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Martingale, Anti-martingale, and Compounding

  • #21
  • Dec 22, 2015 10:55am Dec 22, 2015 10:55am
martingale only to help if you floating with a particular blend, it can help you stronger margins in foating with profit-making piecemeal
  • #22
  • Dec 22, 2015 2:53pm Dec 22, 2015 2:53pm
I made an app for experimenting with martingale, anti-martingale, soft martingale and study the effect various variants of these methods would have on your gains.
You can play around with it here:
http://mt4-forex-ea.com/online-tools...ent-simulator/
  • #23
  • Dec 22, 2015 3:45pm Dec 22, 2015 3:45pm
Quoting Gurudeva
{image}
Gurudeva, this strategy lacks power. It wastes a lot of margin. Why? The losing orders are at the far side, while the winners are the near side. And the distance in between the winners and the losers is way too big. It will take me some time to explain this in details. I have one EA doing this. It is a very nice one, but it bounds you to run it at the best times possible. Just before the movements. And that is damn hard to catch.

Your money is at great danger, dude. Why not spend it on a hooker instead...
Maadik Hugiis. IQ 69.
  • #24
  • Dec 23, 2015 4:38am Dec 23, 2015 4:38am
Tell me what you think, please:
An example:

Choice a price level , create a 10 pips box, go short below the box, go long above the box. Take profit 30 pips.
It's a stop and reverse system.
Entry lot
1)0.1 = profit 30
2)0.1= profit 30-10 =20
3)0.1 = profit 30-20 = 10
4)0.1 = profit 30-30 = 0
5)0.15 = profit 45 - 40 = 5
6)0.2 = profit 60 -15-40 = 5
7)0.3 = profit 15
8) and so on....
It's a very light lots increment, you could get also 20 consecutive losses until it reach our take profit, but anyway a certain point you will stop to add position and you will wait the target profit that can be a loss as well...
In the meanwhile we will compound any small profit...
  • #25
  • Dec 23, 2015 5:09am Dec 23, 2015 5:09am
Like tünnel martingale
  • #26
  • Dec 23, 2015 6:52am Dec 23, 2015 6:52am
Quoting Gurudeva
Tell me what you think, please: An example: Choice a price level , create a 10 pips box, go short below the box, go long above the box. Take profit 30 pips. It's a stop and reverse system. Entry lot 1)0.1 = profit 30 2)0.1= profit 30-10 =20 3)0.1 = profit 30-20 = 10 4)0.1 = profit 30-30 = 0 5)0.15 = profit 45 - 40 = 5 6)0.2 = profit 60 -15-40 = 5 7)0.3 = profit 15 8) and so on.... It's a very light lots increment, you could get also 20 consecutive losses until it reach our take profit, but anyway a certain point you will stop to add position and...
http://www.forexfactory.com/showthread.php?t=302007
Solutions ONLY!!!
  • #27
  • Dec 23, 2015 12:00pm Dec 23, 2015 12:00pm
Quoting Gurudeva
Tell me what you think, please: An example: Choice a price level , create a 10 pips box, go short below the box, go long above the box. Take profit 30 pips. It's a stop and reverse system. Entry lot 1)0.1 = profit 30 2)0.1= profit 30-10 =20 3)0.1 = profit 30-20 = 10 ...
Gurudeva, here is what exactly will happen to you. The idea is good, BUT, the delussion pops out due to a poor math made by the stragiests... For short periods of time, that idea will work. 1-2-3 months maybe. You will be very excited, making money. Lots of money. One day, you will see how your account is no more. That is what is going to happen with your idea. I do have an ea that is doing exactly that. So, I am speaking only experience based.

What you can do?

1. Set a total SL target. It surely will get hit 2-3-4 times a year. Per pair. To avoid the inevitable crash. You can still be profitable. Yet, getting out of the danger with that strategy is a lot harder than you might imagine.

2. Trade only the big movement days. Than you will be safe. With this strategy, you have to enter only when they move it big. If you do know how to locate that and never use it outside those days, you are ok. I never managed to locate those days...

