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What's the best way to trade Martingale Forex Trading

Rajiv (rajivzz)
Oct 31 2014 at 15:08
posts 30
What's the best way to trade Martingale Forex Trading , any idea??

Its working No GRID, No MARG, No ARB, No HEDGE ,No HFT Open and Close single trade at a time Avg. Trade Length: 1 Hour Expectancy: 1.8 Pips Near 600 Pips Made in 2.5 months Verified Real Account (Double Green Ticks)
Fritz125
Nov 01 2014 at 10:48
posts 4
Well ill give you my personal advice:

Don't use a Martingale system, because in a few trades you could lose all your investment easily

But if you really feel like using a Martingale then the easiest thing you could do is get/make an EA which invests, let's say, 1 lot then code it that when the stop loss is reached open a trade with 2 times the amount

But as i said, if i was you, i would stay away from any Martingale driven strategy

Rihan
RSTrading
Nov 01 2014 at 17:08
posts 385
Also not a fan of martingale/grid type strategies, but there are some who swear by this and will show you how well this performs on demos, they even run demo accounts for you to track the account's performance on myfxbook, but as soon as @*& hits the fan and dd seems like it is going south, they quickly disable the mt4, and only show you how well it performed. I have seen many traders lose lots of $ going live with martingale EAs that did super on demos, but then crashed their accounts in live. There was a time that I investigated the whole use-martingale-and-withdraw-regularly idea, but I was not convinced.

If you still want to go this route here is a little bot that might be of help. You can set it to cease all trading on your account, once a certain % or value is reached. Quite helpful in case you wake up to find your account wiped. Even though I don't use a martingale strategy, I use this bot as a safe guard, thankfully it has never been hit, but if my EA gets caught in a horrible trade, I am prepared.

Bob LLewellyn (ForexAssistant)
Nov 01 2014 at 23:13
posts 465
A martingale system isn't a trading system, it is a recovery system. If your trading system was 100% right, you would not need any recovery system so a martingale recovery is good only if your trading system is correct more than 50% of the time. There is also a slow recovery system which doubles the value of the trades until the lost amount is fully recovered.

It is far better to use the two together so you can limit the martingale in size and use the slow recovery to recover from a martingale failure.

However, the martingale still grows too fast and you can reduce the amount of increase by passing some of the recovery over to the amount of pips required for recovery. Lets compare a martingale sequence to a Fibonacci sequence.

Iteration Martingale value Fibonacci
1 1 1
2 2 2
3 4 3
4 8 5
5 16 8

As you can see, the size of the martingale is twice the size of the Fibonacci sequence by the 5th iteration. The difference is that the martingale will fully recover all losses with the same number of pips (range size) as the previous losses where the Fibonacci will start at the same size but will grow to 1.62 times the normal range size. It will never get larger than 1.62 times the size, the number of pips, as the losses were.

You can and should use a slow recovery system to compensate for any Fibonacci failures. A failure is reaching a predefined number of iterations before starting over at twice the size. This is called recovery mode and you would stay in recovery mode until you have fully recovered from the failure.

https://www.myfxbook.com/members/ForexAssistant/pegasus/670938

This system is in recovery mode. It was hell getting it to take a double loss but I finally was able to do it so I could test out a worse case scenario, I almost got it to a 50% draw-down to see how long it would take to recover but the price of the eur/usd jumped over a weekend and the program recovered a huge amount before I could intervene. So I gave up and am testing from where it jumped too. However, all the history is there so you can follow the logic.

Of course if you really want to learn systemic trading, I am excepting students.

Hope this helps,

Bob

where research touches lives.
Rajiv (rajivzz)
Nov 06 2014 at 07:47
posts 30
ForexAssistant posted:
A martingale system isn't a trading system, it is a recovery system. If your trading system was 100% right, you would not need any recovery system so a martingale recovery is good only if your trading system is correct more than 50% of the time. There is also a slow recovery system which doubles the value of the trades until the lost amount is fully recovered.

It is far better to use the two together so you can limit the martingale in size and use the slow recovery to recover from a martingale failure.

However, the martingale still grows too fast and you can reduce the amount of increase by passing some of the recovery over to the amount of pips required for recovery. Lets compare a martingale sequence to a Fibonacci sequence.

