Developing a system #9 (Grids, martingale and hedging)
Submitted by Edward Revy on November 12, 2008 - 08:38.
Submitted by Dachel Miqueli
OK guys here is another system based on grids, martingale and hedging LoL. May sound crazy but is working nicely.
I'll try to explain in a few steps in order to avoid confusion so if there is still questions at the end read again LoL (just Kidding) Ask whatever you want.
Just to make clear.......I'm using this strategy on a demo account and I'm buying Micro lots, you will see why.
1. Open GBP/JPY any time frame (I prefer 5 min)
2. Look for an opportunity to enter long or short (this part is not so important as long as you catch some pips for yourself)
3. Let's say that your prediction turn against you and run by -50 pips (let's assume that you were short)
4. Now we buy 2 Lots and we are going to keep the other position opened.
The goal now is to close all the positions when the price goes +50pips up so you end in Break Even
If everything happen as described you will now go long after you close everything
If it goes against you....REPEAT
5. If the price returns to the short entry we are now losing 2 Lots from the buy and then we place another short order of 3 lots and so on until goes up or down by +50pips and then you close all the positions in Break Even.
The lots sequence is: 1,2,3,6,12,24,48,96....
This sound scary but I've been successful for 3 weeks without panic. I know a micro lot is not too much money but consider that I have a deposit of 1000 in my demo account and in this 3 weeks I have earned 300 dollars which is 30% ROI so I have increased my account considerably with this method. I choose this pair because his volatility, is weird to see the price stock in a 50 pips range for too long. My max bounce is 7 so far but I've been checking in the past and still haven't seen 8 bounces (could happen). Anyways this is still on development so any suggestions or help is welcome.
By the Way....I want to remind that this is a system under development so please try to improve, research and help to develop.