What do you think about Martingale strategy ? - page 2

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CLERICI GIANLUIGI:

So study hardly TECHNICAL ANALYSYS with theory and practical example, then use correctly properties of INSTRUMENTS FINANCIARY;

I had excellent results only after a year of daily 2 hours a day practice!

Bye and good trading!

You mean, you are success with martingale and its continuing? 
 

i loose 1200$ on martingale yesterday.

martingale is very profitable but when market conditions changes it crashes account . . . . .

it crashes two of my account based on martingale EA 

 
abdul salam:

i loose 1200$ on martingale yesterday.

martingale is very profitable but when market conditions changes it crashes account . . . . .

it crashes two of my account based on martingale EA 

Very sorry to hear that you have crashed two accounts. But unless you have INFINITE money, martingale will ALWAYS result in destroying every account you try it on. You can't escape it, it is a mathematical fact. It was invented by gamblers - I think that says it all.

Get it wrong only 10 times in a row using an initial 0.01 lot size and your "bet" will need to be a massive 10.24 lots on your 11th attempt, just to win back your original 0.01 bet!!! How could that ever possibly make sense to anyone???

0.01
0.02
0.04
0.08
0.16
0.32
0.64
1.28
2.56
5.12
10.24
 
abdul salam:

i loose 1200$ on martingale yesterday.

martingale is very profitable but when market conditions changes it crashes account . . . . .

it crashes two of my account based on martingale EA 

So sad. Me also lost appx. 2500$ last year due to martingale. That's why I am telling, Martingale is account killer.
 
Stuart Browne:
Very sorry to hear that you have crashed two accounts. But unless you have INFINITE money, martingale will ALWAYS result in destroying every account you try it on. You can't escape it, it is a mathematical fact. It was invented by gamblers - I think that says it all.

Get it wrong only 10 times in a row using an initial 0.01 lot size and your "bet" will need to be a massive 10.24 lots on your 11th attempt, just to win back your original 0.01 bet!!! How could that ever possibly make sense to anyone???

0.01
0.02
0.04
0.08
0.16
0.32
0.64
1.28
2.56
5.12
10.24

Till now Martingale is one of the famous strategy to earn profit. I am also planning to create a strategy with Martingale but not like this killer math. 

I will use 1 step Martingale, as like .01, .02, .03, .04, .05 etc. Lets see what result is waiting for me. I will take maximum 10 chances i.e. .10, so total lot will be .55 

 
Pankaj D Costa:

Till now Martingale is one of the famous strategy to earn profit. I am also planning to create a strategy with Martingale but not like this killer math. 

I will use 1 step Martingale, as like .01, .02, .03, .04, .05 etc. Lets see what result is waiting for me. I will take maximum 10 chances i.e. .10, so total lot will be .55 

That's a progressive system, not martingale. The major problem with that type of system is that once you reach the 4th leg you can no longer recover your loses. And like martingale, the more legs you lose, the loses get exponentially larger.

The sad fact is, no "betting" system will turn a losing strategy into a winning one. Just a bigger loser ;-)
 
Stuart Browne:
That's a progressive system, not martingale. The major problem with that type of system is that once you reach the 4th leg you can no longer recover your loses. And like martingale, the more legs you lose, the loses get exponentially larger.

The sad fact is, no "betting" system will turn a losing strategy into a winning one. Just a bigger loser ;-)

Got your point and thanks. 

So, what is your advice? No martingale, no progressive, can try with .01, .01, .01 etc.... ? Is it profitable?  

 
Pankaj D Costa:

Got your point and thanks. 

So, what is your advice? No martingale, no progressive, can try with .01, .01, .01 etc.... ? Is it profitable?  

Well that's the million dollar question!! :-D And there really is no easy answer. It depends on the strategy, your risk appetite, your money management rules, your risk to reward, the probability of a win, a loss and a streak etc etc etc. What martingale and all of the other "betting system" strategies do that leads to disaster is they try to recover your losses while increasing your risk. So it basically throws all of your money management out the window. As I said above, none of these betting systems will turn a losing strategy into a winning one.

Now, I would never do it, but you could incorporate something like martingale on a limited basis with a known risk factor. For instance, you could include in your rules something like, "I will have a fixed 5% risk and I will martingale only to 5 legs" You then work out how much the loss would be if you got to 5 legs and ensure that it is no more than 5%. It does mean that if you keep on winning on the first trade your profit would be lower. But you also have a chance of recovery while still only having a 5% risk.
 
Stuart Browne:
Well that's the million dollar question!! :-D And there really is no easy answer. It depends on the strategy, your risk appetite, your money management rules, your risk to reward, the probability of a win, a loss and a streak etc etc etc. What martingale and all of the other "betting system" strategies do that leads to disaster is they try to recover your losses while increasing your risk. So it basically throws all of your money management out the window. As I said above, none of these betting systems will turn a losing strategy into a winning one.

Now, I would never do it, but you could incorporate something like martingale on a limited basis with a known risk factor. For instance, you could include in your rules something like, "I will have a fixed 5% risk and I will martingale only to 5 legs" You then work out how much the loss would be if you got to 5 legs and ensure that it is no more than 5%. It does mean that if you keep on winning on the first trade your profit would be lower. But you also have a chance of recovery while still only having a 5% risk.

Well,

 "I will have a fixed 5% risk and I will martingale only to 5 legs">>

This is a good suggestion. In this way can control the Martingale system and have chance to recover in the next time instead of loss full amount. 

Thanks a lot for your nice and helpful advice. 

Cheers.  

 
Pankaj D Costa:

Well,

 "I will have a fixed 5% risk and I will martingale only to 5 legs">>

This is a good suggestion. In this way can control the Martingale system and have chance to recover in the next time instead of loss full amount. 

Thanks a lot for your nice and helpful advice. 

Cheers.  

Welcome as always Pankaj :-) Just remember, those systems will always increase your risk without increasing your reward so be prepared.
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