Has anyone tried doubling their winnings each trade?

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

http://www.forexfactory.com/showthread.php?t=11566&highlight=pyramid

It's funny, I've thought about this yesterday evening.

@permanentjaun: That's an interesting link but a slightly different approach.

The problem is that the probability for beeing right 10 times is not that high.

Let's assume a winning probability of 50%:

For the first trade, your winning probability is: 50%
For two trades: 25%
3 trades: 12.5%
...
10 trades: 0.0977%

Or just: 1024:1.

You see it's still better than lottery.

I've been playing around with the Trading Simulator yesterday evening.
I've tried doubling after winning but that was way to risky.
Whereas when took a lot size so small that my margin call rate was 380 Pips away and went for 30 pips with some high probability Price Action Setup I was able to achive 640% ROI easily within weeks. So that might be better than doubeling.
If you take your Balance (10.000$) and divide it by 1000 and by 32 which gives you 0.31 Lots your Margin Call is 3304 Pips away. You need a winning streak of 247 @ 30 Pips to get to 100k $. That does'nt sound too impossible when trading the larger trend. I only used a MA Rainbow for trend recognition. Of course you should withdraw your initial deposit after you doubled it ( 75 Trades )

Interesting Tjpld! What timeframes did you use?

Timeframe is irrelevant. I just used the M5 Timeframe because the playback is very smooth and the intraday swings will take out my orders. If you use H4 in your simulator you'll probably not be able to place multiple orders during a single day. I just fliped a coin for my derection and managed to increase my account by 40% with almost zero risk and no trading system at all in one demo month. Betting that price moves 30 pips in one direction rather than dropping 3400 Pips and never coming back is probably the savest bet you can take. After all Forex is all about probability.
After you reached your first 100k you could open 10 new accounts and start again. This would spread the allready minimal risk even more.

Almost, yes. But looking at august/september this year this just happened.

I assume that you enter new trades even though there are old "danglers" for that kind of style? Or do you wait for every trade to close before a new one?

No only one at a time. So there is nothing that will eat up your margin.
You could open 2 trades one long and one short. So one will get hit instantly and only open a new 2 directional trade after the left over is take out. So you have never more than 1 open trade.
If you want to survive even the biggest meltdown in history.
Divide your balance by 1000 and 64. This means your Margincall is 6600 Pips away and you need ~500 Winners for a 1000% increase. Which still could be done in less than a year. I'd be happy with 1000% in 3 years if you ask me.

Hmm... but it may take years until a trade reaches a tp then. Let's take the EUR/USD, if you were long around 1.60... I'll doubt we see that level again so soon.

Of course you would not toss a coin all the time.
Take a good system and your expectancy will increase even more.
Show me something that will give you the same return with even less risk.

I don't mean coin tossing. Around 1.60 we still had a clear uptrend... But I know what you mean. Maybe I'll just try that with some game money. Going long now in the EUR/USD or AUD/USD might be a "no brainer" using a safety zone of several thousand pips.

Maybe one should never open a new long at a fresh alltime high.
If you are right in the middel chances are pretty high that you will get
taken out by volatility. I used the LFH Trading Simulator 3 has been posted around here somewhere. Just make sure to increase your position every time you win. I've made a simple spreadsheet for that. Your goal is to hit 250 homeruns before your long get caught up at 1.60
A ranging pair might be even better.