people posting here have been using cent accounts which avoids the problem. If you had an EA with a 50% win rate and max consecutive losses less 8 or so .... you could work wonders implementing martingale ... but strategies like that are hard to come across!

What me an JT want is just a an average martingale that usually wins - we'll deposit a couple hundred at Vantage each week - most weeks it will make crazy profits ... every now and then you'll lose your money for that week. I think this is the best way to use Martingale - turn it's weakness into a strength. Of course sometimes you'll lose but who cares.

Problem is no one can seem to point us to a martingale that even works most of the time .... any ideas folks?

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