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Use of martingale strategy

kennyhubbard (compuforexpamm)
Dec 22 2010 at 12:34
게시물266
Paul,

You could always just look at the difference between the balance and the equity.

Of course if you are trading multiple currencies and/or strategies, then by necessity you would have to sort through the various orders using OrderSelect in order to target the trades that should be closed.
Wealth Creation Through Technology
othergoods
Dec 23 2010 at 16:01
게시물21
I have spent over 12 months perfecting martingales to trade safer and better with lower Drawdowns.

Here then are my findings ...

It is all about time-frames, indicators, money management and MDD and ADD drawdown, real vs test, leave them alone !!!

a) Time-frames.
The higher (ie, trade using EA on 1 hour not 1 minute!!! ) the time-frame, the slower and safer it is and the lower the drawdown.
---------------------------------
b). Indicators.
If your indicator keep on re-loading every few seconds - it is missing a bit of code - dump it and use another !

No matter how pretty it looks #;-o)))

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c). Money Management.
I have built martingales that use only 3 extra levels,ie, 1,2,3,4.

These reduce your overall account drawdown and slow things down .

Note :- You can only use if your EA is quite accurate at picking the right direction.

---------------------------------
d). MDD and ADD (Max and Absolute)
It is vital that MDD be kept below 10% - if you are going to run multiple EAs on once account.

Absolute drawdown should preferably be about 25% of max drawdown.

Backtests of 2-3 months is sufficient to check this, but not to stop the big blowouts.

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e). Real trading vs testing.
Do not accept EAs on pairs that give 44% max drawdown, that way is madness I tell you !!!

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f). Leave Them Alone!
Do not - CLOSE EA TRADES IN PROFIT manually .
Do not - CLOSE EA TRADES IN LOSS manually.

EXCEPTION :- After you switch an EA on - run a test on it after 00.00am to introduce all of yesterdays figures to the backtest. The reason is that the EA cannot possible open a trade now at the right price if there was supposed to be one open before the thing was started up ( plus it needs to have right magic number) can it? If there was one and you choose to ignore it well that is your risk, plus future actual live results may not be the same as backtests ! I recommend closing the trade, stopping the EA, and test again tomorrow night (Tonight now) at 00.00am.

---------------------------------

I hope this helps,

Best Regards,

Tom.

PS. If you want to follow my crazy EA's results (Plus my own daft manual trading) as I dump yet another account kep an eye on this (It is not a pretty sight this week - my bad for watching James Bond's, Quantum of Solace, at 4am in the morning one day :))) (I found it mades me a bit gung ho !! - which was Baaad for my account and nearly wiped it out with my manual trades ) keep an eye on this account ... https://instaforex.com/pamm_monitoring.php?x=PQA&user=5004384

PPS. (All the DD in fiirst few days is my manual messing about - the EA will calm it all down over the next few weeks - albeit at 120 trades per day - and 2-5% profits per day :-)

PPPS. You need to ignore percentage profit - as I switched them on when first £11 arrived - but before the other 2 deposits - I have always tested with - live money - to destruction - so Icouldn't help myself - my bad DOH :))))))))

PPPS. Still I sorted it and the account survived and now I will watch and see, join me ...

PPPS. Sorry about Bill n Ted mssing about over there - I guess I am just a goof ball, lol ;)
--------------------------------------------
alameri_s
Feb 18 2011 at 06:56
게시물5
About martingale strategy it's risky and you will depend only on luck if the market jump suddenly for 100+ pips opposite of your order your account will be zero. i think the best strategy is scalping which is safe , risk controlled, and profitable for short and long term.
David (davidjellis)
Apr 08 2011 at 00:44
게시물17

nickster posted:
 of course no martin is safe from a massive steady drop with no retraces.

I have found out today that Gill Fielding is amending her Fielding Financial Robot (FFR) EA so that you can set the number of maximum strings the EA will start as part of the system settings...which effectively means that you can control the risk and can now actually prevent any drawdown losses, even though this is a Martingale system.

