Why are people still using Martingale/Grid systems when its 90% chance of blowing your account? - page 2

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You might aswell be asking why do people smoke cigarettes when it gives cancer or eat large amounts of sugar when it can be unhealthy.

It's the same answer always. Humans are short sighted by nature. It's easy to fall into obsession over something that can give you money so fast rather than understanding trading is not an easy game. 

I am not exempt from this. I think anybody who joins this world of finance will be lured by these systems. But once educated, i can never think of using these systems, especially the way they are marketed 
 
I think that this mostly relies on a lack of perspective regarding how long things actually take. So, when you see the possibility of automatically getting what you want in a shorter amount of time without paying a high price, that is when you face the reality of receiving less than you expected.
 
Lars Laeremans:

Genuine question for anyone running automated systems.

Why do people still buy grid or martingale EAs when most of us already know how these usually end?

The equity curve looks amazing at first. High win rate, tons of small wins, barely any red days. But the risk doesn't go away, it just gets pushed down the road. One strong trend or one bad news event and weeks of gains are gone in an afternoon.

I get why it's tempting though. Nobody likes taking a loss, and a system that keeps "recovering" feels safer than one that just eats a fixed SL. But avoiding losses and actually controlling risk are not the same thing, even if it feels like it in the moment.

I run the boring version myself on gold. One position at a time, fixed SL and TP, no averaging into losers, no lot multiplier, no hoping the market comes back. Lower win rate, normal losing trades, but I know exactly what I'm risking before I click buy.

Been live for a couple months now and honestly the boring part is what makes it easy to trust.

Am I missing something here? Genuinely curious why so many people still go for the smooth-looking systems when one bad sequence can wipe the account.

Because real strategy based EA are very very limited in the market and comparatively returns is less and does not give a very good looking curve 
 
Lars Laeremans:
 Why are people still using Martingale/Grid systems when its 90% chance of blowing your account?

Greed.

More specifically, the temptation of never having to accept a loss. The devil dances in glass pants.

 
fast to make 100% is the most important, no matter what strategy is. 
 
Muhammad Minhas Qamar #:
You might aswell be asking why do people smoke cigarettes when it gives cancer or eat large amounts of sugar when it can be unhealthy.

It's the same answer always. Humans are short sighted by nature. It's easy to fall into obsession over something that can give you money so fast rather than understanding trading is not an easy game. 

I am not exempt from this. I think anybody who joins this world of finance will be lured by these systems. But once educated, i can never think of using these systems, especially the way they are marketed 
The cigarette comparison is spot on tbh. It's the instant reward thing, our brains just aren't wired for "slow and boring but survives long term." And yeah nobody's immune early on, I fell for a few of these myself before I actually understood what I was looking at.
 
Isaac Uriel Arenas Caldera #:
I think that this mostly relies on a lack of perspective regarding how long things actually take. So, when you see the possibility of automatically getting what you want in a shorter amount of time without paying a high price, that is when you face the reality of receiving less than you expected.
Yeah, the time thing is underrated. Everyone wants the 3 year result in 3 months, and the moment a system promises exactly that, it sells. Doesn't matter that the math behind it makes no sense, the shortcut is just too tempting to question.
 
Ryan L Johnson #:

Greed.

More specifically, the temptation of never having to accept a loss. The devil dances in glass pants.

That "never accept a loss" mindset causes real problems on the seller side too. I built my own scalping EA with fixed SL, fully transparent, and people complain the second a losing trade shows up. They're so used to grids that never close a loser that a normal red trade feels broken to them, even though that's exactly how honest risk management works.
 
Lars Laeremans #:
That "never accept a loss" mindset causes real problems on the seller side too. I built my own scalping EA with fixed SL, fully transparent, and people complain the second a losing trade shows up. They're so used to grids that never close a loser that a normal red trade feels broken to them, even though that's exactly how honest risk management works.

Well hey, someone has to take the other side of our scalped runners, I guess.😁

Regarding the Sellers' Market, I think that it's safe to assume that the overwhelming majority of Market Buyers are relatively new traders, and to assume that new traders are easily enticed into using Martingale (Martingarbage) strategies. As we definitely know, profitable Sellers are good at identifying and catering to their predominant Market demographic. It's a viscous doom loop. There are 1000 ways for new traders to go wrong. This is merely another one.

 
The majority of those who start trading don't want to learn. Many switch from gambling to trading but the gambler mentality remains. In one of the hardest things someone can do over 90% come thinking that they just have to find the right printing money robot. Fun fact but also expected is the most sold ea's in the end will blow your account. 
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