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What do you think about this martingale strategy?

  • #41
  • Feb 9, 2012 4:38am Feb 9, 2012 4:38am
Quoting Jure86
Do you have any idea how to avoid this?
But I think this not happens often and maybe it will go.
Even if this doesn't happen often, the very 1st time this happens you will lose all your money (margin call).

There's no way to predict when this will happen.

The best way to avoid this is to stay away from martingale of any kind.
MT4/MT5 EAs/Indicators/Alerts coder
  • #42
  • Feb 9, 2012 4:49am Feb 9, 2012 4:49am
Quoting FerruFx
Even if this doesn't happen often, the very 1st time this happens you will lose all your money (margin call).

There's no way to predict when this will happen.

The best way to avoid this is to stay away from martingale of any kind.
OK, as it looks I'll have to stay at manual strategy I have. It is not holy grail but I make constant profits (not big but it is profitable).
What I was trying to do is some EA based system that will trade automaticaly, but it looks like this one is not good idea.
Thanks for all comments! Many pips to all!
  • #43
  • Feb 9, 2012 4:50am Feb 9, 2012 4:50am
Quoting Taxi Driver
... as probably system blows every now and then, even if itīs once a year ...
Jure86,

If you definitively want to try this strategy on Live account, try it in the best way :

1/ According to the fact that margin call will come by cycles (every now and then)

2/ Trade it strictly with your rules on a demo account until the margin call come

3/ Then start on Live account hoping you have enough time to make profit

4/ Once you reach a reasonable global profit, withdraw it

5/ Then restart on demo until the next crash

and so on ...
MT4/MT5 EAs/Indicators/Alerts coder
  • #44
  • Feb 9, 2012 4:54am Feb 9, 2012 4:54am
Quoting FerruFx
Jure86,

If you definitively want to try this strategy on Live account, try it in the best way :

1/ According to the fact that margin call will come by cycles (every now and then)

2/ Trade it strictly with your rules on a demo account until the margin call come

3/ Then start on Live account hoping you have enough time to make profit

4/ Once you reach a reasonable global profit, withdraw it

5/ Then restart on demo until the next crash

and so on ...
I'm not going to do this for any price, as was looking for other people thoughts, comments, ideas,... I'm really happy to get some.
Maybe this idea with cycles is worth trying. Thanks again.!
  • #45
  • Feb 9, 2012 5:03am Feb 9, 2012 5:03am
Well, martingale will blow if u dont have HUGE acc trading tiny-tiny lots, but it can work if you donīt collect money on your account, risking it all.

One guy using martingale:

http://www.myfxbook.com/members/Kaip...xsashka/120431

He constantly takes out all the profit, balance is ab same amount he deposited.

He made opened trades and history private, but it was opened before and I followed his trades to analyse the system, he is opening buy-sell same time and using pullbacks = he doubles/tripples losing pos until it gives enough pullback to close in profit.
So good in ranging market, big DD if there is a strong trend. But market ranges ... what? 70% of time?

Something like this:

Attached Image
F_ck your analysis, I know exactly where the market will go. To the right.
  • #46
  • Feb 9, 2012 5:50am Feb 9, 2012 5:50am
Jure is there a reason why you did not answer my point? I would be really interested in what you think about it but if you want to ignore the point I mentioned, you can just say that so I dont check back to this thread.
  • #47
  • Feb 9, 2012 6:01am Feb 9, 2012 6:01am
Quoting csabz90
Jure is there a reason why you did not answer my point? I would be really interested in what you think about it but if you want to ignore the point I mentioned, you can just say that so I dont check back to this thread.
Sorry, here is my answer.
I'm trying to write some automatical and mathematical based system. There is actually no strategy, with this I mean no signal when to buy or sell. I would like to do something that will save me if my opened order gets in loss. With this it is not important if I open buy or sell, what is important is price action. So I can talk about 50% win trades or something like that.
  • #48
  • Feb 9, 2012 6:06am Feb 9, 2012 6:06am
Quoting Jure86
Sorry, here is my answer.
I'm trying to write some automatical and mathematical based system. There is actually no strategy, with this I mean no signal when to buy or sell. I would like to do something that will save me if my opened order gets in loss. With this it is not important if I open buy or sell, what is important is price action. So I can talk about 50% win trades or something like that.

I see. Thank you for your thoughts and good luck to you!
  • #49
  • Edited 1:36pm Feb 9, 2012 1:23pm | Edited 1:36pm
That is what your strategy des
I don't see the way to make it profitable.
Attached File(s)
File Type: mq4 MartinWave.mq4   3 KB | 382 downloads
  • #50
  • Feb 11, 2012 4:10am Feb 11, 2012 4:10am
Quoting joancb
That is what your strategy des
I don't see the way to make it profitable.
It does not trade as it should with this strategy.
  • #51
  • Feb 11, 2012 5:38am Feb 11, 2012 5:38am
Quoting Jure86
It does not trade as it should with this strategy.
It does exactly the same.
If you still think it does not, be more specific.
Attached Image (click to enlarge)
Click to Enlarge Name: Captura.JPG Size: 124 KB
  • #52
  • Feb 11, 2012 6:34am Feb 11, 2012 6:34am
obviously this strategy keeps buying/selling in the range until the pair finds its direction for the day.

