Modified Martingale

[trevman]

[abrs70]

[trevman]

ok maybe forex numbers may make it easier to udnerstand. basic martingale is double down on every loss,

price......buy

1.9000 - 1lot

1.8500 - 1lot

breakeven = 1.8750

but what happens if i buy 2lots at 1.8500, where will my breakeven be then?

price......buy

1.9000 - 1lot

1.8500 - 1lot

1.8000 - 1lot

breakeven = 1.8500

but what happens if i buy 5lots at 1.8500 and then 3lots at 1.8000, where will my breakeven be then?

[hbud]

Hello trevman

Try this:

your 1.example ((100 * 2) + (100 * 1.5)) / (100 + 100) = 1.75

the 2. ((200 * 1.5) + (50 * 1.3)) / (200 + 50) = 1.46

and the 3. ((100 * 100) + (100 * 50)) / (100 + 100) = 75

for the 3. it is not 66 because otherwise 100-(100-66) had to be 50.

and by having more stakes : ((price*inv)+(price*inv)+(price*inv)) / (inv+inv+inv)

and so on.

Yes, its always a little bit tricky with the math.Your 66 had brought me initially to calc the so called Harmonic Mean http://mathworld.wolfram.com/HarmonicMean.html but had led me on a wrong track. For hours...damned.

Btw maybe later on you want to check out also the Supermartingale with your

spreadsheet calcs.I would be curious to see the outcomes.

hbud

[trevman]

hbud, ive been testing the suggested formula and ive noticed abit of an oddity. the distance between the price of trades and the price of breakeven seems to go up before it goes down like so

BREAK EVEN DIFF

8033 0

6024.75 2008.25

4685.91666666667 2677.66666666667

3765.46875 2761.34375

3112.7875 2610.725

2635.828125 2384.796875

2277.21205357143 2151.69642857143

2000.4052734375 1937.6474609375

1781.62456597222 1750.24565972222

1605.0310546875 1589.3416015625

1459.83229758523 1451.98757102273

1338.50646972656 1334.58410644531

1235.69529371995 1233.73411207933

1147.50138636998 1146.52079554967

1071.03398030599 1070.54368489583

diff = breakeven - price at last trade

surely it should go down from the start, rather than up. the forumlas are all correct.