Of course if the number of strings hits your maximum, that chart will just sit there earning nothing until the currency pairing bounces back again and you eventually close out a profit, but it does protect you from losing all your momey (or indeed can stop you losing ANY of it) and the only down side I can see is a reduction in profits on a temporary basis.

Sounds like the perfect was to trade Martingale...what do you think?
T1FX (t1fx)
May 04 2011 at 02:13
게시물23
Hi there,

unmanaged martingale is certainly a time bomb waiting to explode.

however, the good side of martingale could be exploided with caution. In my humble opinion, to use martingale successfully, we must first know how to trade, then we shall use martingale as semi manual trading mode. Never let martingale handle the trade fully and pray for it to pass.

I use martingale for years in trading live, imposing a feasible % gain (15% - 25% a month) and take over manually if margin hit certain threshold (-5%-10%) will certain prevent the account from overtraded and margin call.

martingale strategy usually blow the account of users that over abuse it and leave the trade fully auto on martingale utulising all the available margin. If you put good money management to it, this can be a really great trading method.
T1FX, Making Money Is Automatic
Wallace
May 04 2011 at 10:10
게시물86

t1fx posted:
    Hi there,

unmanaged martingale is certainly a time bomb waiting to explode.

however, the good side of martingale could be exploided with caution. In my humble opinion, to use martingale successfully, we must first know how to trade, then we shall use martingale as semi manual trading mode. Never let martingale handle the trade fully and pray for it to pass.

I use martingale for years in trading live, imposing a feasible % gain (15% - 25% a month) and take over manually if margin hit certain threshold (-5%-10%) will certain prevent the account from overtraded and margin call.

martingale strategy usually blow the account of users that over abuse it and leave the trade fully auto on martingale utulising all the available margin. If you put good money management to it, this can be a really great trading method.

I totally agree with you....
Wallace Forex Laboratory conducts research on profitable EAs. Our ultimate goal is to create a portfolio of EAs which can provide consistent profit.
Casey Lim (bestforexea)
May 05 2011 at 02:33
게시물75

t1fx posted:
    Hi there,

unmanaged martingale is certainly a time bomb waiting to explode.

however, the good side of martingale could be exploided with caution. In my humble opinion, to use martingale successfully, we must first know how to trade, then we shall use martingale as semi manual trading mode. Never let martingale handle the trade fully and pray for it to pass.

I use martingale for years in trading live, imposing a feasible % gain (15% - 25% a month) and take over manually if margin hit certain threshold (-5%-10%) will certain prevent the account from overtraded and margin call.

martingale strategy usually blow the account of users that over abuse it and leave the trade fully auto on martingale utulising all the available margin. If you put good money management to it, this can be a really great trading method.

Just what I wanted to hear to continue my pursuit...
T1FX (t1fx)
May 05 2011 at 03:23
게시물23
Perhaps you can try to treat martingale as a global technique - means you close out and stop trading once it hits your desire percentage of gain for the month.

You may try the followings for your martingale adventure:

1. Set a monthly % target. Once hit, stop all and have a break. Come back next trading month. Don't fall prey to GREED. Be happy with the gain, and come back for more next month.

2. Initial martingale lot size only increase every 200% gain. If you use 0.01 with $1000.00, only use 0.02 when your deposit increased to $3000.00. This way u can protect your margin and run martingale at ease, so that you do not expose your margin to the same level of risk as beginning. Never use MM with martingale, e.g. $1000.00 use 0.01, $2000.00 use 0.02...etc.. Thus the longer my account on this strategy, the lower the risk it became.

The above works well for me so far. Before I implement this I always blew my account with martingale..haha... I guess it's a learning curve.

T1FX, Making Money Is Automatic
othergoods
Sep 06 2012 at 15:48
게시물21
Hi again,

well some time has passed, still keeping on trying on new ideals, and on reading back, seems that a) at least one person here HAD cracked the martingale problem and b) someone appears to have ran with at least one of my crazy ideals and found that I was RIGHT . . ie, that by restricting levels you stop it simply blowing up your account.

Well things have moved on, many mini accounts later, and reading back here, I see I missed something else, but discovered this on my own ... Here is the scene ...

