Looking for Guidance on Enhancing a Martingale EA to Improve Risk Management

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Hello Everyone,

I’ve been working on a Martingale-based Expert Advisor (EA) for the past few weeks, and while the results are promising in certain market conditions, I’m facing challenges with risk management and drawdowns during extended losing streaks. I’m hoping to tap into the collective expertise of this forum for guidance.

Here’s an overview of my current setup:

  1. The EA opens additional trades after each loss, doubling the lot size (classic Martingale approach).
  2. It operates on major currency pairs (EUR/USD, GBP/USD) during high-liquidity sessions.
  3. A fixed stop-loss is applied to limit catastrophic losses, but it sometimes gets triggered prematurely.
  4. Backtesting shows good profitability during trending markets but struggles during prolonged sideways movements or extreme volatility.

Some areas where I’d appreciate advice:

  • Alternative Risk Management: Are there any modifications to the Martingale system (e.g., hybrid strategies) that reduce risk without sacrificing profitability?
  • Dynamic Lot Sizing: Has anyone experimented with algorithms that adjust the lot size dynamically based on account equity or market conditions?
  • Market Filters: What indicators or filters have you found effective for determining when to pause a Martingale EA? For example, avoiding high-impact news events or specific market phases.
  • Optimization Techniques: When optimizing Martingale EAs, how do you balance historical data fitting versus robustness for future market conditions?

I understand that Martingale strategies are inherently risky, but I’m curious if there are ways to improve their safety and efficiency without completely discarding the concept.

I’d love to hear your thoughts, experiences, or even critiques of my approach. Any insights or resources you could share would be greatly appreciated!

Thanks in advance for your help. Looking forward to learning from this community.

 
Kelly Gloria: on a Martingale-based Expert Advisor (EA) , I’m facing challenges with risk management and drawdowns

Martingale is not a strategy. It's a betting system.

Hedging, grid trading, same as Martingale.
          Martingale, Hedging and Grid : MHG - General - MQL5 programming forum (2016)

Martingale, guaranteed to blow your account eventually. If your strategy is not profitable without, it is definitely not profitable with.
          Martingale vs. Non Martingale (Simplified RoR vs Profit and the Illusions) - MQL5 programming forum (2015)

Why it won't work:
          Calculate Loss from Lot Pips - MQL5 programming forum (2017)
          THIS Trading Strategy is a LIE... I took 100,000 TRADES with the Martingale Strategy - YouTube (2020)
          Does a safe Martingale exist ? - Trading Systems - MQL5 programming forum (2010)

 
Your topic has been moved to the section: Expert Advisors and Automated Trading
Please consider which section is most appropriate — https://www.mql5.com/en/forum/172166/page6#comment_49114893
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