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.
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,
MY FRIEND MARCO!
YOU FORGOT THE ... OrderSelect(...) BEFORE if(OrderProfit()<X)
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.
there is only one form of martingale, as far as I know, and usually it fails due to limited equity.
When I was experimenting and probably asking myself the same question you do now, I was using an EA called EquitySentry - if I remember well. It was closing ALL my opened trades when the loss was reaching a certain amount or percent of equity. That was the only way I found (those days) to control the loss.
Eventually I gave up because whatever I was gaining over the daytime I was losing in the night :)
Martingale Strategy ............. ? :P