I am fishing for some ideas that I can try and want to open a general discussion as I have not found something similar on this forum.
I love Martingale strategies, for me, it is really the only way to trade if you want to set and forget.
But nobody talks about recovery strategies.
Basically, I created a martingale strategy that aggressively opens trades on a cent account
for example
if I open a buy order (does not matter which strategy I use), on every bar that closes down below the last open order price, I open another trade, increasing the lot size by 5 - 10%.
It works quite well, but the issue of course that plagues all martingale strategies is when this strategy goes into deep drawdown, how do you recover?
I am comfortable until the 100-level deep level, the account blows at the 150 level.
Hedging, where I open a trade in the opposite direction works (sell in this example) and start to close the open trades on a FIFO basis till a point, but fails if the trend continues in the opposite direction as eventually, you run out of money.
Any ideas to discuss and test would be welcome
I love Martingale strategies, for me, it is really the only way to trade if you want to set and forget.
But nobody talks about recovery strategies.
Basically, I created a martingale strategy that aggressively opens trades on a cent account
for example
if I open a buy order (does not matter which strategy I use), on every bar that closes down below the last open order price, I open another trade, increasing the lot size by 5 - 10%.
It works quite well, but the issue of course that plagues all martingale strategies is when this strategy goes into deep drawdown, how do you recover?
I am comfortable until the 100-level deep level, the account blows at the 150 level.
Hedging, where I open a trade in the opposite direction works (sell in this example) and start to close the open trades on a FIFO basis till a point, but fails if the trend continues in the opposite direction as eventually, you run out of money.
Any ideas to discuss and test would be welcome