Money management vs Martingale....
Apr 24, 2010 at 01:01
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19 Replies
forex_trader_7
会员从Aug 01, 2009开始
941帖子
Apr 24, 2010 at 01:01
I found this recently and thought some of you might be interested.
It's one persons application of MM and a much better bet than Martingale I believe.
https://www.winnersedgetrading.com/trade-of-the-day/nytime-money-management
It's one persons application of MM and a much better bet than Martingale I believe.
https://www.winnersedgetrading.com/trade-of-the-day/nytime-money-management
forex_trader_7
会员从Aug 01, 2009开始
941帖子
Apr 24, 2010 at 04:27
Prof Van Tharp https://en.wikipedia.org/wiki/Van_K._Tharp also had a lot to say about this.
Basically it addresses the role of streaks on trading and how to deal with them. Increase the trades when it's going for you, decrease when you suck.
Basically it addresses the role of streaks on trading and how to deal with them. Increase the trades when it's going for you, decrease when you suck.
会员从Oct 29, 2009开始
76帖子
Apr 24, 2010 at 04:58
Having experiences both situation... I am still trying to find if there is a balance between money management and martingale strategies.
The idea of managing drawdown from martingale with probably hedging vs MM when trades are moving in your favour.
Is there such a thing?
The idea of managing drawdown from martingale with probably hedging vs MM when trades are moving in your favour.
Is there such a thing?
NEVER say DIE!!!
forex_trader_7
会员从Aug 01, 2009开始
941帖子
Apr 24, 2010 at 05:31
(已编辑 Apr 24, 2010 at 05:32)
Casey read that article. In effect that is anti martingale with a limit to how much risk you add. Martingale adds to a losing streak, this adds to a winning streak...and that 's key...
forex_trader_3463
会员从Nov 22, 2009开始
31帖子
Apr 24, 2010 at 14:03
Thats a pretty good article and advice. I really don't think you can spend to much time on perfecting the MM style that works for you and your system. I have worked with some algorithms in my EA that decrease lot sizes when a streak of losers appear. I do think that it can keep you from getting wiped out, especialy when a robot is doing the trading
forex_trader_7
会员从Aug 01, 2009开始
941帖子
Apr 24, 2010 at 15:20
(已编辑 Apr 24, 2010 at 15:21)
Well, one concept that i find very important is this:
If you have 100 bucks and you lose 10% you have 90 bucks. If you add 10% to 90 bucks you have 99 bucks, not 100.
If you lose 50% of 100 bucks it's 50 bucks, if you add 50% to 50 bucks, it's 75 bucks, so to break even on a 50% loss you have to make 100%.
Don't lose. Which is what that article is about, or if you're losing lose less or nothing.
If you have 100 bucks and you lose 10% you have 90 bucks. If you add 10% to 90 bucks you have 99 bucks, not 100.
If you lose 50% of 100 bucks it's 50 bucks, if you add 50% to 50 bucks, it's 75 bucks, so to break even on a 50% loss you have to make 100%.
Don't lose. Which is what that article is about, or if you're losing lose less or nothing.
Dec 09, 2014 at 08:04
I don't think they put it directly but you'll see the controls they put to limit/stop it:
e.g. exness and hotforex
- leverage (they lower the leverage when your balance gets higher or during holidays and weekends - e.g. https://www.exness.com/forex/leverage or https://www.hotforex.com/en/account-types/account-comparison.html)
- Minimum volume of position (they increase the volume requirement when your account gets bigger - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum cumulative volume of positions / Maximum Total Trade Size (Lots) (not in exness but other limit the max volume - e.g. https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum number of positions (they lower your max open positions when you have a highly leveraged account - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Stop out level (stop out level increases on highly leveraged accounts - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
Other brokers also do that. Those details are some that I look out for when I search for a broker. The ones that have the 'best' conditions like high leverage, no min/max on volume and open positions, and low stop out levels are usually scams based from my experience.
e.g. exness and hotforex
- leverage (they lower the leverage when your balance gets higher or during holidays and weekends - e.g. https://www.exness.com/forex/leverage or https://www.hotforex.com/en/account-types/account-comparison.html)
- Minimum volume of position (they increase the volume requirement when your account gets bigger - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum cumulative volume of positions / Maximum Total Trade Size (Lots) (not in exness but other limit the max volume - e.g. https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum number of positions (they lower your max open positions when you have a highly leveraged account - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Stop out level (stop out level increases on highly leveraged accounts - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
Other brokers also do that. Those details are some that I look out for when I search for a broker. The ones that have the 'best' conditions like high leverage, no min/max on volume and open positions, and low stop out levels are usually scams based from my experience.
Dec 09, 2014 at 08:16
harin posted:Would you give me those 'clues information' for Think Forex? Sory, English is my second language, so I am not aware yet about this kinds information...
I don't think they put it directly but you'll see the controls they put to limit/stop it:
e.g. exness and hotforex
- leverage (they lower the leverage when your balance gets higher or during holidays and weekends - e.g. https://www.exness.com/forex/leverage or https://www.hotforex.com/en/account-types/account-comparison.html)
- Minimum volume of position (they increase the volume requirement when your account gets bigger - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum cumulative volume of positions / Maximum Total Trade Size (Lots) (not in exness but other limit the max volume - e.g. https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum number of positions (they lower your max open positions when you have a highly leveraged account - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Stop out level (stop out level increases on highly leveraged accounts - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
Other brokers also do that. Those details are some that I look out for when I search for a broker. The ones that have the 'best' conditions like high leverage, no min/max on volume and open positions, and low stop out levels are usually scams based from my experience.
Cent account matter$
Dec 09, 2014 at 09:02
Elkart posted:
I found this recently and thought some of you might be interested.
It's one persons application of MM and a much better bet than Martingale I believe.
https://www.winnersedgetrading.com/trade-of-the-day/nytime-money-management
It is only useful for strategies that lose or win more trades in row.
Dec 09, 2014 at 11:24
PrinceFx posted:harin posted:Would you give me those 'clues information' for Think Forex? Sory, English is my second language, so I am not aware yet about this kinds information...
I don't think they put it directly but you'll see the controls they put to limit/stop it:
e.g. exness and hotforex
- leverage (they lower the leverage when your balance gets higher or during holidays and weekends - e.g. https://www.exness.com/forex/leverage or https://www.hotforex.com/en/account-types/account-comparison.html)
- Minimum volume of position (they increase the volume requirement when your account gets bigger - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum cumulative volume of positions / Maximum Total Trade Size (Lots) (not in exness but other limit the max volume - e.g. https://www.hotforex.com/en/account-types/account-comparison.html)
- Maximum number of positions (they lower your max open positions when you have a highly leveraged account - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
- Stop out level (stop out level increases on highly leveraged accounts - e.g. https://www.exness.com/register or https://www.hotforex.com/en/account-types/account-comparison.html)
Other brokers also do that. Those details are some that I look out for when I search for a broker. The ones that have the 'best' conditions like high leverage, no min/max on volume and open positions, and low stop out levels are usually scams based from my experience.
it looks like it's not on one page, probably on the user agreement, but you can find some info here:
https://www.thinkforex.com/markets/contract-specifications
https://www.thinkforex.com/why-thinkforex/regulation/margin-call-policy
https://www.thinkforex.com/trading-platforms/trading-account-types
forex_trader_191821
会员从May 23, 2014开始
12帖子
Dec 10, 2014 at 13:33
IMO martingale is a trading system that is not based on analyze of market, it's like gamble. So it's better to invest funds to PAMM manager that uses a good trading system based on analyze.
But it's only IMO.😄
But it's only IMO.😄
Feb 02, 2015 at 20:26
martingale is a very risky method of investing. The main idea behind the Martingale system is that statistically you cannot lose all the time, and therefore you should increase the amount allocated in investments--even if they are declining in value--in anticipation of a future increase.
The Martingale system is commonly compared to betting in a casino. When a gambler using this method loses, he or she doubles his or her bet. By repeatedly doubling the bet when he or she loses, the gambler will (in theory) eventually even out with a win. Of course, this is assuming the gambler has an unlimited supply of money to bet with.
The Martingale system is commonly compared to betting in a casino. When a gambler using this method loses, he or she doubles his or her bet. By repeatedly doubling the bet when he or she loses, the gambler will (in theory) eventually even out with a win. Of course, this is assuming the gambler has an unlimited supply of money to bet with.
会员从Jan 27, 2015开始
1帖子
Feb 03, 2015 at 08:04
fx_book posted:
When a gambler using this method loses, he or she doubles his or her bet. By repeatedly doubling the bet when he or she loses, the gambler will (in theory) eventually even out with a win.
And the reality is that, suppose he starts with a $1 bet, after 8 losses his next bet will risk $512. If he wins the whole episode has won him $1, if he loses he has lost $1022. Nice r/r.
forex_trader_202879
会员从Aug 07, 2014开始
406帖子
Feb 03, 2015 at 15:54
fx_book posted:
martingale is a very risky method of investing. The main idea behind the Martingale system is that statistically you cannot lose all the time, and therefore you should increase the amount allocated in investments--even if they are declining in value--in anticipation of a future increase.
The Martingale system is commonly compared to betting in a casino. When a gambler using this method loses, he or she doubles his or her bet. By repeatedly doubling the bet when he or she loses, the gambler will (in theory) eventually even out with a win. Of course, this is assuming the gambler has an unlimited supply of money to bet with.
Very well sad. The crazy thing about martingale and forex is that many people say that martingale is a 'system', when it isn't. When you are in a casino, it is your system, but in forex it isn't. Say you have any one given system, and you believe it to be accurate enough where as you don't experience more then 5 straight losses. Why wouldn't you use martingale with such an accurate system?Simply using martingale in trading while taking bias entries will more then likely end up in a quick margin call.
Recommendation is to find a very accurate trading system with a very small avg Pip-drawdown, and use martingale with such system.
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