This system works on eurchf 15 minutes
please read the attatched manual for deatils , pictures will follow soon(tommorrow)
I would appreciate your questions and suggestion ( though i believe the system is good as it is but perfection belong to God alone)
Trading this system will require your attention 24/5 so i will be glad if someone will code a robot tom trade it automatically
i ahve backtested it manually and traded it on demo account for the last 3 months and it has always succeded in producing 30- 50 % monthly average returns with low drawdown,( i assure you of that) but i want it coded and tested before going live with it
Thanks for sharing!
Because this is a martingale system, it does carry a nonzero risk that it will wipe out your account. So it will happen, eventually.
I was curious, however, what settings you are using for the SAR? Are they the default settings, or did you set them to something else? Also, I'm not sure I understand how you are advancing the size of your lots when going from one trade to the next.
An interesting twist on an old theme. Not sure why you would want to hold on to failing trades - why not close the trade when the PSAR goes against you then double your position on the next valid PSAR signal?
If it is a succesful as you say, then this change should significantly increase % returns.
Interested to know how you arrived at:
1. 20 pip target price
2. 30 divisor
3. 65 pip stepping
Have you looked at other pairs?
LOw Drawdown Account can nver wipe-off
i can assure you this system cannot wipe your account if you follow the recommended risk settings and you cant have more than 15% drawdown
the parabolic sar is default on 15 minute timeframe
the TP is as a result of experimentation ( i discovered that this figure is achieved more often than not, so this dramatically reduces the number of martingale trades)
the divisor came about because if you have a trade ( the first trade in this example) down by 85 pips with 0.01 lot size then opening the second trade at 0.02 will still result in a loss using TP=20.
so the drawdown of the latest trade is divided by 30 (in this case 85/30=2 ( remainders are discarded) so the lot size is taken 2 places down
using this lot sizing method means , you dont open new trades when the trend is against you , but you sum up all your martingale trades into 1 once the trend resumes in your favour as dictated by the parabolic SAR
Note that You will rarely have more than 3 consecutive open trades at any time
the hard part to really understand in this system is how to determine the lot size and i will be willing to answer further questions and make further clarifications
my pictures are coming very soon , please be patient
What many people dont realize is that this not a conventional martingale trading system
this trading system enters all its trades based on instruction from parabolic SAR not on "step" calculations , so when traditional martingale systems run into problem due to trend reversal this system does not initiate new trades because parabolic SAR wont issue new orders but when there is a slight corection or reversal the ea martingales the trade with a lot size adequate to guarantee overall profit and small risk ( some thing convetional martingale trading systems dont do)
Also you should understand that 60 percent of all trades are closed on first trade because many robots are based solely on parabolic SAR and they are partly successful
But this system is extremely successful because it isnt just a martingale system because martingale systems dont take cognozance of trend
it is a combination of traditional trading and martingale
further questions are welcome
also if you can help code this system , then you are also welcome
First of all, thanks for sharing--this is an interesting idea. I have a question, though...
The last 3 months have been rangebound and choppy--very good conditions for Martingale/grid type systems. However, almost every pair made large moves (with almost no retracements) at some point in 2008. I don't have a chart in front of me, but I believe the EURCHF made such moves in September/October 2008 and December 2007. Have you manually backtested in these periods?
Thanks for interesting idea, slight different from conventional martingale by step.
1)how do you decide start the initial trade (BUY or SELL)?
2)when TP hit, does you open new trades? BUY or SELL?
in my opinion to solve a martingale strategy is a "dream".
buy i am curios to see your statement.
can you explain me this "low DD" ? we suppose :
1 - open long trend
2 - meet contrary direction ( increasing DD)
3 - open another long
4 - if we meet another contrary trend (based on PSAR) we've a large DD ?
is it correct ?
thanks for sharing, i continue to follow your develop
first of all i want to assure you that no matter how sustained ther trend is , you will find a small retracement enough to give you 20 pips
the system determines this retacement with the help of the parabolic sar and takes advantage of it.
however , if the trend is sustained without a retracement, then the system will not open new trades untill a retracement does occur
and a 30 pip retracement will always occur on the 15 minute chart no matter how strong the trend may be( which means the system can open a new trade and close off all other trades with 20 pip TP (including spread)
The trade starts with a buy if the first parablic SAR signals a buy trade and vice versa
When the TP is hit the system starts looking for a trade in the opposite direction
I.E it waits for a new signal from Parabolic SAR
NB You must treat BUY and Sell trades completely independent of each other
If an EA is built for this system , then the Ea will be placed on 2 seperate eurchf charts. 1 for buy trades alone and the other for sell trades alone
this picture presents the trading system easier