What do you think about this martingale strategy? | Forex Factory

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What do you think about this martingale strategy?

  • #1
  • First Post: Feb 8, 2012 8:01am Feb 8, 2012 8:01am
Hello!
I would like to know what you mean about this strategy.

We open trade (buy or sell it is not important) without TP and SL. Then if we get to profit we previous chose we close order if it gets to loss we previous chose we open opposite trade with bigger lots. Then if second and first trade get to profit we previous chose we close orders if second gets to loss we previous chose we open third trade with bigger lots opposite to second,... and so on.
What I'm thinking about is that price will sooner or later goes in some direction.
Thanks for your comment and have a look at picture for more information
Attached Image (click to enlarge)
Click to Enlarge Name: trade1.png Size: 28 KB
  • #2
  • Feb 8, 2012 8:44am Feb 8, 2012 8:44am
I suggest you look at any of the Martingale threads to see why this won't work in the long run
  • #3
  • Feb 8, 2012 8:54am Feb 8, 2012 8:54am
Thanks for comment! Can you tell your view why it should not work?
  • #4
  • Feb 8, 2012 9:01am Feb 8, 2012 9:01am
Quoting Jure86
Thanks for comment! Can you tell your view why it should not work?
It is very simple : a long range period will put you in a too long martingale (too big lot size) to be handled by your account ... You will have a margin call and lose all your money.
MT4/MT5 EAs/Indicators/Alerts coder
  • #5
  • Feb 8, 2012 9:09am Feb 8, 2012 9:09am
because sooner or later you will get out of free margin to open a new trade

0.01...0.02....0.04...0.08...0.16....0.32....0.64....1.28...2.56....5.12...10.24...20.48...40.92....you will be here sooner or later
  • #6
  • Feb 8, 2012 9:09am Feb 8, 2012 9:09am
Quoting FerruFx
It is very simple : a long range period will put you in a too long martingale (too big lot size) to be handled by your account ... You will have a margin call and lose all your money.
Actually range will not blow account because every buy order is higher then previous buy and every sell is lower then previous sell.
Problem will be when price will make higher high and lower low many times (picture).
Attached Image (click to enlarge)
Click to Enlarge Name: trade2.png Size: 10 KB
  • #7
  • Feb 8, 2012 9:23am Feb 8, 2012 9:23am
Quoting Jure86
Actually range will not blow account because every buy order is higher then previous buy and every sell is lower then previous sell.
Problem will be when price will make higher high and lower low many times (picture).
Great picture ... but how long can you afford an increase of these waves if your trades are all at the peaks ?
MT4/MT5 EAs/Indicators/Alerts coder
  • #8
  • Feb 8, 2012 9:26am Feb 8, 2012 9:26am
Quoting FerruFx
Great picture ... but how long can you afford an increase of these waves if your trades are all at the peaks ?
Not long, but what is the biggest number of this peaks in the past? I can find time when this happend many times.
  • #9
  • Feb 8, 2012 9:28am Feb 8, 2012 9:28am
Quoting Jure86
Not long, but what is the biggest number of this peaks in the past? I can find time when this happend many times.
It just need to happen once to be done
  • #10
  • Feb 8, 2012 9:34am Feb 8, 2012 9:34am
Quoting joancb
It just need to happen once to be done
I agree. Duplicate lots is not good idea, but if we do this only 5, 6 times I should be ok. Loss is not so big and sometimes we have to close loss trade...
Don't get me wrong I really appreciate all comments but I think it's worth trying.
  • #11
  • Feb 8, 2012 9:34am Feb 8, 2012 9:34am
Quoting Jure86
I can find time when this happend many times.
Fine ... so your account is dead.
MT4/MT5 EAs/Indicators/Alerts coder
  • #12
  • Feb 8, 2012 9:38am Feb 8, 2012 9:38am
Quoting Jure86
I think it's worth trying.
So many of us tried this kind of strategy since years that you may just try it on demo.

But if you stick to your rules, this won't take long to blow your demo account ...
MT4/MT5 EAs/Indicators/Alerts coder
  • #13
  • Feb 8, 2012 9:39am Feb 8, 2012 9:39am
Quoting FerruFx
Fine ... so your account is dead.
Well it's not and I really hope this for your also.
  • #14
  • Feb 8, 2012 9:41am Feb 8, 2012 9:41am
Are you talking about a hedging strategy here? The losing buy trades in your first example are still open?
  • #15
  • Feb 8, 2012 9:43am Feb 8, 2012 9:43am
Quoting Andy B
Are you talking about a hedging strategy here? The losing buy trades in your first example are still open?
Yes, all orders are opened until profit is reached (if it is...).
  • #16
  • Feb 8, 2012 9:50am Feb 8, 2012 9:50am
Quoting FerruFx
So many of us tried this kind of strategy since years that you may just try it on demo.

But if you stick to your rules, this won't take long to blow your demo account ...
About my "demo" account.
Attached Image (click to enlarge)
Click to Enlarge Name: nice2a.png Size: 151 KB
  • #17
  • Feb 8, 2012 10:01am Feb 8, 2012 10:01am
Quoting Jure86
About my "demo" account.
If your progression starts at 0.10, you won't afford a long martingale. About 8 orders ...

You can find on any chart / any timeframe many range periods with far more than 8 waves ... Once you start in one, your account is blown before the end of this range period.
MT4/MT5 EAs/Indicators/Alerts coder
  • #18
  • Feb 8, 2012 10:03am Feb 8, 2012 10:03am
This has more chance of working than a true Martingale as it's not strictly necessary to double the lots each time, a smaller factor than 2 can be used with a wider TP
  • #19
  • Feb 8, 2012 10:07am Feb 8, 2012 10:07am
Quoting Andy B
... it's not strictly necessary to double the lots each time ...
He's doubling the lot size in his rules.
MT4/MT5 EAs/Indicators/Alerts coder
  • #20
  • Feb 8, 2012 11:37am Feb 8, 2012 11:37am
Quoting FerruFx
He's doubling the lot size in his rules.
It is just example. As I said lots multiplication, pips difference and profit are user defined.
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