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Reverse Martingale strategy

  • #61
  • Jun 17, 2015 1:41am Jun 17, 2015 1:41am
Quoting MathTrader7
{quote} http://www.forexfactory.com/attachme...2&d=1306431191 http://www.forexfactory.com/showthread.php?t=235750 https://www.mql5.com/en/code/10655 https://www.mql5.com/en/code/12223 https://www.mql5.com/en/code/10886 https://www.mql5.com/en/code/10657 http://www.forex-tsd.com/martingale-...ingale-ea.html http://www.forex-tsd.com/martingale-...ingale-ea.html ....
i tried those ea, some of them dont work, and some are other martingale strategy, not the one i asked about. this one here is the closest http://www.forex-tsd.com/martingale-...ingale-ea.html but it doesnt work. i would really appreciate if you can code this ea, i think it has potential. you said you tried with 5 pips gap? well thats too little, i say like 20 pips gap or more, i will test if i have the ea.
  • #62
  • Jun 18, 2015 6:32am Jun 18, 2015 6:32am
Quoting techlover
{quote} i have changed the slippage to 10 pips as it was NEWS event just checked the old version its working well the new version is having problem , i even checked it now wn the market is slow , same again the pending are closing instantly as soon as we place the order

The sad reality of TRADING NEWS + USING MARTINGALE is clearly shown in the youtube vdieo below.
Inserted Video


Basically, their is an unlimited amount of times a currency can touch a specific price within an amount of time, as the brokers have the ability of halting their server feed. By doing so, depending on how the EA was created, your EA may automatically shut off when the broker loses feed, or it may send a glitch through your system. You may also want to notice that widening of the spread during high impact news, can cause orders to open up, which not only would throw a big time wringle in your martingale strategy, but it isn't something (knowing the ask price of any given currency at any particular time in the past) which you can backtest. That's correct, if you are trading high impact news, and you backtest, the backtest by default is faulty as you have no way of knowing which was the ask price. On another note their is a little code you can put into your EA in order to counter that issue.

So note to all, trading High impact news is exactly like playing Russian roulette. Trading high impact news, with martingale is like playing russian roulette with a 95% loaded weapon.... If you keep pulling the trigger, you will end up blowing your brains out!

Note: How the broker on the left glitches, while the broker on the right continues trading without one hitch. So, what would work with one broker, won't work with another.
Men lie, women lie, the numbers don't.
  • #63
  • Jun 18, 2015 10:15am Jun 18, 2015 10:15am
Quoting BeHonest
{quote} The sad reality of TRADING NEWS + USING MARTINGALE is clearly shown in the youtube vdieo below. https://www.youtube.com/watch?v=J-OsrdneI4Q Basically, their is an unlimited amount of times a currency can touch a specific price within an amount of time, as the brokers have the ability of halting their server feed. By doing so, depending on how the EA was created, your EA may automatically shut off when the broker loses feed, or it may send a glitch through your system. You may also want to notice that widening of the spread during...
this is a million dollar post!!!!!!!!!!!!!!!!!! its deep! lots of gold nuggets here!
I am what Many Dream to be but only a few can achieve, im a part of the 1%
  • #64
  • Jun 18, 2015 10:21am Jun 18, 2015 10:21am
Quoting Soros
{quote} this is a million dollar post!!!!!!!!!!!!!!!!!! its deep! lots of gold nuggets here!
I am uploading another video which supports my claim. I even risked my own account in order to prove my point. It should be uploaded very shortly.
Men lie, women lie, the numbers don't.
  • #65
  • Jun 18, 2015 11:16am Jun 18, 2015 11:16am
Quoting Soros
{quote} this is a million dollar post!!!!!!!!!!!!!!!!!! its deep! lots of gold nuggets here!
Here is the other video as promised.

Before viewing the video please note what the EA does to begin with.

