Syarief Azman Bin Rosli / Perfil

this is EA BU v1.62 

Firstly, it's important to understand how the martingale strategy works.

This is the fundamental concept:

Martingale is a technique that practically guarantees profit.

Let me emphasize this: It practically guarantees profit.

But it also has the potential to lead to significant losses (this is subject to debate depending on who you ask).

Why both profit and potential losses?

Because martingale relies on the principle of doubling.

As for price movements:

a) What goes up must come down.
b) What goes down must come up.

This is a fact.

So, using martingale, you simply alternate between entering Sell and Buy positions, increasing your lot size incrementally. Start with 0.01 lots, for instance.

If the price moves in your favor and hits the Take Profit (TP), you gain a profit of 0.01 lots.

But if it goes against you (and this is where it gets interesting), you increase the lot size:

0.02 lots, then 0.04, 0.08, 0.16, and so on, doubling each time.

At this point, your floating loss is manageable, but if it hits TP, you make a significant profit.

Now, if you keep going against the trend (I use a multiplier of 2.0x for simplicity), you'll eventually reach 0.32, 0.64, 1.28, 2.56 lots, and so on. This is when you could take a break, maybe even visit a nearby mosque for a special prayer. If your margin is around 50% at this stage, be cautious because...

Why cautious? Because 2.56 x 2 equals what?

5.12 lots!

At this point, your margin might be at 80% or 90%, or if your leverage is 1:500, you're in trouble. You might face a Margin Call (MC).

If your leverage is 1:1000, you might be able to add one more layer - 10.24 lots, but with a 2.0x multiplier, it's almost impossible to do so.

That's why I say higher leverage might be better if you're running martingale.

Now, regarding your question about Take Profit (TP):

Once you understand how martingale works, you know it leads to MC when the lot size becomes too large, or if the price trends to the point where you can't cover it anymore.

In such situations, you have three options:

1) Pray and seek forgiveness from Allah while hoping your capital stays safe (because at this stage, if you hit TP, you could become quite wealthy due to the large floating lots).

2) Cut losses. Typically, this decision is made early in the floating process. Some EAs decide to cut losses based on the dollar amount floating.

3) Top-up! If your initial capital is $10,000, you should increase it to at least $20,000 (minimum). Ideally, triple it because martingale relies on doubling. So, reaching $20,000 in capital can happen quickly.

Failing to follow any of these options could result in you crying on your bed or being chased by your beloved spouse with a gas cylinder because your money is gone - MC in forex terms.

The essence of profit in martingale lies in price movements. When prices go up, they eventually come down. So, if you start with 0.01 lots, your profit is equivalent to that.

But if you open 10.24 lots earlier, you might be able to go for a special prayer if it hits TP, and with a deposit of $100, also known as $10,000 cents, you might even afford McDonald's for a month, maybe more, if you're lucky.

To play it safe, aim to keep your lot size open at a margin of around 20% to 30%.

Now, as for TP:

It depends on your EA, but martingale tends to have significant floating losses when it goes against the trend. To make it look positive, you need to set a price for break-even.

In martingale terminology, this is called the Break Even (BE) point.

BE means the price is neither in profit nor in loss - it's at 0.00. This is when you're in a state of BE.

Your TP should be set at 4 pips from this BE point. In this way, you hope for daily profits (sounds great, doesn't it?).

So, this is the most basic understanding of using this EA. To find the right settings, you need to know when your EA might experience MC.

When does it MC?

The answer lies in when the price trends but the EA has opened large lots.

So, how can you avoid MC?

The answer to when it MCs will give you insights into how to prevent it. Right? But, I like to make things simple, so here it is...

There are many ways to avoid MC. MC occurs when the price trends, but your EA has opened large lots. So, how can you prevent your EA from opening large lots?

First, control your lot size as much as possible. Keep it small. If you can't decrease the lot size further, increase your capital. Turn $100 into $200 or $300 (at least). With a deposit of $300, running a 0.01 lot is unlikely to lead to an MC.

Second, because you can't avoid price trends, you can try changing from a 15-minute timeframe to an hourly or four-hour timeframe to ensure your EA doesn't open positions against the trend.

Now, how do I personally use this EA?

I have a rather complex approach because I consider the direction and set stop levels.

In essence, my approach is to predict (and it's just a prediction, mind you) which way the price will trend for the week.

It's quite simple. I check the EURUSD pair on the weekly and daily candlestick charts.

If I see a long candlestick pointing down on the weekly chart, I set the EA to Buy only for the next week. 😘

If I see a beautiful doji candlestick on the weekly chart, I set the EA to Sell only for the next week. 😘😘

If the weekly chart is confusing, I look at the daily chart. If it's sideways, I practice what I call the "Eternal Tranquility and Peace" technique. It's straightforward - turn off trading for that pair and look for another. 😘😘😘😘😘

The second technique I recommend is Fibonacci.

At Jaguh Academy, there's a guy named Hafiz, or you can ask Brother KFC. He's quite skilled in this. There's a method called Fibo EoT.

When I'm in a tough floating situation, I use EoT.

EoT is also what I refer to as "Inverse Fibonacci." Look at the levels after 100.

There's the 261.8 level, and there's another level that I can't recall off the top of my head. I don't want to fiddle with my MT4 settings to check.

Two levels:

The first one is the top-up or first cut-loss level.
The second one is the special prayer level.

261 marks the point where the price often stalls. Here, we hope it'll

hit the BE + 4 pips.

But what if the price continues? Look at the price. If you think it might hit that last level (I forgot the number), that's also where I expect it could hit BE + 4 pips.

Finding how to draw this EoT Fibo has three (or four) options...

1st, Google is your best friend! But it can be a bit challenging to find. Try searching for "Fibo end of trend" and see what comes up.

2nd, look for Hafiz at Jaguh Academy. Humbly ask him to teach you Fibo EoT.

3rd, search on YouTube for "Fibo reversal." This method is the one I recommend because it's relatively easy to grasp how to draw the Fibo.

The fourth way... come to Penang, I'll treat you to a meal. I'll teach you in person if there's no second wave of the pandemic. We can resolve your issues (depending on my willingness).

Wait... Penang is far, right? Even Taiping is fine.

Meeting me in person has two benefits. First, I can teach you face to face. Don't worry; I'm not promoting copy trading, and I'm not involved in affiliate marketing. 😂😂😂

Even if you arrive late, it's okay because I like making sweet promises.

I'm afraid when you reach Penang, I might be too reluctant to meet you. 😂😂😂

You might need to rent an Audi S5 if you want to meet me.

Meeting me in a Viva would be embarrassing, right? Traders don't drive Vivas, do they?

But seriously, in the old days, forex traders were quite modest. My friends drove Wira, Waja, Kancil, and when I asked them why:

- "Is it wrong to show off when you succeed? If you don't show it, people might think it's a scam."
- "Knowledge is important, but proof is necessary, bro."
- "Zuhud (detachment)."

Then came the era of LiteForex, and suddenly there were Audi S4s and BMW E90s... wow.

When I asked the same question, they responded:

- "Is it wrong to show off when you succeed? If you succeed, a little flaunting is okay."
- "Knowledge is essential, but you need proof."
- "Zuhud is about what's in the heart, not about what you drive. It's about not being affected. It doesn't mean you can't enjoy."

Okay, done for today. Good luck with your trading, bro...

#ForexTips #EABU

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Risk Disclaimer:
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. High leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk tolerance. There is a possibility that you may sustain a loss of some or all of your initial investment, and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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