Reversed martingale
mrv,
Think about it - Using the martingale or it's inverse says:
1)"I don't know what I'm doing" ((or 'I'm not sure where the market is heading"));
2) Trading Forex is pure chance which we know is not true;
3) "I'm ok with getting into another trade after a loss in perhaps a sideways or adversely affected market"
Forget about Martingale b/c you have to be the Casino and NOT the player
Hi all,
Just a thought on martingale, maybe someone will find this useful: if martingale is always loosing money, what would happen, if we reverse it? Multiply our positions when going into profit, set a small stoploss and let trend to take care about the rest. It should look like that:
1. enter 0.1 lots long eurusd, sl = 28 pips
2. when and if in profit 15 p, enter long 0.2 lots, move sl on both positions to 28 p from second entry
3. repeat this for another couple of times, then tp at 16 p.
All martingales will loose sooner or later, so this "reversed martingale" should inevitably win big at some point.
I will try to change existing martingale ea, say 10p3, to work like this sometime this week.Its has been done in house. And its the fastest wipe out EA I've made so far - reverse martingale(or we called it pyramidding to be exact).
When you stack your order to winning as below
Buy 0.10
Buy 0.20 -2spread when 0.10+15pips
Buy 0.40 -2spread when 0.20 +13pips & 0.10 +28pips
Market retrace 14pips
Buy 0.40 -16pips -6.40
Buy 0.20 -1pip -2.00
Buy 0.10 +14pips +1.40
Your total balance is -7.00 Congratulations!
Stop Loss adjusted to 28 from the last progression? Lets see
Buy 0.40 -30pips -12.00
Buy 0.20 -15pip -3.00
Buy 0.10 0pip +0.00
-15
Besides, when will be the best exit? Stack orders until when?
Regards
David
Then how about leaving order size unchanged?
I've only found 1 way to make this work.
Stop the progression when you have gained just 1 unit more than the equity you had before the progression began.
Unfortunately this doesn't work that well either. If you have a long series of win-loss-win-loss etc. you'll probably never recover.
The idea behind all this was: all martingales loose, sooner or later, because of trends with no retraces. We know they happen from time to time, so maybe we could have some use of them, besides just taking on? If we reverse our actions (pyramide in trend direction), we would have tons of relatively small losses and a couple of big wins. The "strategy" is not fully finished yet, and this is another very high risk (or definite wipe-out, don't know yet) trading approach, but it is interesting to see if it can be made to work.
Its has been done in house. And its the fastest wipe out EA I've made so far - reverse martingale(or we called it pyramidding to be exact).
When you stack your order to winning as below
Buy 0.10
Buy 0.20 -2spread when 0.10+15pips
Buy 0.40 -2spread when 0.20 +13pips & 0.10 +28pips
Market retrace 14pips
Buy 0.40 -16pips -6.40
Buy 0.20 -1pip -2.00
Buy 0.10 +14pips +1.40
Your total balance is -7.00 Congratulations!
Stop Loss adjusted to 28 from the last progression? Lets see
Buy 0.40 -30pips -12.00
Buy 0.20 -15pip -3.00
Buy 0.10 0pip +0.00
-15
Besides, when will be the best exit? Stack orders until when?
Yes, the math does not look very encouraging in this case. And there would be a lot of losses like that. The only exit is when we reach MaxTrades, say 5, and the 5th order moves pipstep + 1 p into profit (to mimic exact typical martingale stoploss). In this case, we will have (say pipstep = 15, maxtrades = 5):
0.01 lot - +76p - +7.6$
0.02 lot - +59p - +11.8$
0.04 lot - +42p - +16.8$
0.08 lot - +25p - +20$
0.16 lot - +8p - +12.8$
total +69$
The question only is: will those trends occur often enough to cover losses?
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
Hi all,
Just a thought on martingale, maybe someone will find this useful: if martingale is always loosing money, what would happen, if we reverse it? Multiply our positions when going into profit, set a small stoploss and let trend to take care about the rest. It should look like that:
1. enter 0.1 lots long eurusd, sl = 28 pips
2. when and if in profit 15 p, enter long 0.2 lots, move sl on both positions to 28 p from second entry
3. repeat this for another couple of times, then tp at 16 p.
All martingales will loose sooner or later, so this "reversed martingale" should inevitably win big at some point.
I will try to change existing martingale ea, say 10p3, to work like this sometime this week.