Martingale EA - page 6

omelette
784
omelette  
ElectricSavant:
Are there simple martingales and complex martingales?....what if it triples each time what is that?...

The suffix or latin of the word does not necessarilly reavel doubling does it?

These are honest questions that I have that I do not know the answers to...anybody?

This thread is titled Martingale EA...so I guess this is alright.

ES

Wasn't it named after a French guys style of gambling in the casinos?

Cost averaging is probably a better definition where the lotsize and price spacing can vary. I guess 'modified Martingaling' is a fair description of trebling and quadrupling - though I could be wrong!

WNW
632
WNW  

Sorry if I appear to be anal here.. this is really only a matter of semantics..

Strictly speaking, Martingale is doubling. Nothing else is a Martingale.

D'Alembert is incrementing/decrementing by 1 unit only.

The "Binary Equation" is a recently made-up term. The progression is a D'Alembert up to a pointwhere it then mutates to something more akin to a Martingale. It's very dangerous.

There is quite a number of other progressions, some of the other well known ones do have names, this falls more under the topic of betting/gambling.

[Deleted]  

Just a reminder...Investopedia is a rather respected site.

also...

A Cresent Wrench later became an adjustable open-end wrench

ElectricAnalSavant

omelette:
Wasn't it named after a French guys style of gambling in the casinos? Cost averaging is probably a better definition where the lotsize and price spacing can vary. I guess 'modified Martingaling' is a fair description of trebling and quadrupling - though I could be wrong!
omelette
784
omelette  
WNW:
Sorry if I appear to be anal here.. this is really only a matter of semantics..

Strictly speaking, Martingale is doubling. Nothing else is a Martingale.

D'Alembert is incrementing/decrementing by 1 unit only.

The "Binary Equation" is a recently made-up term. The progression is a D'Alembert up to a pointwhere it then mutates to something more akin to a Martingale. It's very dangerous.

There is quite a number of other progressions, some of the other well known ones do have names, this falls more under the topic of betting/gambling.

Yep, agreed. However, I think that binary lotsizing (does this lotsizing strategy have a 'proper' name?) is far kinder on your account than 'proper' martingaling, even if the trade-off is account size grows much more slowly. That said, I have yet to find a convincing situation when you are trading 'properly' (no grids etc.) where any of these sizing strategies are useful - I mean, if you have a good strategy to begin with, why bother increasing risk...

omelette
784
omelette  
ElectricSavant:
Just a reminder...Investopedia is a rather respected site.

also...

A Cresent Wrench later became an adjustable open-end wrench

ElectricAnalSavant

But isn't Investopedia actually confirming that Martingaling is doubling-up?...

[Deleted]  

Meaning of words and the Change in meanings of Words have been added and noted in dictionaries throughout history more and more as we slaughter the English Language...just ask the British their opinion of the English used in America...

ES

[Deleted]  

The definition and "common" use is explained...The last time I read English anyways...this no absolute reference to "doubling" other than ONE common use.

A money management system of investing in which the dollar values of investments continually increase after losses, or the position size increases with lowering portfolio size.

This 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.

[Deleted]  

Now...

there is a common use for a knife...

It is up to who is using it to define it...

Martingaling in its pure sense depends on a progression to get it out of trouble with trade sizing through averaging down WHEN COMMONLY USED IN TRADING...(This EA uses pyramiding also, which could be considered a mathematical progression, but lets not go there).

The Frenchman has had a dis-service committed against him.

ES

[Deleted]  

I again stand corrected...shall we start a poll?

What do you call this EA if you do not use the doubling input? also how would you explain the pyramiding in the same direction if you did...

ES

sunwest:
I have always known the term "martingale" for betting strategy referring to "doubling your bet after each loss until a win"

Here is the wikipedia version:

Martingale (betting system) - Wikipedia, the free encyclopedia

Keep the good work Wolfe,

Sunwest
[Deleted]  

I like omy's suggestion"

"modified martingale"

what do you guys think?

ES