The dotted line is the price in which I will enter EU to the buy side (BUY STOP) only if the bid touches that price..... In other words, since if a person wants to long, they can only do so on the ask price, I programmed the EA to only trigger the BUY STOP on the ASK price ONLY if the bid touches the price first. We clearly see that once the news was released the broker not only widen the spread, but they caused their servers to lag out. By causing the lag, I was not able to enter, exit , or modify any order within the broker. I even went as far as to record the next 15 mins of the same session, in which clearly ICMARKETS didn't have any orders process at all.

For the most part ICMARKETS is a very good broker, but once high impact news hits, they hammer the spreads, and lag the system thus making REVERSE MARTINGALE STRATEGY impossible.

Inserted Video
Men lie, women lie, the numbers don't.
  • #66
  • Jun 18, 2015 12:03pm Jun 18, 2015 12:03pm
makes sense
I am what Many Dream to be but only a few can achieve, im a part of the 1%
  • #67
  • Oct 4, 2015 10:42am Oct 4, 2015 10:42am
Here is Version 1.30 of the EA that implements a take profit input (in net profit money) to close all the open positions.
Attached File(s)
File Type: ex4 MathTrader7_RevMartingaleEA.ex4   141 KB | 808 downloads
Trading is the hardest way to make easy money...
  • #68
  • Edited Oct 5, 2015 3:02am Oct 4, 2015 12:10pm | Edited Oct 5, 2015 3:02am
Interesting, because the Reverse Martingale in my imagination it should work in different way.

Martingale:

  1. open a position of 0.1 lot for 20 pip SL / TP.
  2. If you loose then open a position of previous trade x2 size, but the same TP/SL - the direction can be different, hence 0.2 size
  3. size = 0.4
  4. size = 0.8
  5. size = 1.6 lot
  6. size = 3.2 lot
  7. 6.4
  8. 12.8 lot
  9. 25.4 lot
  10. 50.8 lot


So the Reverse Martingale should be:
Open an 50.8 lot, if you lose open 25.4 lot if you loose again open 12.8 lot.
If you win then again start with 50.8 lot

In my imagination this is the Reverse Martingale.

In my opinion:
- that is correct to start with a bit higher size ( calculate the risk on short time frame)
- if you lose, that's it, accept it you were wrong: go watch girls on bikini on that day, do not over trade!
- if you win: The hard part is here. You need to close some trades in win to be able to pay the losses. But f your winners aren't running enough then can become the system a losing one! So if is a win: try to analyze with 1 more higher time frame. Maybe there is a valid entry there! This way I have seen entries with 10:1 or 20:1 leverage and kept for 6 weeks . 500 pip profit with 10-20 pip SL Those are rare cases, but they pay the losses. Maybe after news release, which change the trend?


Your presented method it was used already, search for " $100 to $10,000" It is working only on major news release
Try to use at a MM to not have lags, slippage, Oanda is not so good for this because it will widen the spread, maybe FXCM or who knows... anyone who promise fixed spread and you can believe it as it wouldn't delete your winner trades and would allow to withdraw money from they!
All ECN has a bit wider spread (5-13) about slippage a lot increased: 10 pip is normal, but some give even 20!

I want to buy PATIENCE
  • #69
  • Oct 28, 2015 8:27pm Oct 28, 2015 8:27pm
Quoting MathTrader7
Hi Techlover! :-) I've heard about a similar strategy to this idea. The power of this kind of positioning is that it results in a high reward to risk ratio. I may develop an EA to backtest it.
Hi MathTrader7,

For the last few days my head has been stuck in a calculation regarding a reverse martingale type EA. Your EA here is close to what I have been thinking about. But differs somewhat as well in as much as it is fully automated using two simple trend indicators HAS and MACD to get into the trade. It has no STOP LOSS except for the first trade and then a TRAILING STOP for all subsequent trades. Also instead of a martingale x2 increment on the next trade, I prefer to use a fib sequence, ie: 0.01 (opening trade), 0.01 ( 2nd ) 0.02, 0.03, 0.05, 0.08 etc. to scale up the trade. Plus MM. Once TS is hit all trades close and the EA looks for another opening position.

