Help with martingale

[[Deleted]]

Hey guys, how can i make an martingale like:

If the EA loss 3 or 4 times in a row, it will double the lot?

Kindest regards,

Thomas

[Huck Finn]

Martingale systems put your account as risk repeatedly because they do not use a uniform Trade Size [ Trade Size = Account Balance / (# of lots x 1000) ], or stating that formula differently:

Account Balance/Trade Size = No. of Lots x 1000. Stable EA's typically use Trade Sizes of 25 to 50.

If your win pct is below 50% the martingale system will eat up your account in no time at all. If your win pct is above 50 pct just use straight up trades. If your EA has Profit Factor below 1.0 do not use it for trading. I wrote another post regarding MM a few days ago and in it I described what is did to make turn an EA that had a bad Profit Factor into one that had a Profit Factor over 1.0 ('MM needed for a yearly target' )

Martingales systems do not work in casinos and I think they are equally bad in Forex trading. The beauty of Forex is there is no fixed odds against you. You have the opportunity to create something with your own bias; a bias that favors you. Once you have done that do not use a martingale money management system. You are far better off making straight up trades.

A formula that I use to evaluate an EA's trading algorithm is: Preliminary Profit Factor = win pct/ lose pct x reward/risk

The PPF for casinos is in the 1.05 to 1.10 range. However, it should be noted that their Trade Size is over 1,000,000 or better which means their millions against your $2 bet. Their stochastic model is stable because they have a very very big Trade Size, and they have millions of iterations using that model. In FX trading, you'll only get several hundred to a couple thousand trade iterations each year through your model that is why even with a Profit Factor of 1.5 you have to use Trades Sizes of 75 to 100 to make it stable.

You can easily create an EA that has a PPF over 1.5 and if you work at it you can create one with a PPF over 3.0

An EA with a PPF over 3.0 is an absolute gold mine. EA's with a PPF of 1.5 are still pretty good, but the Trade size typically has to be in the 75 to 100 range to make them stable. The 1.5 EA's have returns that would make most mutual funds blush with envy. The 3.0 or better EA's produce results that top any chart used by mutual funds.

Cheers

[Hatem Abou Ouf]

HELP NEEDED TO DESIGN A MARTINGALE SYSTEM TO SURVIVE IN THIS WAVE.

Hi all, i am a physician involved in Forex as a hobby and playing around with EA builder. However, i have designed an automated trading system with winning rate (65-73%) but most of the won trades is small, while the losing ones are large( from 1 : 2 to 1:3). So, the end of this system is losing but with a very long periods and it could sustain for a period of time without losing the whole account. Simply this EA can survive in ranging to consolidating to moderate trending market conditions but not in a highly trending markets. I have designed an inversed form of this simple EA which can follow the trend very well but lose during the ranging markets. The number of trades on 5 minute charts (around 10/day) or 15 chart (around 7-8/day). I would appreciate your ideas to enhance its performance. Any ideas will be highly considered. Please dont hesitate to share with me your opinions whatever are.

Primarily here i am talking about the ranging EA, the one which could survive in the ranging markets and trying to avoid the aggressive trending conditions.

OK. now, i am thinking of ;

1- I am considering News filter indicators to avoid spike times.

2- using some other indicators to filter the entry and i have found some i could combine. So, i could cut down the number of trades from 10 to 2 or 3 on the 5 minute frame. But selecting only the highly probable ones.

3-considering Hedge or martingale during the highly trend periods.

4-considering using a logical stop loss to cut the nagative trades short without affecting the ones running to my side.

5-Considering using positive progressive betting system instead of martingale. This is based on the high number of my trades are Positive rather than negative.

That is all for now. Please if you have any idea i would appreciate to share it with me to solve this issue.

ESPECIALLY WITH THE BETTING SYSTEM TO CHOOSE AND HOW I COULD USE IT :).

email: mcgene2010atyahoo.com

Hatem

Help to design a martingale to survive this wave!