My 4-8 months backtests of my 'adapted martingale' had max drawdown of 15-18%.

Well, adding one other ideal reduced MAX DRAWDOWN to 3% !!!!!!!!!!!!!!!!

Ok, you say, and ...

AND INCREASED NUMBER OF TRADES AND PROFITS BY 2 TIMES !!!!!!!!!!!!!!!!!!!!!!!!!!

Now I have looked at a 3 level martingale, but that sticking it to often, a 4 or 5 level one, with just about the best indicators I ever found, means it's very smooth, makes about 50% profit and has 3% drawdown - not even close to busting an account.

I tend to trade EURUSD, USDCHF AUDUSD and GBPUSD at the same time.

I discovered a few other interesting things that helped along the way ( Not that I have said what helped me above - it was mentioned on this thread - not that I listened to it ) .. maybe I should make a list haha...

1). Keep account size the same each day/week.
2). Force the EA to only use part of your account balance. ie 25%
3). Use only as a small part of your overall strategy.
4). Use copier to feed trades to your main account.
5). restrict levels to 4 or 5.
6). Use the best indicators you can find ( ie ones that work on a SINGLE TRADE EA - yes I built on that has 100% profits, works quite well on the martingale EA as well :)
7). Keep multiplier at 1.5X max, do not increase this.
8). Use a LIVE $25 mini account to test. (Sorry , your going to blow this dozens of times, so why waste to much haha)
9). Be ruthlesss - if an EA shows it 'would have' blown your account - IT WOULD HAVE AND STILL WILL - dump it for that pair - it failed.
10). You need to trade on short time frame - but also be right about the longer time frame - ie 4 hrs or daily.
11). Expect to blow many accounts - it's a game.
12). Do not use orders to open the initial trades - open the actual trades using your indicators.
13). The bit I missed, which is mentioned on this thread is .. do not open new trades on a Friday. (Ah bet you feel happier that you didn't have to read all our stuff agin n try to decypher it haha. I would add to this, but as with all humans, once we get the scent, we are off n running. (Tip, don't bother restricting by news, in midle of the day etc - that has no real effect and actually stops a lot of trades - news triggers the trades due to the price moves ya know.

A FEW BONUSES TO HELP YOU CRAZY MARTINGALER YOU HAHA ....

14). Ok, so your getting the ideal, but I though I would give you a bonus ... try it on INSTAFOREX, using 3 pips spread (yuk), but after joining via GETFOREXREBATES.COM, as you get get 1.5 pips back in a few days.
15). You can copy trade at instaforex - copy your own - I do :)

16). And finally ( for now ) ... Try making no profit .. I will repeat that in the form of a question ... WHY ARE YOU TRYING TO MAKE A PROFIT ?????? I try to make PIPS instead ... profits are for dummies .. try making MINUS 0.5 pip each trade .. then see how it does ...



Waaaaaaaaaaaaaaaaaaaa Hhhhhhhhhhhhhhhaaaa aaaaaaaaaaahaaaaahaahahaahahahahahahahaha

Ltrs
othergoods
Sep 06 2012 at 16:16
게시물21
Ok,, so after a cup of Tea, I thought of a few other things that 'helped me' along the way..

16). Set your copier at whatever size of funds you want to risk on the strategy. ie 10 times for $1000. ( Yes, I set up 'feeder' account with $100, not $25, as I am using using 4 currency pairs and restricting them to 25% of the funds, so they use $25 each and so 10 times would need $250 per pair, or $1000.
17). Do not be tempted to increase by more to increase profits, it defeats th whole purpose of restricting and deciding on a certain amount of funds.
18). Instaforex promise to faithfully 'duplicate' your trades exactly, so there is no 'slip' when copying, this is very important, as they can restrict your feed when they detect your account is using larger lot sizes, in other words your feed starts to look strnage, with small tails you know.

Ok, so they are just helping you get the ideal, for when your ea actually does the business or should do, haha.

There are a few more another important consideratiosn to take into account, which I will now mention ...

19). Set your computer date to tomorrow. ( You can test up to the minute !! This is VITAL, and very important and supercedes my point made in my previous post about testing at midnight , the 00.00 bit, in case you didn't get that part).