The reason for fully automated is that due to my time zone most of the price action happens while I'm sleeping!

The reason for a trail stop and fib increments is as the EA gets deeper into the steps/grid the more the EA is in profit before it hits the TS.

Any chance this can be coded?

Thanks in advance. H7
  • #70
  • Oct 29, 2015 5:31am Oct 29, 2015 5:31am
Quoting Hamish7
{quote} Hi MathTrader7, For the last few days my head has been stuck in a calculation regarding a reverse martingale type EA. Your EA here is close to what I have been thinking about. But differs somewhat as well in as much as it is fully automated using two simple trend indicators HAS and MACD to get into the trade. It has no STOP LOSS except for the first trade and then a TRAILING STOP for all subsequent trades. Also instead of a martingale x2 increment on the next trade, I prefer to use a fib sequence, ie: 0.01 (opening trade), 0.01 ( 2nd ) 0.02,...
Hi Hamish7,

Let's first automate the current version of the EA to see how it would work. I'll post the next version of the EA in this forum.

Best,
Math
Trading is the hardest way to make easy money...
  • #71
  • Oct 29, 2015 6:00am Oct 29, 2015 6:00am
Quoting MathTrader7
{quote} Hi Hamish7, Let's first automate the current version of the EA to see how it would work. I'll post the next version of the EA in this forum. Best, Math
Thanks Math look forward to it.

Cheers
  • #72
  • Edited 4:53pm Oct 29, 2015 12:45pm | Edited 4:53pm
Here is Version 1.5 of the EA that automatically opens positions based on the Heiken Ashi Smoothed indicator, and time of trade filter. You need to copy the attached indicator in <MQL4\Indicators> folder.

Edit: Uploaded Version 1.55 which solves a bug in the EA.
Attached File(s)
File Type: ex4 Heiken_Ashi_Smoothed.ex4   10 KB | 734 downloads
File Type: ex4 MathTrader7_RevMartingaleEA.ex4   139 KB | 914 downloads
Trading is the hardest way to make easy money...
  • #73
  • Oct 29, 2015 3:43pm Oct 29, 2015 3:43pm
Quoting MathTrader7
Here is Version 1.5 of the EA that automatically opens positions based on the Heiken Ashi Smoothed indicator, and time of trade filter. You need to copy the attached indicator in <MQL4\Indicators> folder. {file} {file}
Hi Math,

Only taking sell trades on back test. It also misses the big trends even when time filter has been turned off and it generally loses on the second trade. Needs something like a dynamic trailing stop so it always stops in profit or break even, once second trade is hit.

Is there a input for distance before second trade is taken?

Will do more testing once you have a look at the sell trade issue.
  • #74
  • Oct 29, 2015 4:48pm Oct 29, 2015 4:48pm
Quoting Hamish7
{quote} Hi Math, Only taking sell trades on back test. It also misses the big trends even when time filter has been turned off and it generally loses on the second trade. Needs something like a dynamic trailing stop so it always stops in profit or break even, once second trade is hit. Is there a input for distance before second trade is taken? Will do more testing once you have a look at the sell trade issue.
Thanks for reporting the bug! :-)
I uploaded a new version to above post which solves the problem.
Trading is the hardest way to make easy money...
  • #75
  • Oct 29, 2015 5:50pm Oct 29, 2015 5:50pm
That's just the simple addition of positions. And doubling positions is hight risk/hight reward. If movement is impulsive and too fast to react or you are too greedy, you would simply lose it all. I'd say that standard Martingale is more reliable, than this one. Thought i would not recomand using both.
  • #76
  • Oct 29, 2015 6:58pm Oct 29, 2015 6:58pm
If it is not strong one-direction movement, I would not even bother trying it. To much of a gamble for it to be a thing called "strategy".
  • #77
  • Edited 7:30pm Oct 29, 2015 7:06pm | Edited 7:30pm
Quoting MathTrader7
{quote} Thanks for reporting the bug! :-) I uploaded a new version to above post which solves the problem.
Hi Math,

