martingale strategy

I came across this excellent Expert Advisor by “Alejando Galindo” whilst browsing the web. I have tried this system on multiple accounts and on multiple computers.

99% of the time I consistently make serious money, but the other 1% bankrupts my account!

I would like to trade GBPUSD on the 1 minute chart and backtest over a full year before trading live!

Can anyone advise me how to make this expert advisor work without going bankrupt!

Now why do you have to go and give your own post 5 stars?

And... the results you're seeing stink of martingale to me.

Backtesting Graph returning £27,552 (275%) in 5 weeks!

...and the StrategyTester

Equity curve is waaaay too smooth. It's either using martingale (my first guess) or it's trading intrabar on the one-minute chart which tends to generate unrealistic backtesting results.

Edit: Yup, looking at the strategy tester results seals it. It's using martingale.

Hi Tesla

What does Martingale mean?

Regards
Darren

Martingale is a strategy where you double your "bet" or exposure with every loss, so that the next win will cover all previous losses. Your exposure grows quickly and you can get hurt badly.

I would highly suggest reading about "Martingale" and "Gambler's Debt" before considering using an EA which makes use of it so you understand your risk. Google will return many valid results on both those terms.

I suggest you do a quick search of the forums...PLENTY of info there.

Darrenshome,

Trade with 1:1 leverage.

FJ

From what I've seen as far as Eas go.
Those making $3000 to $10000 a year on 1 lot are considered to be very successful and tend to stay a long time on these threads. Ones claiming 300% in 2 months come and go avery day.

This strategy is based on probability theory and if your pockets are deep enough, it has a near 100% success rate.This strategy was most commonly practiced in the gambling halls of Las Vegas casinos and is the main reason why casinos now have betting minimums and maximums and why the roulette wheel has two green markers (0 and 00) in addition to the odd or even bets.

The introduction of the 0 and 00 on the roulette wheel was used to break the mechanics of the martingale by giving the game more than two possible outcomes other than the odd vs. even or red vs. black. This made the long-run profit expectancy of using the martingale in roulette negative and thus destroyed any incentive for using it.

I found this very good exlaination of the theory.

Suppose that we had a coin and engaged in a betting game of either head or tails with a starting wager of $1. There is an equal probability that the coin will land on a head or tails and each flip is independent, meaning that the previous flip does not impact the outcome of the next flip. As long as you stick with the same directional view each time and you double your bet on each flip of the coin you would eventually, given an infinite amount of money, see the coin land on heads and regain all of your losses plus $1. The strategy is based on the premise that only one trade is needed to turn your account around.

The model quality of backtest show 24.93% accuracy. It means that the results are wrong. To show a little real results you need at least 90% model quality.
Search at FF and you'll find how to do it.
Hope i could help.