Martingale/averaging expert advisors
Aug 31, 2016 at 06:51
A great trader I know built a system like this past few months ... pulled 300% in August with very little drawdown ... seems it can be done well if you know what you're doing. You could just run it each month with a set balance, every now and then you'd have a bad month where you're wiped out but most months you'd win big.
Miembro desde Feb 22, 2011
posts 4862
Sep 01, 2016 at 05:23
Martingale strategy is dangerous. It could work for years and than fail. Check the image out.
I made hundreds of percent and the it was gone.
I made hundreds of percent and the it was gone.
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Sep 01, 2016 at 08:09
Nice topic Kenneth.
There is plenty of working strategies like that. It s just that you need to set a hard stop that won t affect too much your montly income. As well reduce your risk as much as possible, I believe a grid should start at 0.01 as initial lot for a 10k account.
But you can run few similar EAs but on different pair not correlated.
Example: You have a marti/grid EA working and generating 2% profit per month and a hard stop at 5% DD. You run it on 4 pairs not correlated. The result will be 4x2%=8% per month with extreme case scenario 4x5%loss. Of course the chance that all your 4 pairs reach their hard stop the same month are very very very small.
The best things is to reduce your lot size as much as you can and apply your strategies on many different pairs. Most of us are failing with marti/grid strategies because of too big lot size and because of focusing only on one pair. Hard stop MUST be a part of the strategy.
There is plenty of working strategies like that. It s just that you need to set a hard stop that won t affect too much your montly income. As well reduce your risk as much as possible, I believe a grid should start at 0.01 as initial lot for a 10k account.
But you can run few similar EAs but on different pair not correlated.
Example: You have a marti/grid EA working and generating 2% profit per month and a hard stop at 5% DD. You run it on 4 pairs not correlated. The result will be 4x2%=8% per month with extreme case scenario 4x5%loss. Of course the chance that all your 4 pairs reach their hard stop the same month are very very very small.
The best things is to reduce your lot size as much as you can and apply your strategies on many different pairs. Most of us are failing with marti/grid strategies because of too big lot size and because of focusing only on one pair. Hard stop MUST be a part of the strategy.
buy low sell high
Miembro desde Feb 22, 2011
posts 4862
Sep 01, 2016 at 13:49
GiGio78 posted:togr posted:
Martingale strategy is dangerous. It could work for years and than fail. Check the image out.
I made hundreds of percent and the it was gone.
It depends on what type of Martingale're using.
And what kind of martingales are there?
Miembro desde Feb 22, 2011
posts 4862
Sep 01, 2016 at 13:49
sebast posted:
Nice topic Kenneth.
There is plenty of working strategies like that. It s just that you need to set a hard stop that won t affect too much your montly income. As well reduce your risk as much as possible, I believe a grid should start at 0.01 as initial lot for a 10k account.
But you can run few similar EAs but on different pair not correlated.
Example: You have a marti/grid EA working and generating 2% profit per month and a hard stop at 5% DD. You run it on 4 pairs not correlated. The result will be 4x2%=8% per month with extreme case scenario 4x5%loss. Of course the chance that all your 4 pairs reach their hard stop the same month are very very very small.
The best things is to reduce your lot size as much as you can and apply your strategies on many different pairs. Most of us are failing with marti/grid strategies because of too big lot size and because of focusing only on one pair. Hard stop MUST be a part of the strategy.
Running martingale with 5% DD makes no sense. Why?
Because with martingale such low DD will be hit often.
Miembro desde Nov 21, 2011
posts 1718
Sep 01, 2016 at 13:49
CrazyTrader posted:
Nothing is working for you... it is just temporarily. 1000 of people have tried before you did. Don't you know?
Do you know at least why it is working for you so far? Well with 3 years experience you are supposed to guess the answer. This answer is obviously temporarily, that's why at some points, if you don't stop your strategy before it happens, you will be in trouble.
I'm not a martingale hater as I have developped my own one... a tricky one, 10 times smarter that the one everybody uses, but not so easy to use.
Good luck anyway...
Martingale works only temporarily... I write this word for the third time.
It works well on range market conditions... as soon as you are facing a strong trend... boom!
By the way, where are the 2 accounts you had?
Sep 01, 2016 at 13:54
CrazyTrader posted:CrazyTrader posted:
Nothing is working for you... it is just temporarily. 1000 of people have tried before you did. Don't you know?
Do you know at least why it is working for you so far? Well with 3 years experience you are supposed to guess the answer. This answer is obviously temporarily, that's why at some points, if you don't stop your strategy before it happens, you will be in trouble.
I'm not a martingale hater as I have developped my own one... a tricky one, 10 times smarter that the one everybody uses, but not so easy to use.
Good luck anyway...
Martingale works only temporarily... I write this word for the third time.
It works well on range market conditions... as soon as you are facing a strong trend... boom!