3. 10 pips in between both lines is too low. Every month, on every pair, you get 40-50 hits with the 10 pips distance you are asking about. I would suggest 20 as a standard. 20 pips of a distance gets a lot of hits too. But 10 pips is just madness...
Maadik Hugiis. IQ 69.
  • #28
  • Dec 30, 2015 7:00am Dec 30, 2015 7:00am
Is there anybody who tried to mix martingale with compounding?
Remember :
- Martingale is losing on the long period, it will blow your account, but is winning is the short period.
- Compounding is highly winner on the long period .
  • #29
  • Dec 30, 2015 7:01am Dec 30, 2015 7:01am
Quoting MoneyZilla
{quote} Gurudeva, here is what exactly will happen to you. The idea is good, BUT, the delussion pops out due to a poor math made by the stragiests... For short periods of time, that idea will work. 1-2-3 months maybe. You will be very excited, making money. Lots of money. One day, you will see how your account is no more. That is what is going to happen with your idea. I do have an ea that is doing exactly that. So, I am speaking only experience based. What you can do? 1. Set a total SL target. It surely will get hit 2-3-4 times a year. Per pair....
Please before to answer, read carefully the whole thread or at least my first post.
We already know martingale is losing on the long period and it will blow the account.
  • #30
  • Dec 30, 2015 10:41am Dec 30, 2015 10:41am
This is only an example of how we can take advantage of mixing martingale and compounding.
I'm not here to teach anything , just to discuss, to improve , this can be possible only through your help/reviews.
I just want to remind you that all of this is just an example , and what i'm gonna consider is not the whole balance but just a portion, like just a trade.
Our risk is 100 dollars.
We're gonna risk 80 pips( or800) to earn 2 pips(or 20). Our target is to reach 200 consecutives winning trades earning 13082dollars(compounding) or 100 consecutives winning trades earning 1111 dollars.
To do it we have two possibilities:
- You can risk all 80 pips in the same trade anytime earning 2 pips, you will have a very high winning trades probability and obvious you can reach a big consecutive winning trades.
- you can split 80 pips in 3 trades(10-20-40), first trade you will risk 10 pips to earn 2 pips( 20%), if it go wrong you will make the second one risking 20 pips to earn 4 pips( you 're earning only 20% of you risk), if it go still wrong you enter risking 40 pips earning 8 pips( 20%).
That is the classic martingale.
The probability to reach you stop loss is 0.025% , but it will happens and it will blow your money to risk.
But can we do something in the meanwhile? Yes, thruogh the use of compounding we can earn a lot, after50 or 100 or 200 trades.

Please share your ideas to improve this system, here we didn't considered spread or tecnical analyses.
  • #31
  • Jan 2, 2016 8:29pm Jan 2, 2016 8:29pm
Hello Gurudeva and others.

Prior to this, another great thread already discuss this. Does the martingale system really work?. Believe it or not, it is one of the best reference (at least for me) regarding Martingale. In that thread, there are both kind of people. One who advocates martingale, and one who against it.

And this another thread inspires me a lot: Lot size calculator for good money management. It is one of my earliest favorite thread here in FF.

Here is my own modified calculator from the original version in the thread above:

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So, the calculator is self-explanatory. You just need to be disciplined to the rules you create in the calculation. Hope it makes sense.
  • #32
  • Jan 10, 2016 6:38am Jan 10, 2016 6:38am
Quoting Gurudeva
Tell me what you think, please: An example: ...
Here is what will happen depending on your win rate:


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Quoting Gurudeva
risk 80 pips( or800) to earn 2 pips(or 20)
This is what happens to your strategy:
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  • #33
  • Nov 19, 2016 2:22am Nov 19, 2016 2:22am
Hi guys I crated EA which is buying or selling against the trend and automaticaly close all positions on corections. viz pictures

Does anyone knows formula how to count weighted margin and how much im minus after for example 50 pips if i put trade every 10,10,10,15 pips and various volume?

Who could help me with this how to fill my excel or give some lead how to solve it. It will help me in counting ofcourse I have no problem to share EA.

Thank you in advance
Attached Images (click to enlarge)
http://www.forexfactory.com/attachme...1&d=1479544541 http://www.forexfactory.com/attachme...1&d=1479544542 http://www.forexfactory.com/attachme...1&d=1479544542
Attached Image
http://www.forexfactory.com/attachme...1&d=1479544302

Here is a video how it is going so far, but I want to improve.

Results is shown during video and final results in 26 minute I think

Inserted Video



I will apreiciate any help
Adapt useful, reject useless, add what is specifically your own.
David Perk CLS Strategy 1 All Time Return: 3,510.9%
  • #34
  • Dec 27, 2016 8:10am Dec 27, 2016 8:10am
Quoting MoneyZilla
{quote} Gurudeva, here is what exactly will happen to you. The idea is good, BUT, the delussion pops out due to a poor math made by the stragiests... For short periods of time, that idea will work. 1-2-3 months maybe. You will be very excited, making money. Lots of money. One day, you will see how your account is no more. That is what is going to happen with your idea. I do have an ea that is doing exactly that. So, I am speaking only experience based. What you can do? 1. Set a total SL target. It surely will get hit 2-3-4 times a year. Per...
Please share me that EA. Im a trader+programmer, and will try to optimize that EA.
I will surely consider your 3 suggestions above.
  • #35
  • Dec 28, 2016 3:46am Dec 28, 2016 3:46am
Quoting DaPerk
Hi guys I crated EA which is buying or selling against the trend and automaticaly close all positions on corections. viz pictures Does anyone knows formula how to count weighted margin and how much im minus after for example 50 pips if i put trade every 10,10,10,15 pips and various volume? Who could help me with this how to fill my excel or give some lead how to solve it. It will help me in counting ofcourse I have no problem to share EA. Thank you in advance Attached Images (click to enlarge) {image} {image} {image} Attached Image {image}...
Please explain more about your question (with example, will be better). I will try to help you..
  • #36
  • Dec 31, 2016 2:23am Dec 31, 2016 2:23am
Quoting DaPerk
Hi guys I crated EA which is buying or selling against the trend and automaticaly close all positions on corections.
I have watched your video. Very smart approach, but you are TOO SLOW in your TPs. This is where your improvement lays.

Any 3-day trend is likely to cause enormous troubles to the balance. Because you are too slow in TPs. And there are like 10 days trend movements, as we recently saw in EURUSD, for example.

Once you improve, you will realize there is no need to ask people for their money, to trade their money, as you are suggesting in the video...
Maadik Hugiis. IQ 69.
  • #37
  • Dec 31, 2016 2:36am Dec 31, 2016 2:36am
DaPerk, there is NO PROBLEM or ISSUE with your lot-size sequence here. The problem is WHERE DO YOU START IT? Where exactly? You have to wait. A lot. Before you start it.

The moment when the rate is coming closer to the last trades of your lot-size sequence, where the counter trend grid gets exhausted and the upcoming consequences might get pretty out of control, that moment... will destroy your waiting powers. That is why, back-testing such systems is nothing, but pure waste of time and energy. Most of the traders cannot face that kind of a pressure. That is why it works only in back-testing.

It can also works when having at least 1 mil USD account and NOT TRYING TO GET 50%-80% monthly returns, as suggested in the video you shared about your EA. Getting 1-2% a month, with the 1 mil account, would be just fine for you...
Maadik Hugiis. IQ 69.
  • #38
  • Dec 31, 2016 2:54am Dec 31, 2016 2:54am
Here's a small project you might be interested in.Find a good random number generator. There are many available on the web. Set the out put to be either "1" or "0". (Win or lose).Generate at least 500 numbers, or more if you wish.Run your martingale against the output and see how quickly you bust out. the results may be surprising.
  • #39
  • Dec 31, 2016 3:55am Dec 31, 2016 3:55am
Quoting eyeball
Here's a small project you might be interested in.Find a good random number generator. There are many available on the web. Set the out put to be either "1" or "0". (Win or lose).Generate at least 500 numbers, or more if you wish.Run your martingale against the output and see how quickly you bust out. the results may be surprising.
Put it on a demo. Run a reverse trade copier into a real. Enjoy Life...
Maadik Hugiis. IQ 69.
  • #40
  • Jan 30, 2018 11:00pm Jan 30, 2018 11:00pm
Check this little one

https://www.forexfactory.com/showthread.php?t=723986
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