Why martingale EAs look profitable… until they aren’t (especially on gold) - page 3

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Ryan L Johnson #:

Personally, I don't trade based on feelings nor emotions. I trade based on statistics.

To each their own, I suppose. 

Trading on stats ,OOPS !! . Stats mean nothing in retail forex they say left the manipulators go right !! . 
 
Victor Paul Hamilton #:
Trading on stats ,OOPS !! . Stats mean nothing in retail forex they say left the manipulators go right !! . 

You're wrong and shouting in caps. 😅

Statistics are the basis of data forecasting, the highly detailed MT5 Tester Reports, and even a live trade ledger. Without statistics, a trader must have a fully functional 🔮.

As you love chaos, feel free to work it into your Happy New Year! 🍾🍸💊🍺🧪🍷💉🍹🚽

 
Ryan L Johnson #:

You're wrong and shouting in caps. 😅

Statistics are the basis of data forecasting, the highly detailed MT5 Tester Reports, and even a live trade ledger. Without statistics, a trader must have a fully functional 🔮.

As you love chaos, feel free to work it into your Happy New Year! 🍾🍸💊🍺🧪🍷💉🍹🚽

A ledger LOL .You sound like the type of guy that goes to a gym and writes down in a little note book how many reps he did after every machine he goes on . I love structured randomness actually LOL . Have a good one  🥳. 
 
Victor Paul Hamilton #:
A ledger LOL .You sound like the type of guy that goes to a gym and writes down in a little note book how many reps he did after every machine he goes on . I love structured randomness actually LOL . Have a good one  🥳. 

How did you know? 😂  I formerly body built with free-weights and machines and did exactly that.

You really do have a 🔮!

I fully appreciate your sense of humor. 🥳

 
Unfortunately, very few systems/EA's are profitable without some type of grid/martingale or recovery method. Personally, Gold grids are fine if you have realistic expectations and use real risk logic. With a gold grid, .01 per 3000 is the absolute minimum that makes sense. Not trying to become a billionaire overnight helps also. 
 
All martingale systems will eventually blow up. Show me a 5-year record of one that doesn't. Prove me wrong.
 
Comments that do not relate to this topic, have been moved to "_Trash_ Forum Cleanup".
Reminder : this topic is about EA and martingale.
 
I recently purchased an EA that uses grid logic but with technical trend following. now that i read your post, I feel like i might have made the wrong choice? please advise me. 
 
Kar Wai Cheng #:
I recently purchased an EA that uses grid logic but with technical trend following. now that i read your post, I feel like i might have made the wrong choice? please advise me. 

That is a rather classic mistake of new traders--nothing to be ashamed of.

You should really develop your own strategy based on your own research and testing. If you're following trends, consider stacking profitable trades based on a grid instead of digging a hole of losing trades. It doesn't really make sense to hold only a single profitable trade when price runs in your favor, while multiplying losing trades when price runs against you. Stacking profitable trades is known as pyramiding, anti-Martingale, reverse Martingale, or inverse Martingale. To be clear, you reduce your lot size as you stack profitable trades in this way. The underlying premise is that price runs strongest at its initial move and then eventually becomes exhausted.

As a caveat, you need substantial capital, high leverage, and/or a nano (cent) account to trade in this way. Let's say you want to stack up to a dozen profitable trades with a progressive reduction factor of 33%. Starting with 10.0 standard lots, we get (rounded):

  • 10.0
  • 6.70
  • 4.49
  • 3.00
  • 2.02
  • 1.35
  • 0.90
  • 0.60
  • 0.41
  • 0.27
  • 0.18
  • 0.12
 
Ryan L Johnson #:
  • 10.0
  • 6.70
  • 4.49
  • 3.00
  • 2.02
  • 1.35
  • 0.90
  • 0.60
  • 0.41
  • 0.27
  • 0.18
  • 0.12

    • It's a type of martingale, isn't it? The risks look the same, only you take the maximum risk immediately instead of increasing it as the price moves against you.

    [edit] Wait, what if the price immediately goes against you? Accept a huge loss?

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