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.
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This strategy DOES work, i've researched & traded it many years now. you need VERY small lots, trust me it does work but the lots have to be EXTREMELY small, to the point of being ridiculous. I use 1 nano lot (0.0001SL!!!!) for each $1000 in the acct. I trade this with an EA on 5 pairs & gives me a steady 5% monthly. DD can go to 30%, but it's ALWAYS settled & the risk is under control. I turn it off in periods of EXTREME volatility & trade manually after the EA doubled the lot size 6 times. Good luck!
how about reverse condition OP?
Try this. At the start of the day, set a buy pending order 25 pips above price and a sell pending order 25 pips below price with a 25 pip stop loss and profit level. If the buy order is triggered, close the sell pending order and vice versa. Close the trade if you reach 25 pips profit and resume at the start of next day. If you get stopped out, open another trade in that direction doubling up the number of lots. Keep Martingaling till you reach profit. Use EURUSD for low spread and start with 0.01 lot. Very steady profitable strategy. Backtest it with the last two year data, you'll see. You could also chose to stop trading when the risk gets over 10% of the capital.
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