martingale trading system
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  1. #1
    Join Date
    Mar 2017
    Posts
    1

    Default martingale trading system

    Anyone had luck with martingale trading system? I have tried different system, but no luck.

    Thanks

  2. #2
    Join Date
    Jul 2013
    Posts
    2,540
    The Martingale isn't a trading system: it's a staking (in this context "position-sizing") system.

    It's based on a fundamental statistical/mathematical misunderstanding related directed or indirectly to something called the "gambler's fallacy".

    It makes no sense at all to use it in trading.

    Either a method has a genuine edge or it doesn't: if it doesn't, then it can't safely be given one by increasing the stakes after a loser, and if it does, one doesn't need to anyway.

    There's no sense or logic at all in allowing previous results to influence the position-sizing of future trades (other than gently increasing the position-size as the account grows, and/or vice-versa, obviously).

    Edited to add: this is quite a good website with sensible things to say about Martingales (its conclusion is "don't waste your money", and its conclusion is correct).
    Last edited by lexys; 03-20-2017 at 03:28 PM.

  3. #3
    Join Date
    Jun 2012
    Location
    Orlando Fl
    Posts
    1,208
    +1 on everything lexys said

    I have used a limited martingale on a roulette wheel, playing red, just for entertainment, if you get a choppy wheel that is going back and forth between red and black you can make some fast money, but if you stay to long a short losing streak can wipe you out.

    Closes thing I have seen to a martingale in trading is "Dollar cost averaging" works for long term holds in something like an Spider ETF but not something I would want to try with Forex

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