Hedges and Martingales an explosive combination

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Hi traders, i´m an EA systems developer and been trading and developing mql4 since last year.
 My first EA was a hedged martingale system that seems to do very well, but... unfortunately not forever.
It was good to me to test and understand how a system work, and after that... i´ll never use martingales in my systems.

Some traders believe that can recover losses using martingale, but what you simply do is limit your profits and rise your risk to the moon!! until your account explodes.

Hedged grid system with martin is a waste of time, is a system that goes wrong by nature, let me explain why:

- If you use hedges effectively, forget about sl´s and tp´s, you´re based on the ranging price action of the chart.
- Your risk is based on the price move, so you need space for the price to run the grid.
- When using martingale you shorten your space by increasing your lot.
- Think about the graphic chart, if you double the lot, the chart shortens until you can´t see anymore.. just vanishes so your account.

Just a simple math explains : (ticks to run) = lotsize / (price range), the ticks won´t change so your price range goes to zero leading your lotsize to infinite...

Thanks..

Luiz Godoy
 
Luiz Godoy:

Hi traders, i´m an EA systems developer and been trading and developing mql4 since last year.
 My first EA was a hedged martingale system that seems to do very well, but... unfortunately not forever.
It was good to me to test and understand how a system work, and after that... i´ll never use martingales in my systems.

Some traders believe that can recover losses using martingale, but what you simply do is limit your profits and rise your risk to the moon!! until your account explodes.

Hedged grid system with martin is a waste of time, is a system that goes wrong by nature, let me explain why:

- If you use hedges effectively, forget about sl´s and tp´s, you´re based on the ranging price action of the chart.
- Your risk is based on the price move, so you need space for the price to run the grid.
- When using martingale you shorten your space by increasing your lot.
- Think about the graphic chart, if you double the lot, the chart shortens until you can´t see anymore.. just vanishes so your account.

Just a simple math explains : (ticks to run) = lotsize / (price range), the ticks won´t change so your price range goes to zero leading your lotsize to infinite...

Thanks..

Luiz Godoy

HI

i disagree with you. still can have such this profitable ea.

your opinion is not true at all. i have my first ea ( you can see it ).

and i have an another idea just use this system ( martingale ) with less DD. and more profitable. i currently work on it.

===============> so can have good ea with this method.

but it is not the best method , i have more better idea i will develop in my 3th ea.

 

All depends on many parameters, for example available capital, trigger levels, lotsize etc.

Martingale with 0.01 start Lot is something entirely different then martingale with 1 start Lot.

Please do the math.

Saying that something is this or that by default is just so narrow minded.

One small unexpected addition to a system can increase performance many fold !

This guy left some clues for y'all to find.

 
Mehrdad Shiri:

HI

i disagree with you. still can have such this profitable ea.

your opinion is not true at all. i have my first ea ( you can see it ).

and i have an another idea just use this system ( martingale ) with less DD. and more profitable. i currently work on it.

===============> so can have good ea with this method.

but it is not the best method , i have more better idea i will develop in my 3th ea.

Can i at least check it for a backtest ? 

 
Marco vd Heijden:

All depends on many parameters, for example available capital, trigger levels, lotsize etc.

Martingale with 0.01 start Lot is something entirely different then martingale with 1 start Lot.

Please do the math.

Saying that something is this or that by default is just so narrow minded.

One small unexpected addition to a system can increase performance many fold !

This guy left some clues for y'all to find.

Sure, what you mean? What math ? I just said that the lots are inversely proportional to your chart space.. am i wrong ? So as long as you increase your lot size is like to shorten the size of the chart.

Thanks... anyway who´s is this guy ?  

 
Luiz Godoy:

Can i at least check it for a backtest ? 

forward test is more better than the back test.

 
Luiz Godoy:

Sure, what you mean? What math ? I just said that the lots are inversely proportional to your chart space.. am i wrong ? So as long as you increase your lot size is like to shorten the size of the chart.

Thanks... anyway who´s is this guy ?  

His name Pythagoras.

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