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Money management vs Martingale....
forex_trader_7
Membre depuis Aug 01, 2009
posts 941
Apr 24, 2010 at 01:01
Membre depuis Aug 01, 2009
posts 941
I found this recently and thought some of you might be interested.
It's one persons application of MM and a much better bet than Martingale I believe.
https://www.winnersedgetrading.com/trade-of-the-day/nytime-money-management
It's one persons application of MM and a much better bet than Martingale I believe.
https://www.winnersedgetrading.com/trade-of-the-day/nytime-money-management
forex_trader_7
Membre depuis Aug 01, 2009
posts 941
Apr 24, 2010 at 04:27
Membre depuis Aug 01, 2009
posts 941
Prof Van Tharp https://en.wikipedia.org/wiki/Van_K._Tharp also had a lot to say about this.
Basically it addresses the role of streaks on trading and how to deal with them. Increase the trades when it's going for you, decrease when you suck.
Basically it addresses the role of streaks on trading and how to deal with them. Increase the trades when it's going for you, decrease when you suck.
Membre depuis Oct 29, 2009
posts 75
Apr 24, 2010 at 04:58
Membre depuis Oct 29, 2009
posts 75
Having experiences both situation... I am still trying to find if there is a balance between money management and martingale strategies.
The idea of managing drawdown from martingale with probably hedging vs MM when trades are moving in your favour.
Is there such a thing?
The idea of managing drawdown from martingale with probably hedging vs MM when trades are moving in your favour.
Is there such a thing?
NEVER say DIE!!!
forex_trader_7
Membre depuis Aug 01, 2009
posts 941
forex_trader_3463
Membre depuis Nov 22, 2009
posts 31
Apr 24, 2010 at 14:03
Membre depuis Nov 22, 2009
posts 31
Thats a pretty good article and advice. I really don't think you can spend to much time on perfecting the MM style that works for you and your system. I have worked with some algorithms in my EA that decrease lot sizes when a streak of losers appear. I do think that it can keep you from getting wiped out, especialy when a robot is doing the trading
forex_trader_7
Membre depuis Aug 01, 2009
posts 941
Apr 24, 2010 at 15:20
(édité Apr 24, 2010 at 15:21)
Membre depuis Aug 01, 2009
posts 941
Well, one concept that i find very important is this:
If you have 100 bucks and you lose 10% you have 90 bucks. If you add 10% to 90 bucks you have 99 bucks, not 100.
If you lose 50% of 100 bucks it's 50 bucks, if you add 50% to 50 bucks, it's 75 bucks, so to break even on a 50% loss you have to make 100%.
Don't lose. Which is what that article is about, or if you're losing lose less or nothing.
If you have 100 bucks and you lose 10% you have 90 bucks. If you add 10% to 90 bucks you have 99 bucks, not 100.
If you lose 50% of 100 bucks it's 50 bucks, if you add 50% to 50 bucks, it's 75 bucks, so to break even on a 50% loss you have to make 100%.
Don't lose. Which is what that article is about, or if you're losing lose less or nothing.
Dec 09, 2014 at 08:04
Membre depuis Jun 16, 2011
posts 4
I don't think they put it directly but you'll see the controls they put to limit/stop it:
e.g. exness and hotforex
- leverage (they lower the leverage when your balance gets higher or during holidays and weekends - e.g. https://www.exness.com/forex/leverage or https://www.hotforex.com/en/account-types/account-comparison.html)
- Minimum volume of position (they increase the volume requirement when your account gets bigger - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum cumulative volume of positions / Maximum Total Trade Size (Lots) (not in exness but other limit the max volume - e.g. https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum number of positions (they lower your max open positions when you have a highly leveraged account - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Stop out level (stop out level increases on highly leveraged accounts - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
Other brokers also do that. Those details are some that I look out for when I search for a broker. The ones that have the 'best' conditions like high leverage, no min/max on volume and open positions, and low stop out levels are usually scams based from my experience.
e.g. exness and hotforex
- leverage (they lower the leverage when your balance gets higher or during holidays and weekends - e.g. https://www.exness.com/forex/leverage or https://www.hotforex.com/en/account-types/account-comparison.html)
- Minimum volume of position (they increase the volume requirement when your account gets bigger - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum cumulative volume of positions / Maximum Total Trade Size (Lots) (not in exness but other limit the max volume - e.g. https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum number of positions (they lower your max open positions when you have a highly leveraged account - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Stop out level (stop out level increases on highly leveraged accounts - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
Other brokers also do that. Those details are some that I look out for when I search for a broker. The ones that have the 'best' conditions like high leverage, no min/max on volume and open positions, and low stop out levels are usually scams based from my experience.
Dec 09, 2014 at 08:16
Membre depuis Oct 02, 2011
posts 35
harin posted:Would you give me those 'clues information' for Think Forex? Sory, English is my second language, so I am not aware yet about this kinds information...