Iteration Martingale value Fibonacci
1 1 1
2 2 2
3 4 3
4 8 5
5 16 8

As you can see, the size of the martingale is twice the size of the Fibonacci sequence by the 5th iteration. The difference is that the martingale will fully recover all losses with the same number of pips (range size) as the previous losses where the Fibonacci will start at the same size but will grow to 1.62 times the normal range size. It will never get larger than 1.62 times the size, the number of pips, as the losses were.

You can and should use a slow recovery system to compensate for any Fibonacci failures. A failure is reaching a predefined number of iterations before starting over at twice the size. This is called recovery mode and you would stay in recovery mode until you have fully recovered from the failure.

https://www.myfxbook.com/members/ForexAssistant/pegasus/670938

This system is in recovery mode. It was hell getting it to take a double loss but I finally was able to do it so I could test out a worse case scenario, I almost got it to a 50% draw-down to see how long it would take to recover but the price of the eur/usd jumped over a weekend and the program recovered a huge amount before I could intervene. So I gave up and am testing from where it jumped too. However, all the history is there so you can follow the logic.

Of course if you really want to learn systemic trading, I am excepting students.

Hope this helps,

Bob


you are correct bob
that why i am working on this ea same results on all pairs expt eurusd

Fichiers joints:


Its working No GRID, No MARG, No ARB, No HEDGE ,No HFT Open and Close single trade at a time Avg. Trade Length: 1 Hour Expectancy: 1.8 Pips Near 600 Pips Made in 2.5 months Verified Real Account (Double Green Ticks)
Tung Tran (moneyrainvn)
Nov 16 2014 at 15:55
posts 9
Some my friends try code over 30 types of martingale EA already, now he said no type win, all Martingale system crash/wipe out all accounts.
So sad but true!

Profit for investor
rob559
Nov 16 2014 at 16:04
posts 1916
if you are serious with your money you won't use any martingale

Bob LLewellyn (ForexAssistant)
Nov 16 2014 at 19:45
posts 465
rob559 posted:
if you are serious with your money you won't use any martingale


I've never seen an absolute that held true for very long. All you need is one recovery program to work and all the deeply held truths that 'Martingales will eventually blow up your account' are seen for what they truly are, fear of the unknown. Do you think any trading system works right from the first? No, that's not how it's done. First we get something that seems like it will work then work with it for years.

The problem with the young traders is that they haven't had enough time on the job to know what works, so nothing does. If you can go away and come back in 20 years or so, this brand new market will have been around long enough for us to develop something that will work and earn you about what stocks are making you right now.

I have a recovery system that works, although I still have a little bug in the program that I am fighting with. So I know from actual experience that there is a recovery system (which is generally called a Martingale) that does work therefore the advice to not try something that does work because there was 30 ones that didn't, seems to be somewhat irrational.

May I suggest a statement more on the order of, 'I have been trading (BLANK) number of years and have yet to see a (System in question) to work without eventually crashing the account'.

I have been trading the forex market since June 2006 and in all that time, I have only seen one recovery system that I would put my money with.

Remember, 'If man was meant to fly, he would have wings', so we just made some. Everything is impossible until someone is the first to do it.

May the Forex be with you.

Bob

where research touches lives.
Rajiv (rajivzz)
Nov 17 2014 at 07:58
posts 30
Well I understand everything about martingale and risk, I start trading in 2007 ,1st 2 years in local market after 2009 in forex, i also have strategies that even work without martingale but I like it too, now its my martingale ea performance on tick data test with Fix 300$ SL on a pair of trades , how you think guys hows it look like ?? 😀😀😀

Fichiers joints:


Its working No GRID, No MARG, No ARB, No HEDGE ,No HFT Open and Close single trade at a time Avg. Trade Length: 1 Hour Expectancy: 1.8 Pips Near 600 Pips Made in 2.5 months Verified Real Account (Double Green Ticks)
Chistopher Robin (ChrisMuzhik)
Nov 24 2014 at 08:08
posts 65
U may double your deals in way if you have endless amount of money... don't use such strategy if you have small depo

There can't be enough money
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