Okay buy sell both working. The graph looks like I would expect it to, steady downward slope with up spikes. But eventually it will drain to zero. Can I suggest a couple of things since to me this is just a math problem, and you are the MathTrader, you will understand. And since we are sticking with the Martingale trade progression. First and second trade need to be of the same lot size, so 1, 1, 2, 4, 8, etc that way all trades already taken equal the new trade to be taken. The sum of all trades equals the new trade, otherwise it is always out of balance, which just mean the Stop Loss or Trailing stop must stay less than half way between grid levels + spread + commish + swap! Fine if grid levels are large, but the EA will never work the way we want it to. That is to take trades, double up on trade sizes and cash in big.

My suggestion for this baby to work are this.

1. Lot progression as mentioned above.
2. Adjustable grid size depending on pair.
3. Trailing stop between first and second trade so that if the second trade is taken and reverses then break even or a tiny profit is taken. This will be true for all subsequent trades. So grid size / 2 + spread + a bit for sundries.
4. Also I noticed that the HAS still shows a trend when on a side ways projection so it will still take trades when there is no trend! To avoid this a simple MA with period 13 so buy trade is only taken when last candle stick is above the SMA line or a sell when below the SMA line. The SL could also be set just below or above the SMA to reduce the size of the loosing trade - which should only be the first trade that ever looses.

However like a true Martingale EA reversed. This will slowly loose money and one day it may win big - one day. Maybe only good for Non-Farm!!! That is when a Martingale EA usually fails!

Anyways that is why I like my idea of Fibonacci progression for lot size, as you progress through the grid you have more trade volume behind you as you take the next trade, which means you have more room to move with the trailing stop, dynamic trailing stop or equity manager. Which ultimately means you can successfully get to the next level and hopefully to the big pay day more regularly. In Theory!!!!

Here's my Graph for May 2015 GBPUSD 90% tick quality.
Attached Image (click to enlarge)
Click to Enlarge Name: TesterGraph.gif Size: 13 KB
  • #78
  • Sep 9, 2016 7:08pm Sep 9, 2016 7:08pm

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  • #79
  • Sep 12, 2016 3:06am Sep 12, 2016 3:06am
Quoting MathTrader7
Here is Version 1.5 of the EA that automatically opens positions based on the Heiken Ashi Smoothed indicator, and time of trade filter. You need to copy the attached indicator in <MQL4\Indicators> folder. Edit: Uploaded Version 1.55 which solves a bug in the EA. {file} {file}
MathTrader you are the best I thought I will never get this ea. Thanks for the great work. I have been looking for this ea for long time,and now here it is. the first manual ea for live trading works fine but this automated type is not clear with me. my strategy is fixed and shown on the attached picture. I tried to set the ea to do exactly the same but it hasn't open any trade for more than 5 hours. but the first ea for live does exactly that with this settings. I attached the indicator,to the chart,and then the ea with the settings you see on ith photo. is there any modification needed?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 125 KB
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  • #80
  • Sep 12, 2016 3:11am Sep 12, 2016 3:11am
Quoting vikasexy
{quote} MathTrader you are the best I thought I will never get this ea. Thanks for the great work. I have been looking for this ea for long time,and now here it is. the first manual ea for live trading works fine but this automated type is not clear with me. my strategy is fixed and shown on the attached picture. I tried to set the ea to do exactly the same but it hasn't open any trade for more than 5 hours. but the first ea for live does exactly that with this settings. I attached the indicator,to the chart,and then the ea with the settings you...
the second picture should be replaced with this
Attached Image (click to enlarge)
Click to Enlarge Name: the automated ea.png Size: 93 KB
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