instead of spiralling out of control with the ever increasing lot size on a ranging day when you probably shouldn`t have a trade on anyway what about the following:

determine your favourite lot size you would like to have on when the pair takes off in one direction.

say you think 0.2 lot would be the way to go and you just keep your total position at 0.2 lot so
buy 0.2, sell 0.4, buy 0.4, sell 0.4, buy 0.4, sell 0.4, buy 0.4 and away she goes with a 0.2 lot.

you could also set the price you buy and sell at just beyond the initial range
ie e/u range last hour 1.3055/1.3080, set your buy price at 1.3085 and sell at 1.3050.

dont think there is a need to go 5 pip higher/lower every time, but keep buying at 1.3085 and selling at 1.3050.
  • #53
  • Feb 11, 2012 7:31am Feb 11, 2012 7:31am
Quoting yonnie
dont think there is a need to go 5 pip higher/lower every time, but keep buying at 1.3085 and selling at 1.3050.
Not good idea I think because market is in range about 70% or somethink like that.
  • #54
  • Feb 11, 2012 7:50am Feb 11, 2012 7:50am
Quoting Jure86
Not good idea I think because market is in range about 70% or somethink like that.
A range is a range.

As told earlier in this thread, doesn't matter if the range is flat or increasing (like your waves), the martingale will end by a margin call if the trend doesn't start before the lot size become too big for your account.
MT4/MT5 EAs/Indicators/Alerts coder
  • #55
  • Feb 11, 2012 12:00pm Feb 11, 2012 12:00pm
[quote=Jure86;5376600]Not good idea I think because market is in range about 70% or somethink like that.[/quote/

yes maybe so but that is why we keep buying the same quantity after the initial order.

price will have to go higher and/or lower that day because there is also that daily range to fulfill.

in my example we buy/sell at 1.3085 and 1.3050: difference is 35 pips.

say the daily average true range is 120 pips, then we have 85 pips to play with.
one day 1.3085 might be the high of the day and price goes down to 1.2965
another day that high could be 1.3150 and the low 1.3030.

if you set your TP at 50 pips (or 45, 40,35 etc.) above your buy and 50 pips below your sell, I bet you that TP will be hit quite often.

the only floating loss you could have is if price comes back between 1.3050 and 1.3085 at the end of the day without hitting your TP.
and so what, you just might take that little loss if you had a lot of 0.4 orders filled that day or leave your position for the next day if your margin can handle it.

sure way to profit
  • #56
  • Feb 11, 2012 3:25pm Feb 11, 2012 3:25pm
I am developing systems for quite some time now and of course I looked at martingale systems too.
If you have a floating loss of 0.4 sure this is no problem, but what happen if you are wrong 3 more times?
Then you have a floating loss position of 3.2 pips. Martingale doesn't work in the long run. And the market will have a time where it hits your orders but doesn't hit your SL. It happens more often than you think. I have hundreds of hours of coding in such strategies and it just is not worth it.

Martingale is a problem but how about Antimartingale? Double your Order when you win.
  • #57
  • Feb 11, 2012 5:29pm Feb 11, 2012 5:29pm
hi kilian.

I think you did not get my example.

if price comes back between 1.3085 and 1.3050 and you used quite a bit of margin, you can elect to take the loss, which would be on average 17.5 pips + spread on a 0.2 lot.
not bad if your potential profit is 50 pips.

on the other hand if your margin is still safe, you can start the next day with the 0.2 lot position you have, so you dont close out for a loss.
after a time you have the range of the new day mapped out and buy/sell 5 pips above and below the range.

if the last trade yesterday was a buy, today you start with a 0.4 lot sell
@ 5 pips below the range.

if price goes up, you do nothing because you already have your 0.2 buy position from yesterday.

so there dont have to be 4 losses in a row.

and I`m not martingaling into positions, but always an initial position and after that always twice the initial position, which will cancel the earlier trade and get you in the new direction with a 0.2 lot position.

just tell me if I`m not clear
  • #58
  • Feb 11, 2012 6:21pm Feb 11, 2012 6:21pm
Quoting Kilian19
I am developing systems for quite some time now and of course I looked at martingale systems too. ... and it just is not worth it.
I can't agree more. I've developped so many me too ... and the results are all the same at the end.

Quoting Kilian19
Martingale is a problem but how about Antimartingale? Double your Order when you win.
In the long run, it won't be profitable. This is the same as the roulette. Double after a win or a loss ... the probability to have the same color or not is the same. The ball doesn't have the memory of the last spin.
MT4/MT5 EAs/Indicators/Alerts coder
  • #59
  • Edited 8:35pm Feb 11, 2012 8:23pm | Edited 8:35pm
tomorrow I will start with my version and I`ll let yous know how it goes.

my choice is eur/usd having a low spread and high 10-day ATR of 136.

probably start with a 0.25 lot and do the opposite 0.5 lot when price goes against me.
no demo - real money

demo for beginners though!

wish me luck
  • #60
  • Feb 11, 2012 9:22pm Feb 11, 2012 9:22pm
I think this strategy is doomed for failure. In fact I know it is doomed for failure. Learn how to trade instead of gambling.
Master your Mind,,,Master the Market
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