Martingale vs. Non Martingale (Simplified RoR vs Profit and the Illusions) - page 2

[Sergey Golubev]

Martingale, Hedging and Grid

The forum threads

1. Martingale vs. Non Martingale (Simplified RoR vs Profit and the Illusions)
2. Martingale, Hedging and Grid : MHG
3. Featured Martingale EA to explore and expand, provided by a programmer 
4. Does a safe Martingale exist ?
5. Why people are still trying Martingale Systems?
6. The Video - Trading The Martingale and Anti Martingale Strategies

CodeBase

1. Angry Bird (Scalping) - expert for MetaTrader 4 - the settings and trades - look at this post.
2. Grid Semiautomat Panel - expert for MetaTrader 5
3. Grid Template EA - expert for MetaTrader 4
   
4. VR---SETKA---3_v2 - expert for MetaTrader 5
5. KNUX Martingale - expert for MetaTrader 4
6. MacdPatternTraderAll0.01. Time+Martingale - expert for MetaTrader 4
7. Pure_Martingale - expert for MetaTrader 4
8. Trend_Catcher - expert for MetaTrader 5
9. and more and more - use search here 
10. Ingrid Martingale - expert for MetaTrader 5
11. RSI Martingale - expert for MetaTrader 5

The articles

• What is Martingale and Is It Reasonable to Use It?
• What Is a Martingale?
• Statistical Verification of the Labouchere Money Management System

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AmiBroker : converted from/to - the thread 

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[Sergey Golubev]

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 ;)

[Sergey Golubev]

VIDYA N Bars Borders Martingale - expert for MetaTrader 5

The EA receives signals from the custom indicator 'VIDYA N Bars Borders'. Before executing a trading signal, the EA checks the current profit - if the profit is negative, then the signal is executed with an increased lot (the 'Position Increase Ratio' setting works).

[Molefi Mokhethi]

Nigel Davis #:

 I'd disagree with you! If a person has an edge, those are the people who should be using martingale, as simply having an edge refers to an entry not being 50/50. I for one believe that I have an edge because my system doesn't experience more than 3 straight losses. With that said, and not knowing which of the 3 orders will be the winner, I use martingale to end the sequence of trading with net profit. Most people believe that after a loss, your chances of winning on the next trade increases, but that isn't true unless your system, over time, has demonstrated to not experience x amount of losses. Then and only then can you use martingale effectively! 

very true. 

[Sergey Golubev]

Modified Grid-Hedge EA in MQL5 (Part I): Making a Simple Hedge EA

Are you looking to dive into the world of trading with Expert Advisors (EAs) but keep bumping into this line - "No dangerous Hedging/Grid/Martingale used"? You might wonder what's all the fuss about these strategies. Why do people keep saying they're risky, and what's the real deal behind these claims? Maybe you're even thinking, "Hey, can we tweak these strategies to make them safer?" Plus, why do traders bother with these strategies in the first place? What's good and bad about them? If these thoughts have crossed your mind, you're in the right place. Your search for answers is about to end.

We'll start by creating a simple hedge Expert Advisor. Think of it as the first step towards our bigger project - a Grid-Hedge Expert Advisor. This will be a cool mix of the classic grid and hedge strategies. By the end of this article, you'll know how to whip up a basic hedge strategy and get the lowdown on whether this strategy is as profitable as some say.

[Sergey Golubev]

Modified Grid-Hedge EA in MQL5 (Part II): Making a Simple Grid EA 

Welcome to the second installment of our article series, "Modified Grid-Hedge EA in MQL5." Let's begin by recapping what we covered in the first part. In Part I, we explored the classic hedge strategy, automated it using an Expert Advisor (EA), and conducted tests in the strategy tester, analyzing some initial results. This marked the first step in our journey toward creating a Modified Grid-Hedge EA—a blend of classic hedge and grid strategies.

[Sergey Golubev]

Modified Grid-Hedge EA in MQL5 (Part III): Optimizing Simple Hedge Strategy (I)

Welcome to the third installment of our "Optimizing a Simple Hedging Strategy" series. In this segment, we'll begin with a brief review of our progress to date. So far, we have developed two key components: the Simple Hedge Expert Advisor (EA) and the Simple Grid EA. This article will focus on further refining the Simple Hedge EA. Our goal is to improve its performance through a combination of mathematical analysis and a brute force approach to find the most effective way to implement this trading strategy.

This discussion will focus primarily on the mathematical optimization of the Simple Hedge strategy. Due to the complexity and depth of the analysis required, it is impractical to cover both the mathematical optimization and the subsequent code-based optimization in a single article. Therefore, we'll devote this article to the mathematical aspects, ensuring a thorough exploration of the theory and calculations behind the optimization process. In subsequent articles of the series, we will shift our focus to the coding aspect of optimization, applying practical programming techniques to our theoretical foundations established here.

[Sergey Golubev]

Modified Grid-Hedge EA in MQL5 (Part IV): Optimizing Simple Grid Strategy (I)

In this installment of our ongoing series on the Modified Grid-Hedge EA in MQL5, we delve into the intricacies of the Grid EA. Building on our experience with the Simple Hedge EA, we now apply similar techniques to improve the performance of the Grid EA. Our journey begins with an existing Grid EA, which serves as our canvas for mathematical exploration. The goal? To dissect the underlying strategy, unravel its intricacies, and uncover the theoretical underpinnings that drive its behavior.
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In future articles, we'll turn our attention to the practical side — the actual coding. Armed with our theoretical foundation, we'll translate mathematical insights into actionable programming techniques. Stay tuned as we bridge theory and practice to unlock the full potential of Grid EA.

[Sergey Golubev]

Developing Zone Recovery Martingale strategy in MQL5

In this article we will create the zone recovery martingale forex trading strategy expert advisor (EA) in MetaQuotes Language 5 (MQL5) for MetaTrader 5 (MT5) step by step. The zone recovery martingale strategy is a common strategy that is oriented to counter loosing positions by opening opposite positions with a slightly greater trading volume that cancels the losing positions. It is basically a trend following strategy that does not care about the direction of the market, with the hope that at one point, the market will be trending either downwards or upwards and eventually particular targets will be hit.