I don't think they put it directly but you'll see the controls they put to limit/stop it:
e.g. exness and hotforex
- leverage (they lower the leverage when your balance gets higher or during holidays and weekends - e.g. https://www.exness.com/forex/leverage or https://www.hotforex.com/en/account-types/account-comparison.html)
- Minimum volume of position (they increase the volume requirement when your account gets bigger - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum cumulative volume of positions / Maximum Total Trade Size (Lots) (not in exness but other limit the max volume - e.g. https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum number of positions (they lower your max open positions when you have a highly leveraged account - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Stop out level (stop out level increases on highly leveraged accounts - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
Other brokers also do that. Those details are some that I look out for when I search for a broker. The ones that have the 'best' conditions like high leverage, no min/max on volume and open positions, and low stop out levels are usually scams based from my experience.
Cent account matter$
Dec 09, 2014 at 08:20
Membre depuis Oct 02, 2011
posts 35
bscalper posted:Why? is it about martingale system itself or other aspects? like broker or trading rules?
Don't using martingale, you will got blow your account.
I'm using scalping with little SL and until now is working.
Cent account matter$
Membre depuis Feb 22, 2011
posts 4862
Dec 09, 2014 at 09:02
Membre depuis Feb 22, 2011
posts 4862
Elkart posted:
I found this recently and thought some of you might be interested.
It's one persons application of MM and a much better bet than Martingale I believe.
https://www.winnersedgetrading.com/trade-of-the-day/nytime-money-management
It is only useful for strategies that lose or win more trades in row.
Dec 09, 2014 at 11:24
Membre depuis Jun 16, 2011
posts 4
PrinceFx posted:harin posted:Would you give me those 'clues information' for Think Forex? Sory, English is my second language, so I am not aware yet about this kinds information...
I don't think they put it directly but you'll see the controls they put to limit/stop it:
e.g. exness and hotforex
- leverage (they lower the leverage when your balance gets higher or during holidays and weekends - e.g. https://www.exness.com/forex/leverage or https://www.hotforex.com/en/account-types/account-comparison.html)
- Minimum volume of position (they increase the volume requirement when your account gets bigger - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum cumulative volume of positions / Maximum Total Trade Size (Lots) (not in exness but other limit the max volume - e.g. https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum number of positions (they lower your max open positions when you have a highly leveraged account - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Stop out level (stop out level increases on highly leveraged accounts - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
Other brokers also do that. Those details are some that I look out for when I search for a broker. The ones that have the 'best' conditions like high leverage, no min/max on volume and open positions, and low stop out levels are usually scams based from my experience.
it looks like it's not on one page, probably on the user agreement, but you can find some info here:
https://www.thinkforex.com/markets/contract-specifications
https://www.thinkforex.com/why-thinkforex/regulation/margin-call-policy
https://www.thinkforex.com/trading-platforms/trading-account-types
forex_trader_191821
Membre depuis May 23, 2014
posts 12
Feb 02, 2015 at 20:26
Membre depuis Jan 29, 2015
posts 12
martingale is a very risky method of investing. The main idea behind the Martingale system is that statistically you cannot lose all the time, and therefore you should increase the amount allocated in investments--even if they are declining in value--in anticipation of a future increase.
The Martingale system is commonly compared to betting in a casino. When a gambler using this method loses, he or she doubles his or her bet. By repeatedly doubling the bet when he or she loses, the gambler will (in theory) eventually even out with a win. Of course, this is assuming the gambler has an unlimited supply of money to bet with.
The Martingale system is commonly compared to betting in a casino. When a gambler using this method loses, he or she doubles his or her bet. By repeatedly doubling the bet when he or she loses, the gambler will (in theory) eventually even out with a win. Of course, this is assuming the gambler has an unlimited supply of money to bet with.
Membre depuis Jan 27, 2015
posts 1
Feb 03, 2015 at 08:04
Membre depuis Jan 27, 2015
posts 1
fx_book posted:
When a gambler using this method loses, he or she doubles his or her bet. By repeatedly doubling the bet when he or she loses, the gambler will (in theory) eventually even out with a win.
And the reality is that, suppose he starts with a $1 bet, after 8 losses his next bet will risk $512. If he wins the whole episode has won him $1, if he loses he has lost $1022. Nice r/r.
forex_trader_202879
Membre depuis Aug 07, 2014
posts 406
Feb 03, 2015 at 15:54
Membre depuis Aug 07, 2014
posts 406
fx_book posted:
martingale is a very risky method of investing. The main idea behind the Martingale system is that statistically you cannot lose all the time, and therefore you should increase the amount allocated in investments--even if they are declining in value--in anticipation of a future increase.
The Martingale system is commonly compared to betting in a casino. When a gambler using this method loses, he or she doubles his or her bet. By repeatedly doubling the bet when he or she loses, the gambler will (in theory) eventually even out with a win. Of course, this is assuming the gambler has an unlimited supply of money to bet with.
Very well sad. The crazy thing about martingale and forex is that many people say that martingale is a 'system', when it isn't. When you are in a casino, it is your system, but in forex it isn't. Say you have any one given system, and you believe it to be accurate enough where as you don't experience more then 5 straight losses. Why wouldn't you use martingale with such an accurate system?Simply using martingale in trading while taking bias entries will more then likely end up in a quick margin call.
Recommendation is to find a very accurate trading system with a very small avg Pip-drawdown, and use martingale with such system.
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