The reason this is important is because of my last tip, which, as astonishingy simple and obvious as it is, most people miss, or werfe 'missled' about ...

20). BACKTEST RESULTS SHOULD MIRROR ( ie, be IDENTICAL to ) LIVE TRADES.
Sounds simply huh, but also will set up a kind of loop in your head if you not careful, as you have been told, constantly 'backtests' are different to live trading, they cannot be the same, blah blah blah .. THAT IS A LIE !!!

I will repeat the instruction, more clearly, so you know exactly what I am referring to ...

IF YOUR ROBOT OPENS A TRADE AT A CERTAIN PRICE AND A CERTAIN TIME - YOUR BACKTEST MUST OPEN THE SAME TRADE FOR THE SAME PRICE AT THE SAME TIME !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! (Ok, within a pip)

If your backtests do NOT correspond to live trading - dump your EA - it's rubbish and will never work.

21). It is only by constantly checking and running ACCURATE backtests that completely agree with your live trades ( on a live account) that you will master any EA. Anything else it just plain horse shit.
othergoods
Sep 06 2012 at 16:20
게시물21
And yes .. a lot of this advice .. should apply to any EA you are building or testing ... and yes .. if you buy an EA and if performs abismally in backtests .. well guess what .. THATS HOW IT PERFORMS .. in other works .. if the backtests show losses .. so will your forward trades ...

HINT . One of the reasons FAPTURBO does well, is that they restrict the days of trading, I do not condon overally restricting during building and testing, but once you know it works, give yourself a breather .. take Friday off ok haha.
othergoods
Sep 07 2012 at 11:07
게시물21
OK.... so I will put a bit of my money where my mouth is, so to speak ( for want of a better expression ) and have openned a new account and started trading it today ( Friday ) with 10 graphs running with 5 different versions, so about 2 on each.

I am currently working on the one that makes 80 pips profits on one level - it should be a biggie haha.

Here's the link to my copier account ...
https://cabinet.instaforex.com/client/forexcopy/?q=monitoring_user&uid=2117996

Sorry if you do not have a free account there, takes a few seconds ti open one.

To show you I really don't care and am not trying to get anyone to a) join under me or b) [heaven forbid] copy me, here is a link to that REBATES site [1.5 pips per trade] ..

..... GET FOREX REBATES HERE !!!!!!!!!!
.....
       https://www.getforexrebate.com/register.php

Use the link there on that page to join Instaforex [ hold CTRL down and click to open a new window - it's so irritating when people do not code in '_Blank' into their simple HTML ] and then come back to that page ( you have the link so why worry if you do click it an dlose the rebates page - come back after joining - just remember your name haha ) and fill in their simple form.

TIP 1. make sure you add phone number in this style at Instaforex ---> +443049583059830
TIP2 . and use the normal style of complete number at the rebates site ( link above ).

Ok, thats it for me for today, apart from saying I will be back, with some results in about a week, ok next weekend if I can make it.

Ltr Dudes n Dudettes.
othergoods
Sep 07 2012 at 11:18
게시물21
Ok, here are the first few trades - that have openned and closed .. since started typing thie above comment ( just the one above mentioning I was opening a new account for these) ..


Ticket Open Time Type Size Item Price S / L T / P Close Time Price Profit
1124377352 07/09/12 13:53 buy 0.05 usdchf 0.9572 0.9071 0.9594 07/09/12 13:56 0.9572 0
1124377360 07/09/12 13:53 buy 0.02 usdchf 0.9572 0.9071 0.9594 07/09/12 13:56 0.9572 0
1124372533 07/09/12 13:40 buy 0.05 usdchf 0.9574 0.9073 0.9596 07/09/12 13:50 0.9574 0
1124372560 07/09/12 13:40 buy 0.02 usdchf 0.9574 0.9073 0.9596 07/09/12 13:50 0.9575 0.02

14 pips X 1.5 = $0.21
trade profiit $0.02
overall profit $0.23

Now that did not take to long at all, although I must confess, haha, one new trade in same currency pair is still open with 7-10 pip loss ( no, no 2nd trade yet - it's umm .. cogitating haha ;)


