I use martingale for some months…
currently its ok.
do you have an experience with martingale trading system?
I use martingale for some months…
currently its ok.
do you have an experience with martingale trading system?
That’s no question of belief or experience. It’s simple math. Martigale, d’Alembert or similar systems all reduce the profit in the long run.
Their theory is that your chance to win increases after you lost. But it won’t, on the contrary, strategy results are often autocorrelated, so after you lost a trade, there’s a better than random chance that you’ll also lose the next one. That means you lose more on average when you increase the trade size after a loss.
Extreme Martingale systems, such as doubling the size after a loss, always get your account wiped. This is mathematically unavoidable. The only question is how long it will take. It can be a year, or it can already happen when you start trading. Until that happens, your profits will be much better than without Martingale of course. So the longer it takes, the more you’ll lose.
Martingale systems have only two uses: When you want to sell a robot or EA, such a system can make the backtest look much better. And in some rare cases when strategy profits are strongly autocorrelated, an Anti-Martingale system can indeed increase the profit.
Using a Martingale gives you exactly NO statistical advantage over not using a Martingale.
The odds are exactly the SAME if you use a Martingale or do not use one.
The idea is to find a system that has a high WIN RATE!
Michael
finally, I prefer a system that has a high rate or return to a high win rate.
Example:
High win rate could be at 1 pip/trade average, with a 90% winning rate
High rate of return could be at 100 pips/trade average with a 30% win rate.
10 trades on the high rate of return system are going to take me far less time than the high win rate’s 1000 trades needed for the same result. I value my time too much to want a high win rate in this situation.
If I could combine both, then great, but the higher pips/trade to me has far more value than the higher win/trade
You shall get what you asked for. Here’s a system with a 95% win rate - it works in all markets:
function run()
{
Stop = 100*PIP;
Profit = 5*PIP;
if(random() > 0.5)
enterLong();
else
enterShort();
}
Are you tested Big Martingale system? The profit potential is growing with every step. My favorite system is a system based on the Fibonacci sequence. Generally I use the PlayBets Casino, which calculates the rate for me. A mistake by the game system is not difficult.
Martingale can, in fact, work. The thing is, however, that it requires an infinite amount of money to actually be guaranteed of coming out of ahead. So, when you have amassed an infinite amount of money, by all means, give it a go. If you already have an infinite amount of money, why would you bother?
If you do not have that amount of cold, hard cash lying about then you will eventually lose whatever you do have.
Is this the same thing as the Martingale Strategy?
Yes, but it’s even an exceptionally dumb Martingale system. With the “basic strategy” advertised by that guy you have a 100% guarantee to lose all your money.