Dec 14 2018 at 10:15
Rohitfx posted:
Martingale is a cost-averaging strategy.
It does this by “doubling exposure” on losing trades. This results in lowering of your average entry price.
The idea is that you just go on doubling your trade size until eventually fate throws you up one single winning trade. At that point, due to the doubling effect, you can exit with a profit.
Martingale is a cost-averaging strategy. It does this by “doubling exposure” on losing trades. This results in lowering of your average entry price. The idea is that you just go on doubling your trade size until eventually fate throws you up one single winning trade. At that point, due to the doubling effect, you can exit with a profit.
Martingale can survive trends but only where there’s sufficient pullback. This is why you have to watch out for break-outs of significant new trends – watch out especially around key support/resistance levels.
Trading pairs that have strong trending behavior like Yen crosses or commodity currencies can be very risky.
It does this by “doubling exposure” on losing trades. This results in lowering of your average entry price...
Not exactly martingale can be any increase of trade size when equity is decreasing. so even 1.01
Dec 16 2018 at 09:51
By your explanation you assume that you will have a winning trade that will win for all the other losses, however you are assuming that money is infinite. Martingale is not effective since you just gamble on the prediction that one will be a win, however, maybe you lose all your money before having that winning trade.
Dec 16 2018 at 11:07
Cuz they close big red trades
Dec 17 2018 at 07:21
mmcj posted:
By your explanation you assume that you will have a winning trade that will win for all the other losses, however you are assuming that money is infinite. Martingale is not effective since you just gamble on the prediction that one will be a win, however, maybe you lose all your money before having that winning trade.
You have a common misconception that a lot of people have about Martingale.
There is more than one way to use martingale for lotsize calculations.
For example, if you are trading EURUSD and your strategy indicates a BUY trigger you might open a ticket such as:
EURUSD BUY 0.01 SL 50 pips TP 100 pips
If the ticket hits the SL and closes out, then you might be down $5.00 on the account, so then you would wait for the next setup for entry.
When the new setup occurs on EURUSD, perhaps the strategy once again indicates a BUY trigger you might open a ticket such as:
EURUSD BUY 0.02 SL 50 pips TP 100 pips
If this ticket failed, we would analyze the market and wait for the next setup trigger.
So the next ticket might look slike:
EURUSD BUY 0.04 SL 50 pips TP 100 pips
The direction of the trade would be determined by the markets and your analysis of the situation.
This isn't just opening a trade and hoping it is the right direction. Just because one of the trades failed, doesn't mean we have to immediately enter the markets again and hope or gamble for a winner.
Martingale style lot size calculations can be very useful for doing account recovery in heavily trending currency pairs.
If it looks too good to be true, it's probably a scam! Let the buyer beware.
Dec 17 2018 at 11:07
mmcj posted:
By your explanation you assume that you will have a winning trade that will win for all the other losses, however you are assuming that money is infinite. Martingale is not effective since you just gamble on the prediction that one will be a win, however, maybe you lose all your money before having that winning trade.
Martingale can be profitable, though even its good usage is always risky
Dec 17 2018 at 12:46
I think the title is not correct. I think that in forex or any financial market, there are more than 90% of losers, I would say that it is close to 97%. Why is it hard to say but I think there is not enough training to do trading. Forex is a very liquid market and it takes enough experience to do the job. There are also many people who lack a system that is stable and changes strategies for a long time.
Dec 17 2018 at 13:12
I think it is simple.
People are CHAOS trading, they do not have good trading rules and they do not obey rules.
They trade based on feelings and emotions and greed.
They lack proper education, training and information.
So the outcome is predictable.
Imagine results of surgery done by somebody without
- proper education
- perfect understanding of tools used
- solid and stable table :)
- bright light
Moreover traders are underlevered and thus they are risking too much resulting in loss
...
People are CHAOS trading, they do not have good trading rules and they do not obey rules.
They trade based on feelings and emotions and greed.
They lack proper education, training and information.
So the outcome is predictable.
Imagine results of surgery done by somebody without
- proper education
- perfect understanding of tools used
- solid and stable table :)
- bright light
Moreover traders are underlevered and thus they are risking too much resulting in loss
...
Dec 18 2018 at 17:14
togr posted:
I think it is simple.
People are CHAOS trading, they do not have good trading rules and they do not obey rules.
They trade based on feelings and emotions and greed.
They lack proper education, training and information.
So the outcome is predictable.
Imagine results of surgery done by somebody without
- proper education
- perfect understanding of tools used
- solid and stable table :)
- bright light
Moreover traders are underlevered and thus they are risking too much resulting in loss
...
i agree with you.....good job
Dec 19 2018 at 08:44
well said. To make money doing anything you need understanding and experience. Wthout that failure is a certainty
Dec 19 2018 at 11:29
90% of people are losers at any skill so it is no surprise that most people fail at Forex trading. Most people are not suited or smart enough for activities like Forex. Just like most people cannot be a doctor. Some people are better off doing simpler things