The reason for the 2 identical trades opening is one tries to make a little more than the other - well if you look it did, I did mention this kind of thing, but not what I had done about it .. now you can see it in action haha.. [ No, this does not mean all trades are opened at same time, during course of day their different profit profiles cause them to diverge, with one maybe closing on 1st level and other one getting in a little trouble - follow this and you will see it in action ]

I should also mention that this is not a $0.01 starting size, I forgot to mention that the EAs open DIFFERENT START SIZES .. some are bigger starts than others, although I have halved them recently and halved the amount of the account they are each allowed to use .. me being cautioius .. whatever next lol ;)

[ Account is just over $100 start size, mini account, 0.01 lots = $0.01 ]

Remember - this will probably BUST this account soon ok . use this for securing bonuses, earning high commissions, filling insta wallet with profits .. adding funds to other accounts, etc, but not for long term ..

A point here --- you can actually see and monitor my live trades on that account there, do not please try to trade off it, sign up as a follower and pay your small dues if you want to copy me - if your crazy enough, but the 100s of trades daily and the 1000s of revisions and decisions is beyond belief and not to be played at ok. Thanks for listening, I hope this gives you pause for thought, plus maybe a few ideals, perhaps even a few profits for you, well at least for a few weeks before it all goes sky high haha.
tacticalfxtrades
Sep 07 2012 at 17:45
게시물1
I've been trading a martingale strategy since January and up over 150% return. The key is not letting your account be in a position to blow up. How do you do this?

1. Your EA or other system has to have a MAX Buy/Sell orders and once it hits that it doesn't open another trade.
2. Put a stoploss on each trade just in case the perfect storm arises. Calculate your total risk if you opened every trade and every trade hit your stoploss, then adjust it so you're comfortable with the blow if it happens.
3. Know the pair or pairs that you trade and what moves them. I find out the average daily range of the pair I'm trading and I make sure I can ride out 3-4 days, i.e. if the ADR is 100 pips, then I make sure my martingale system can keep opening up trades 300-400 pips away from the starting trade.
4. Don't get greedy, you'll make plenty. I have a $17,000 account and my starting trade is .02 lots. Keep it small.

You can check out my performance at https://www.signaltrader.com/trading-rooms/tacticalfx

Good luck!
okehiedon
Sep 07 2012 at 20:40
게시물2
tacticalfxtrades posted:
I've been trading a martingale strategy since January and up over 150% return. The key is not letting your account be in a position to blow up. How do you do this?

1. Your EA or other system has to have a MAX Buy/Sell orders and once it hits that it doesn't open another trade.
2. Put a stoploss on each trade just in case the perfect storm arises. Calculate your total risk if you opened every trade and every trade hit your stoploss, then adjust it so you're comfortable with the blow if it happens.
3. Know the pair or pairs that you trade and what moves them. I find out the average daily range of the pair I'm trading and I make sure I can ride out 3-4 days, i.e. if the ADR is 100 pips, then I make sure my martingale system can keep opening up trades 300-400 pips away from the starting trade.
4. Don't get greedy, you'll make plenty. I have a $17,000 account and my starting trade is .02 lots. Keep it small.

You can check out my performance at https://www.signaltrader.com/trading-rooms/tacticalfx

Good luck!

Nice performance. Could you please explain the mart strat you are using?
othergoods
Sep 07 2012 at 22:10
게시물21
tacticalfxtrades posted:
I've been trading a martingale strategy since January and up over 150% return. The key is not letting your account be in a position to blow up. How do you do this?

1. Your EA or other system has to have a MAX Buy/Sell orders and once it hits that it doesn't open another trade.
2. Put a stoploss on each trade just in case the perfect storm arises. Calculate your total risk if you opened every trade and every trade hit your stoploss, then adjust it so you're comfortable with the blow if it happens.
3. Know the pair or pairs that you trade and what moves them. I find out the average daily range of the pair I'm trading and I make sure I can ride out 3-4 days, i.e. if the ADR is 100 pips, then I make sure my martingale system can keep opening up trades 300-400 pips away from the starting trade.
4. Don't get greedy, you'll make plenty. I have a $17,000 account and my starting trade is .02 lots. Keep it small.