By the way, where are the 2 accounts you had?
That's true sometimes, but if it's used on a trend strategy then it's the opposite, and some pairs will continue in a broad range so that it won't blow up. It is after all a lot sizing strategy.
I prefer smaller increments than x2/Martingale.
Keep at it
Miembro desde Nov 21, 2011
posts 1718
Sep 01, 2016 at 14:04
We all know how to create a winning strategy... It simply to add to the winning trades!
But doing so, you might notice that you will start losing... because not betting on the trendy pair... so account will go down... but at some points... you should be winning by a adding positions without closing profit... because when a trend starts it isn't for 200 pips but on the long term it's 2000 or 20000 pips!
It sounds logical to do the opposite of what doesn't work : )
But doing so, you might notice that you will start losing... because not betting on the trendy pair... so account will go down... but at some points... you should be winning by a adding positions without closing profit... because when a trend starts it isn't for 200 pips but on the long term it's 2000 or 20000 pips!
It sounds logical to do the opposite of what doesn't work : )
Sep 02, 2016 at 01:45
sebast posted:togr posted:
Running martingale with 5% DD makes no sense. Why?
Because with martingale such low DD will be hit often.
Why it will be hit often?
Aiming for 0.5% monthly growth it wouldn't be. Need context to say whether it would or not.
Keep at it
Sep 02, 2016 at 07:49
CrazyTrader posted:
Martingale works only temporarily... I write this word for the third time.
It works well on range market conditions... as soon as you are facing a strong trend... boom!
By the way, where are the 2 accounts you had?
You must be thinking of Grid ... martingale is simply a betting/sizing system ... you can use it in any market. In fact, it's probably most effective in a trending market as the extreme reward means you can use a multiplier.
Does anyone know of a good aggressive preferably free Martingale EA that will work with ECN broker vantage FX? I don't mind if it blows up every now and then, so long as it usually wins ... aim is to run it each with week with a couple hundred dollars.
Miembro desde Feb 22, 2011
posts 4862
Sep 02, 2016 at 10:23
sebast posted:togr posted:
Running martingale with 5% DD makes no sense. Why?
Because with martingale such low DD will be hit often.
Why it will be hit often?
as martingale opens bigger and bigger trades
your equity decrease
DD of 5% or more is common
Miembro desde Nov 21, 2011
posts 1718
Sep 02, 2016 at 10:25
I know what is a grid.
the topic is martingale/averaging... and it clearly doesn't work as soon as market gets trendy... this exactly this moment where your account blows up as you opened various trades with bigger lotsize in the wrong direction while market won't retrace back!
Boom at some point for sure by betting the wrong horse...
the topic is martingale/averaging... and it clearly doesn't work as soon as market gets trendy... this exactly this moment where your account blows up as you opened various trades with bigger lotsize in the wrong direction while market won't retrace back!
Boom at some point for sure by betting the wrong horse...
Sep 02, 2016 at 10:31
CrazyTrader posted:
I know what is a grid.
the topic is martingale/averaging... and it clearly doesn't work as soon as market gets trendy... this exactly this moment where your account blows up as you opened various trades with bigger lotsize in the wrong direction while market won't retrace back!
Boom at some point for sure by betting the wrong horse...
I thought the topic was martingale and or averaging strategies, as these get lots of negative attention anywhere they are.
Keep at it
Miembro desde Nov 21, 2011
posts 1718
Sep 04, 2016 at 06:34
I like martingale in a smart way... refer to my MMS (Money Management System) from my blog.
I just kindly warned the guy that claimed it was working for him... that it only works temporarily...
Do we have an idea on how many accounts blown in the fx world while using martingale?
=> 100 000 or 1 000 000 000 accounts?
I just kindly warned the guy that claimed it was working for him... that it only works temporarily...
Do we have an idea on how many accounts blown in the fx world while using martingale?
=> 100 000 or 1 000 000 000 accounts?
Miembro desde Nov 21, 2011
posts 1718
Sep 04, 2016 at 06:34
The only proper martingale that works is by using fix lotsize and adding trades to the winning position... but I still wonder why people want to add to the losing trades ???
Miembro desde Feb 22, 2011
posts 4862
Sep 04, 2016 at 06:35
Correct definition of martingale is that with decreasing equity you increase trade size. So even grid is form of martingale.
More common definition is that martingale is increasing trade size, while grid is adding more positions of the same size.
More common definition is that martingale is increasing trade size, while grid is adding more positions of the same size.
forex_trader_323686
Miembro desde Apr 26, 2016
posts 93
Sep 04, 2016 at 06:36
You can use a grid with a variant of the martingale multiplier with a limited number of levels to limit the account usage. By placing a stop loss below the lowest averaging down grid level, you should be able to keep the account from blowing. Trading with the trend and stopping the EA or placing of winning trades when the trend runs out will limit the usage of the grid.
