Martingale-hedge strategy could potentially hold if you are flat betting but in terms of safety it is conceptually flawed and your survival depends heavily on chance alone. I say this with conviction because I have already coded and back-tested this strategy over a hundred times. The problem I noticed is that when you compound returns by % the risk of ruin stands in arms reach from you and you're perpetually at risk of losing your initial investment. Your equity curve will look great till that drawdown alligator comes launching out for your next sip of water. And there is nothing more ferocious than a Martingale drawdown, (ie forex cruise control on zulutrade). It's only a matter of time
- View Post
- Hidden for breach of Trader Code of Conduct
- | Joined Mar 2011 | Status: Member | 441 Posts
'For the market to work, it needs people who think that they can beat it.'