Money management vs Martingale....

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

 

Nice information, I think I will take into account in my own MM strategies. Would be curious to see what some of the opinions are from the long term traders on here. (I'm still getting my feet wet in forex)

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.

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?

Casey read that article. In effect that is anti martingale with a limit to how much risk you add. Martingale adds to a losing streak, this adds to a winning streak...and that 's key...

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

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.

Does Broker allow us to use Martingale in real account? Can we find in Term of Condition/Agreement or should we read in another source to make sure that martingale is allowed?

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.

Don't using martingale, you will got blow your account.
I'm using scalping with little SL and until now is working.

harin posted:
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.

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...

bscalper posted:
Don't using martingale, you will got blow your account.
I'm using scalping with little SL and until now is working.

Why? is it about martingale system itself or other aspects? like broker or trading rules?

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.

PrinceFx posted:

harin posted:
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.

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...

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

Thank you Harin

good result...

IMO martingale is a trading system that is not based on analyze of market, it's like gamble. So it's better to invest funds to PAMM manager that uses a good trading system based on analyze.
But it's only IMO.😄

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.

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.