I really do not know why you beginners investigate Martingale. As you already said, for Martingale to work you would need unlimited capital.
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Very good post! None of us have unlimited capital and never will. I just had briefly looked into Martingale awhile back and realized it wasn't worth my time investigating.
Thanks for sharing. This would not work with US brokers as if I have a "Buy" position as per your pdf, and if starts to go down before reaching TP, my "Sell Stop" will Not be triggered at 1.9800 as I still also have a "Buy" which will close at SL of 1.9770. This is because US brokers don't allow a buy and sell position at the same time.
Can u clarify or am I understanding this incorrectly?
What if there is no trend at the time you're trying to "take an order in the direction of the trend"? Then you would keep switching sides at ever increasing lot size in a desperate attempt to cover your previous losses. I would think it would be less painful if you just accept the first loss and move on. But maybe that's just me.
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There will for sure be a point where you have to stop (unless you have a really large capital). However, you will be stuck between sides because you entered:
(1) in the very wrong time
(2) in the wrong direction
imagine if your first order was the opposite of the order where you have entered. all this ranging between sides would have been at your benift 30+ 30+ 30+ 30+....
This is why i have mentioned that i try to enter both sides. so that i can profit from both directions. What i am still working on is how to increase the lot for the other order.
Example: i start both directions with 0.01 Lot. one has been ranging and entered the 3rd order of martingale, while the other had gave profit 3 times. now for the profitable order, we should enter and start at a higher Lot "0.03 for example) to cover your margin.
Thanks for sharing. This would not work with US brokers as if I have a "Buy" position as per your pdf, and if starts to go down before reaching TP, my "Sell Stop" will Not be triggered at 1.9800 as I still also have a "Buy" which will close at SL of 1.9770. This is because US brokers don't allow a buy and sell position at the same time.
Can u clarify or am I understanding this incorrectly?
Thanks again
ff2k
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ff2k,
you missed 2 points. I have mentioned in the original post that we will NOT deal with the system as mentioned in the PDF. there will be NO stop loss or take profit due to the spread. all your orders (both buy & sell) should be closed once your BASKET of orders reach a profit equivalent to 25-30 pips.
As for US brokers, this might be the case but there are alot of other brokers who allow hedging
if u trying this system the 26 june 2012. What is the result ?
S.T
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Sharteel,
I am not home now and will check this once im there. In all ways and whatever scenario was there on that day, it has happened because we entered in the very wrong time and the wrong direction. the scenario would have been extremely benifitable if you have entered it on the opposite direction.
When we work on baskets, multiple pairs and gain alot of pips, then i dont mind closing an order at a specific order of the martingale. i may lose the order, but my overall profit from multiple pair wins.
you missed 2 points. I have mentioned in the original post that we will NOT deal with the system as mentioned in the PDF. there will be NO stop loss or take profit due to the spread. all your orders (both buy & sell) should be closed once your BASKET of orders reach a profit equivalent to 25-30 pips.
As for US brokers, this might be the case but there are alot of other brokers who allow hedging
