EURUSD M1
It’s about taking profit many times and getting it going again.
Welcome to Doctor Martingale
Thanks, a good day to you too.
From a serious point of view, that equity curve looks like a martingale approach - so to be blunt you will definitely have a period of constant growth, followed by a destroying blow out. That’s the compounding and doubling down approach that is native of all martingale and hybrid approaches.
You’d be wasting your time trying to solve this - it can’t be solved from a mathematical point of view.
You’re 100% guaranteed to lose everything - if this is the case, which it certainly looks like.
Oh, and this has been proven with 100% certainty.
What you say is true. But I see it differently, when the system has gained a small percentage I close all the trades. Then I restart the system from the beginning.
For the system to gain a small percentage after a loss it means you have to start the ‘martingale’ approach of doubling down - which eventually means you will get a string of losses big enough to wipe you out from a exponential compounding point of view (this is shown on your attached equity curve in post #1) This isn’t me running my mouth, for once, it’s just proven statistics.
But good luck.
A simple mathematical fallacy.
Googling the phrase “The Gambler’s Paradox” and reading the pages of the first few listed results may enlighten you. At least, I hope it will.
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What you’ve descried is a permutation of a Martingale system. I think it’s probably better if you run with this idea for a while and learn yourself, it’s more effective that way rather than being told the inevitable answer. Also, if you’re the ignorant type like I also am, then this is a great way to bypass listening to others; as I too learnt.
By the way, being ignorant is the best attribute you can have in this industry, in my [ignorant] honest opinion.
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@dacd
i completely agree with @RISKonFX
Mathematically speaking (and i love my maths hehe) this is a losing formula
Martingale only works in 1 scenario…
if you have an UNLIMITED BUDGET, and I MEAN… “Unlimited” Literally (which no one has)
the Negative Exponential decline will wipe you out,
This strategy is used in casino’s, by Casino’s to get the player thinking they can win if they get out early
it’s a big part of how casino’s actually make money
hence, they understand that the formula is in their benefit , not in the players benefit.
trying to fight it is a losing battle, I’ve tried