Martingale positioning management

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Classic martin management when the price goes in the wrong direction is to hedge and reduce the initial trade propotionally.
Do anyone have a management strategy without hedging and a hard stop? 
For example reducing the initial trade when acceptable DD is reached?
 
Oeyvind Borgsoe:
Classic martin management when the price goes in the wrong direction is to hedge and reduce the initial trade propotionally.
Do anyone have a management strategy without hedging and a hard stop? 
For example reducing the initial trade when acceptable DD is reached?

How about an "anti-martingale" strategy? For example, load up a Renko chart, apply some entry conditions, and then stack another entry at the close of each new profitable brick but in a continuously reduced lot/contract size. Then exit all at the close of first losing brick. The idea is that the largest trade has the most room to run, while the smallest trade has the least room to run. This can also be done with simple price levels. Renko bricks just make it easier to visualize.

 

Reducing risk I feel is not smart since will widden the average price for closing.

If you are planning to close based in hard SL, better just let the trade work or close it at X DD and enter again or hedge after X outcomes.

I dont use martins, but multipliers lower than 1.8 or even 1.6 and start with low lot sizes to keep reducing my average closing and be fast when closing during retracements.

Either grid, bars, or other triggers will execute next trades and only testing can tell the sweet spot.

 

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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 ;)


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