You see only losing pips!! don't see it's gain over 45% in third month? Pips are losing because lot size is different. Myfxbook calculate pips equal for all lot size. So if we loss 100 pip in 1 lot but win 20 pip in 10 lot - MyFxbook show -80 Pips but actual gain will be 100 pips ( 20*10-100*1 = +100 ). Is it clear?
Yes it's a martingale strategy along with trend analysis. I am trading 0.01 initial lot with a balance of $10,000 and maximum lot size is 0.40 lot at 16th step. I am testing it to see how much it can earn with this settings.
This is a Martingale strategy where we open successive positions in one direction(buy or sell) with higher lot size and wait for return of the market. If price move too much in one direction the system may fail. Recently EURJPY moves more than 380 pips without required retrace but current settings it can sustain up to 320 Pips and need 30% retrace to exit without loss. So this system fails at third month after wining more than 50% profit.
To make this system sustainable we need to make it more flexible by 1.Increase entry steps 2. Reduce lot size 3. Invest more capital. All of these update will reduce profitability but we can sustain in more unexpected market condition.
I'm very glad to see that at least one trade have the same martingale hedging strategy. We have different settings but the same idea.
I have only 3 steps and I have coding it for fun to backtest it. The EA is very performing when you have the right settings.
'So this system fails at third month after wining more than 50% profit' --> What do you mean by 'fails'? did you loose money at the end of your strategy on EURJPY. I have a beautifull Money Mangement, that means that 'If price moves too much in one direction the system may fail' I don't loose money and I have to restart the strategy from the biginning.
I'm still currently on first step on this startegy on 5 pairs. One of them is over 450 pips with a lotsize = 0.05 and 2000 deposit on real account.
Good luck with the best strategy ever on Forex.... especially I haven't talked it about when it is mixed with the carry trading startegy.
Thanks for your opinion about martingale strategy.
Yes I agree that there should be a perfect setting to get regular profit from it.
My current setting has 16 step to cover up to 320 pips, starting volume is 0.01 and at 16th step it goes up to 0.40 I have $10,000.00 in my demo account starting on July 09, 2012. In last two month and one week it earns more than 50% profit and current balance is over $15000.00
I still in trade on six pairs EURJPY, GBPJPY, USDJPY, CHFJPY, GBPUSD and EURGBP - but in recent price move we reached more than $10,000 loss, i.e 100% draw down. I think no one can trade with such a high level of risk.
I am trying to update settings so that it can sustain in high price move with low draw down - but that will reduce it's profitability at the same time, that is the problem!!
We have survived from a very high movement in EURJPY and CHFJPY. Both of them reached it's maximum step but now they return more than 40% and we can exit with a huge profit. Now total gain reached 59% within two and half month.
But it shows a very high level of risk near about 100% for $10,000 capital to trade 0.01 initial standard lot on six pair. We may need some more capital to make it safe from this type of market condition. We also include some more options to avoid opposite market trend.
OMG, I just paid attention to your strategy looking at closed trades and current positions. I do understand why you have a drawdown going crazy!!! Your strategy is the only thing not to do in FOREX market... If you know the recent story of Kweku Adoboli the trader from UBS... you will realise that you will loose everything in one day because you trade against the market. (I know the emotion you feel when you see all your martingale position going worst and worst... and don't forget it is demo account. You have no idea what you feel if you do this strategy with real account!!!)
I thought your were doing Hedging Martingale!!! => that is the only way to make HUGE profit with the LOWEST risk!!!
Good luck going in the wrong strategy that it has already been tested 10 000 times before you, you know that I hope!!!
Never do that in real account whit 10 000€ deposit... OMG!!!
In last 3 months we have maximum draw down of $10,000 and earn more than 20% profit per months from 6 currency pair. If we can invest $20,000 than maximum draw down remain within 50% and profit will be more than 10% per months. We also can run the EA on 3 best pairs to reduce draw down risk, but that will also reduce profitability.
After three months of demo trading I have found some points to improve in this strategy. After improvement it will be more safe to sustain up to 400 Pips move in one direction within 16 steps.
This updated EA is running from today and we will see it's performance in next few months.
This is for starting lot of 0.01 per 10,000 capital that can earn more than 20% monthly. If we satisfy with 10% monthly return, can invest 20,000 to trade 0.01 initial lot then it can sustain forever.
In this test we use four pairs based on one currency USDJPY,EURJPY, CHFJPY and GBPJPY - so all of them follow JPY movement and make huge loss at the same time. We should diversify our investment including other currency to reduce this risk.
Finally, Forex should not be taken as quick rich way, rather think as a regular financial investment. In any financial investment 3% monthly ~ 36% yearly is considered as excellent return. So we never try to make more than 5% monthly profit from Forex investment.
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