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

What if instead off blowing your account you limit the number of bounces, say 5 or 6, take the losses and go on with the game, hoping for a favorable win ratio?

it's called the martingale system. the bigger ur balance the longer it is sustainable.

Hello everyone and a Merry Christmas.I have a very high strike rate trading forex and as i double up my stakes (anti martingale)when i hit a loser i get wiped out.The question is Martingale system does work with or without being adapted but what is it called when the big money people start to lose money and they re invest, is this not a martingale system perhaps it has a different name.

The markets are not random (rather, they are chaotic statistical fractals), but entering them randomly will give you random results. Assuming that you have a 50-50 chance of profiting with a random entry with a take profit of x pips and a stop loss of x pips, the spread will eventually get you, thus essentially making this a roulette spin betting on red, black, odd, or even. When applied to a more sound technical strategy, the Martingale method in actuality does not increase ROI, it only increases win ratio; this is because you will inevitably take too large of a hit for your account to handle (yes, 20 losses in a row happens).

The Martingale method is an anathema of money management, and should be avoided due to its fundamental flaws.

There are lot of EA (expert advisors ) of different martingale method Firebird, Terminator, Blessing, Goblin to name a few. You can use it but is dangerous. If you interested try forex-tsd.com.

Regards,

Andrew

i am using the martingale strategy too along with my own strategy so that makes it lot less risky for me. i trade on the one hour candle stick chart on the eur/usd. when i think the next candle will be a bear candle i start off with .3 lot with a stop loss of 25 pips above. so if the next candle is a bear candle i take my profit if its a bull candle. Then i double my lot on the next hour candle to .6 lot. When the market has been going up and there has been like 3 bull candles already you know that the bear candle is about to come because if you look at a chart there are hardly more than 6 bull or bear candles in a row.

Hello:
Vikram Sachdeva

Thanks for writing, the bad news are that my account blows up :( BUT......I have faith in this strategy so I've been researching and making some calculations in order to make this strategy work. And I'm still on it. REMEMBER that this is an "under development" section. My account blows up because I was trying to get 100% ROI in a month with 5000 so my initial entry was 5 micro lots, allowing my account to stand up to 8 bounces. If you try this with 1 micro lot instead It will allow your account to support more bounces.

I will post any update ok?

Stay tuned

Dear Dachel,

Its been a wonderful strategy come across,
i was trying for this kinda strategy for last 2 months, but getting wrong at a very small point

i was opening one long and one short at the same point and was trying to hedge it, but could not succeed with results, you strategy is awesome and as i read in upper threads,

I strongly think it will never blow up your account if dome with proper balance, your trade should go max up to 7 fold in 50 pips but you should have enough money to touchdown at least 10 folds

Can you please let me know, what are the lot sizes and account sizes you are using

Regards

Vikram Sachdeva

A quick Update:

I have now 5930 and still growing up. I was awake until 5:00am est I set up my alarm to sound at 8:00am est to keep trading but I miss it LoL. Since that time if I were up I would catch $350 (700pips) But I woke up at 1:00pm so I miss the chance. Keep tuned in

DR.FAWWAZ:

I appreciate your comment but you are probably missing something here since I make money if the market trend and loose money while is ranging. I'm consent that this method will blow your account sooner or later, we all have to be prepared to assume looses, but as I explained before.....When I make 100% ROI I will withdraw that and keep trading with the initial amount. I never spend too much time with this method, I only backtest some previous months and I realize that I could do much more than 100% without blowing my account so what Im doing now is trading this month in a demo account to see some real results. If I get 100% each month and my account blows in the fourth month I should loose my initial investment but I still have 3 time that amount.

Got it? I hope so. Anyways Im just testing ( is better than speak about something and do nothing )

Cheers

Dachel

in sideways markets it will work and you will have a month in which you can acheive 100% R.O.I but if the markets trended for 2-3 months it will blow everything(TRUST ME)good luck
DR.FAWWAZ

Good luck!
Curious about results

I started yesterday a demo account on FXCM and I will try to spend all the time possible to see the results at the end of the month. By now I started with $5000 on a micro and my goal is to reach 100% ROI before my account expire, I have one month to do this. I will post my progress as I can but I will upload my statement in the end. Wish me good luck.

By the way I got 500$ since yesterday night (in 24 hrs)

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

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