You can check out my performance at https://www.signaltrader.com/trading-rooms/tacticalfx

Good luck!

Nice results.

I see that you trade one pair, you use 20 cents [0.02 lots] starting lot size , on a $10,000 account, with 25-45 pips(approx) between each new level.

To compare:-

- I am using 4 pairs, with each able to open 2-3 separate trades, starting lot size, if my account was $10,000, would be $2.00 to $5.00 per pip.

- The EAs can open 4-5 levels (depending on currency pair and tactic used).

- I do not use a set open amount of pips and my orders to do sit there waiting for the price - they chase it.

I am not certain at the present levels that the small account I am testing on ( I have to test live ok - the main difference is I am talking here ) will survive, it's not the strategy, or the EAs, which are great, it's the speed I have set them at.

I guess you could say I am pushing the boundaries here .. so if this account fails .. I will reduce and try again.

I constantly check each robot strategy by pair individually to make sure that they would have survive and do remain within parameters, if they had traded on their own, of course they all get lumped in together as I am testing multiple EAs live and looking for the best returns.

Returns for me means pips traded as much as monetary profits.

The thing that is vital and far more important to me than the small amounts I am testing, is that I need to know that they are still cope with conditions in each pair.
othergoods
Sep 07 2012 at 23:45
게시물21
OK, so one of the things I am most determined to emphasise {constantly - I know :) }, is that this is a test, this is not a serious attempt to 'make money' today ok.

Bearing this in mind, after starting these tests today, during backtesting tonight I noticed a couple of quite serious differences in todays trades and tests, firstly due to funds coming in in a couple of parts, so trade start sizes wre to small and secondly as the EA should not have openned the trade at all as it was Friday.

I am pleased to say that if funds had arrived these trades would have all closed, albiet with 12-20% depending on whether I ahd used 4 or 5 levels.

With my codes corrected maz drawdown would be 3.79%, so although I could leave this version running, I am going to reset and start on a new account from Monday, which I will post here once I have it up and running.

As the trades stand, they missed a number of opportunities, either not to be there at all, or to have closed, some hours earlier at 13.45 and other versions just before market closed ( at about 22.30pm according to server time).

SO WE RESET AND GO AGAIN NEXT WEEK ..

othergoods
Sep 08 2012 at 00:13
게시물21
Ok, so the tests on GBPUSD are coming in as follows ..

On a $100 account ... Profit $11.7%, Trades =101, Max Drawdown = 3.79%, Max Levels Used = 4 (Allowed 5 ), start lots = $0-.02

On a $25 account, drawdown comes out around 6%, as it is simply not possible to make the starting trade size smaller than $0.01.

othergoods
Sep 08 2012 at 00:14
게시물21
So this looks like a 4 level only martingale over the short term, the 5th level is for that one time when market waves get bigger.

Although on the surface my system appears dangerous, it really has been developed to be as quick and as safe as possible, I have tried to make ti a) not open trades and b) close them as soon as possible, it's more an acknowledgement that I am not in control of the market, that in fact even though the indicators say to trade that it can change, due to the elliot wave nature of the forex market this strategy works, sure it is called a martingale, sure it opens a few levels, but it is not what people normally think of as a full blown martingale strategy, it is designed to not eat up accounts, it is designed to allow you to ride out waves or not even be in the market.

Now I will test my other pairs and robots and see how their coping with the revisions I am making now...

It's a real work in progress here :)
othergoods
Sep 10 2012 at 06:21
게시물21
So, well after worrying over the weekend, I left my account alone and the trade closed, even though the Frdiay trades should a) not have opened, at all if my coding to restrict it was in the right place and b) backtests confirmed that it would have closed if funds were in place at time trades opened.

That said, there WAS a good reaon for leaving my account at risk, I attach a screenshot ( if I can here) few of my charts to show why analuyses revealed at turning point on Friday that meant my type of robots would be able to successfully close this morning...
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