Martingale system vs Anti-Martingale system

 

Dear MQL5ers,

I would like to start this topic about the two different trading system which are the martingale and the anti-martingale.

The anti-martingale is a trading system in which you add to your position as the market moves in your favor or after a winning trade, while the martingale system is a trading system in which you add to your position as the market moves against you or after a losing trade.

Which trading system would you prefer ?

 

Hedging, grid trading, same as Martingale.

Martingale, guaranteed to blow your account eventually. If it's not profitable without, it is definitely not profitable with.
          Martingale vs. Non Martingale (Simplified RoR vs Profit and the Illusions) - MQL5 programming forum 2015.02.11

Why it won't work: Calculate Loss from Lot Pips - MQL5 programming forum 2017.07.11

 

I've read about Anti-Martingale in two contexts. One is when your position goes against you, instead of doubling the lot you halve it. The other one is, when a position goes in your favor, you double your stake in the favorable direction. It's also called Pyramidizing. I have no experience with any of this, but there are trader schools which claim to be able to teach those techniques. Good luck with this.

 
I will talk from my personal experience. I use martingale and this is my steadiest and most profitable trading system. But I also have to say it is not exactly doubling up Lots volume all time and I have a limit of increements in Lots volume. Otherwise if you are just doubling and enter the market chaoticly you will blow your account for sure.
 

These are some great stuff guys.

Thanks for sharing these useful info

 
Forex Jarvis:

Dear MQL5ers,

I would like to start this topic about the two different trading system which are the martingale and the anti-martingale.

The anti-martingale is a trading system in which you add to your position as the market moves in your favor or after a winning trade, while the martingale system is a trading system in which you add to your position as the market moves against you or after a losing trade.

Which trading system would you prefer ?


Anti-Martingale system 100%

 

Forum on trading, automated trading systems and testing trading strategies

Trading: What is Martingale and Is It Reasonable to Use It?

Proximus, 2013.08.24 03:00

It works if the net profit factor is above 1 and the win rate is higher than 50%, martingale is a double or nothing either doubles your money or doubles your losses, so if you have a 60% win rate with 1:1 RR ratio you can use it safely, if not then dont.


Whats funny about forex that you dont start from 50% win rate from the start because the market is changing not a fix probability set like a roulette or blackjack game.So if you start it like a betting system you will have like 40% win rate with 1:1 RR if you take trades random, maybe on the 9999999999999999999999th trade you hit 49.9% but thats still not enough.So it is better to filter out crappy trades first and then increase your win rate to be martingale compatible! And this is the advantage of investing vs gambling, you can filter out bad trades, on the roulette or blackjack you cant filter out bad hands or spins unless you cheat, but surely not the statistical way!!


This is how my 60% win rate, real martingale system looks like, and how it should suppose to look like, on LEVEL 7 settings (2^7)

Here are my martingale type systems:

1) CLASSICAL MARTINGALE AFTER 567 TRADES (60% WR, 1:1 RR)


As you can see after 500 trades it barely hit LEVEL 7 and even if we would lost that we would lose only half of the profit and continue from there to grow it back!

Of course you need a big account for this like one that can support like 10 lot size trades to be only 1% account risk, but statistically its very improbable to blow your account since its only 1% risk versus huge potential gains...The martingale presented in this article is BS with like 40-45% win rate which is sadly not enough, not even 50% is, must be 51 or higher...

2) PROGRESSIVE DYNAMIC GROWTH MARTINGALE (60% WR, 1:1 RR)


3) PROGRESSIVE STATIC GROWTH MARTINGALE (60% WR, 1:1 RR)


4) ANTI MARTINGALE or INVERSE MARTINGALE (60% WR, 1:1 RR)


enjoy and good programming ;)


 
Rodi Chamii:

Dear MQL5ers,

I would like to start this topic about the two different trading system which are the martingale and the anti-martingale.

The anti-martingale is a trading system in which you add to your position as the market moves in your favor or after a winning trade, while the martingale system is a trading system in which you add to your position as the market moves against you or after a losing trade.

Which trading system would you prefer ?

AFAIK it has already been demonstrated somewhere that anti-martingale (increasing positing with winning trades) actually works. The problem, though, is that I'm not sure which were the study parameters. For example, if you have a winning trading strategy and makes 10k working with a fix hand, let's say, 100 shares, than it's obviously the case that increasing your hand in all trades by 200 will make your profits increase. Anti-martingale, in increasing your hand as you have success, is kinda in the middle of that, so till which point the increase in profit is because of anti-martingale itself and not simply because you're using a bigger hand in a successfull trading strategy, that's not so easy to verify.

In general, though, any of such systems that increase the size of your hand will increase your profits when working with a profitable trading strategy for the reason mentioned above, so maybe instead of waiting for the gain (anti-martingale) or loss (martingale) to determinate the volume of your next trade, if you have the money to do that increase, you should increase the default volume instead.

Oh and BTW: theoertically both martingale and anti-martingale in a strict sense is purely mathematical since they assume an infinite amount of money in your pocket, and that is not true not even for Bezos. At best one should consider implementing a semi-martingale or a semi-anti-martingale, when the increase is limited.
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