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Developing a system #9 (Grids, martingale and hedging)

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.

Dachel Miqueli
dachelm@yahoo.es


http://forex-strategies-revealed.com/


To use this strategy lots of money will be required to put at stake.

i traded this system before on my real account using microlots and believe it or not it will blow your account sooner or later. it surely blew mine. forget this strategy and search for a better one with good risk/reward ratio. that's my advice for you my brother trader from my live expereince. happy trading to all of us.
dr.fawwaz

Hi friends,

I agree with you Dr.fawwaz. Forex trading is not about gambling and martingale is a strategy which is used in casino for gambling.
Even the person who has millions of dollars in his account should not try this strategy because it is VERY VERY RISKY.
This strategy has no strong risk management method and therefore we should avoid it at all cost.
I want to say thank you to the person who has submitted this strategy.

Hello Guys:
I'm the one who submitted this strategy. I'm writing to let you know guys that you are absolutely right. I've been trading for 3 years now and trade another system which is very effective and profitable based on all the concepts, nice winning/losing ratio and good money management. I Know exactly what are you trying to say here and I'm glad you worry about the others, now consider this because is my point in all of this.

I know that in someway this method always blowing your account but that doesn't mean that you put all your money in the account, for example..... Let's say you start with $1000 deposit and you could do the 100% ROI monthly (this can be achieved easily with the method), you will not compound in this case, then you will withdraw those $1000 you make that month and start all over again but still with $1000 in your account, in theory you should have 3 month straight or more because I've never seen this method losing but I'm sure it does at some point. So with this said you should understand that If you lose 1 month and win 2 is not a good ratio? It is true that you blow your account but you still have money right. Well That's my point.

Any opinions would be very appreciate, and again thanks for your concern.

Dachel

Hi Dachel,

I like your idea about 100% ROI monthly and then withdrawing the original amount and starting over again.
In that way this system is very safe.

Happy Trading
Regards,
Arsalan.

#The lots sequence is: 1,2,3,6,12,24,48,96....#

Try this lots sequence instead of the Martingale:
1,1,2,3,5,8,13,21,34...... (Fibonacci)

SL 50 Pips
TP 100 Pips

Yes, this is gambling. ;-)

HI Dachel

Just wanted to know how this strategy is working out for you after a longer testing period?
Is it still working or have you blown your account like some of the other traders predicted?

Looking forward to your reply

Shawn

Still working with out blowing my account, the only problem is to stay 24h in front of the PC LoL. I've been trading as much as I could but still not 100% ROI because of the time. I even backtest every day how the night did and still nothing, not a single boom.

Dachel