I was reading various sources on the internet concerning the Martingale system and it got me to thinking...
Instead of doubling the amount of money for each trade after each loss (the martingale system), has anyone tried starting with a relatively small amount of money (such as $20, $50 or $100) and then doubling your winnings on several consecutive trades? (risking 100% on every trade).
I'm sure this must have been done before (or I'm sure someone has at least thought of it before). I calculated what someone would make if they started out with a $20 micro-account, with a 30 pip SL and 30 pip TP on each trade, and risking 100% of their account/winnings for 6 consecutive trades - and then winning all 6 trades. The result was that their mesley $20 account would turn into $1154 in just 6 trades! And afterwards, you can bank $1054 and leave $100 in your trading account. You then follow the same steps trading as you did with your $20 account. Except this time, you will be trading the entire $100 + winnings for several consective trades. If you had 6 straight wins - as you did in your $20 account - you would have a profit of $6337 in those 6 trades. But wait, imagine if you were able to string together 10 consecutive wins. That would come to ... hold on to your chair ... $101,377 in only 10 trades, risking only $100!! I'm sure there have been a quite a number of traders that have managed to put together 10 consecutive wins before, so I don't see it being any impossible task.
Has anyone tried anything like this before? I think the reward far outweighs the risk ... at least, in the $20 example I gave. Now, if you try this with $5000 and you barely make enough money to pay the rent and buy food, then definitely the risk is far too great to take a chance with such a large amount of money. Anyway, has anyone done something like this before, or know someone who has?
Topgun
Instead of doubling the amount of money for each trade after each loss (the martingale system), has anyone tried starting with a relatively small amount of money (such as $20, $50 or $100) and then doubling your winnings on several consecutive trades? (risking 100% on every trade).
I'm sure this must have been done before (or I'm sure someone has at least thought of it before). I calculated what someone would make if they started out with a $20 micro-account, with a 30 pip SL and 30 pip TP on each trade, and risking 100% of their account/winnings for 6 consecutive trades - and then winning all 6 trades. The result was that their mesley $20 account would turn into $1154 in just 6 trades! And afterwards, you can bank $1054 and leave $100 in your trading account. You then follow the same steps trading as you did with your $20 account. Except this time, you will be trading the entire $100 + winnings for several consective trades. If you had 6 straight wins - as you did in your $20 account - you would have a profit of $6337 in those 6 trades. But wait, imagine if you were able to string together 10 consecutive wins. That would come to ... hold on to your chair ... $101,377 in only 10 trades, risking only $100!! I'm sure there have been a quite a number of traders that have managed to put together 10 consecutive wins before, so I don't see it being any impossible task.
Has anyone tried anything like this before? I think the reward far outweighs the risk ... at least, in the $20 example I gave. Now, if you try this with $5000 and you barely make enough money to pay the rent and buy food, then definitely the risk is far too great to take a chance with such a large amount of money. Anyway, has anyone done something like this before, or know someone who has?
Topgun
"Success is not a fantasy, it's a formula." - MTI