Can martingaling strategies be controlled to avoid an account crash

 

statement ~Martingaling strategies don’t work because eventually they crash the account~ correct??

Or is it  possible  mathematically that a forex system  which uses a martingale / cost averaging strategy can be made consistently profitable when combined with a sound market entry logic and a  limit on the number of martingaling trades combined with good money management, good timing for market entry.

Or does using any form of martingaleing always result in an account crash after a prolonged period of time.

 
Roler100:

statement ~Martingaling strategies don’t work because eventually they crash the account~ correct??

Or is it  possible  mathematically that a forex system  which uses a martingale / cost averaging strategy can be made consistently profitable when combined with a sound market entry logic and a  limit on the number of martingaling trades combined with good money management, good timing for market entry.

Or does using any form of martingaleing always result in an account crash after a prolonged period of time.


iv used martingale and its nice to have with a strategy that has adaptation.

usually you never know the technical of a strategy until you've programmed a robot adviser

you do however have to look at it in this way.. you use a system that is raising the risk while your profits are all at risk the more you risk

rather than just percent of equity which is sound money management because it automatically adjusts

 
Subgenius:


iv used martingale and its nice to have with a strategy that has adaptation.

usually you never know the technical of a strategy until you've programmed a robot adviser

you do however have to look at it in this way.. you use a system that is raising the risk while your profits are all at risk the more you risk

rather than just percent of equity which is sound money management because it automatically adjusts

do you have an example of how you have implemented this strategy
 
Subgenius:


usually you never know the technical of a strategy until you've programmed a robot adviser


this only counts for the positive outcome, or in situations where you don't do the math.

if you do the math on forehand you can calculate what can happen on various occasions.

{
 // Your Strategy Here...
}

if(OrderProfit()<X)
 {
  // Close order
 }


This is Math.

You know on forehand that your logic is programmed not to loose more then X on every trade.

So it is possible to calculate how many times you can hit a loss of X before your account 'crashes' as Roler100 puts it.

Now the outcome of your logic will depend on the size of X and on the strategy used on the occasions when your trade does not end up in a loss.

That part will depend on how you handle the winning trades,

 
Roler100:

statement ~Martingaling strategies don’t work because eventually they crash the account~ correct??

Or is it  possible  mathematically that a forex system  which uses a martingale / cost averaging strategy can be made consistently profitable when combined with a sound market entry logic and a  limit on the number of martingaling trades combined with good money management, good timing for market entry.

Or does using any form of martingaleing always result in an account crash after a prolonged period of time.

U can prevent account crash only if u have Infinite Balance.
 

How much bigger balance you have your against market in trillion so its a kind of gamble not a strategy.  

 "The system inherited it's name after John Henry Martindale, whose name was contorted. However, he didn't use this system himself, only encouraged players to use it in his casino. He wanted to lure players using simple system he thought was airproof. His casino was supposed to get in trouble and went bankrupt. This happened about 200 years ago. "

In a casino any player have a limit so maybe it works there but in Forex  hard to beat market.  Its possible trader with large account can beat market Maker broker but that kind of broker always set a maximum deposit limit+Stop Out Limit. 

 
Martingale is one of the opportunities to waste your money
 

Limited martingale (say K  doublings, when you have K+C doublings of free margin) with frequent withdrawals is perfectly fine.  However, if you find you have to redeposit at any point, that's a sign that particular strategy has come to an end.  Beware of ever using a signal that martingales though, especially if it's not being traded by the signal provider.

 

Yes and NO.


I do not believe you can actually stop a martingale strategy from blowing up an account. You can however successfully employ one to make consistent profits if you withdraw constantly. So you get many withdrawals from the account to take out profits until account blows up. Then you restart account again and cycle over and over again. In this way the profits you withdraw should be bigger that the account loss on blowup.

 
theoritically its possible and its possible in real life as well, but the point is can any one be satisfied with the growth of that account if s/hs want to trade safely on martingale system
 
Nobody has unlimited amount of money! this is not realistic.
Reason: