I’m new to this forum but I’ve been trading a game account actively with oanda for about a month (and i’ve had the account open for a couple years).
A lot of the systems here seem to mention fixed fraction based money management systems and I was wondering why nobody seems to use Ralph Vince’s Optimal f based systems.
Is his stuff not commonly known or is there another reason?
Or is it just that there isnt any good tools for optimal f based systems?
Im a software developer so I might put together a quick app to calculate Optimal f amounts if there’s enough interest (open source of course, im not peddling viruses).
I’m interested to hear your opinions of Vince’s stuff.
Has anyone done any thorough testing on Martingale money management techniques? I have seen many people try the simple method of doubling your lot size after a loosing trade but obviously this would be very dangerous and your account could get blown out very quickly.
However, what about this idea, instead of doubling your lot size after each loosing trade, what if you developed a system that for example has a 20 pip stop loss and a 40 pip target. In this case you would only need to multiply your next trade size by 1.5 instead of 2. This would allow you to have more loosing trades in a row before you run into a huge open position.
Has anyone tried something like this and what have been your results?
I messed around with Martingale and semi-Martingale MM rules when I first started demoing. They never work! It’s just a matter of time before you hit the losing streak that wipes you out. It might takes years, but it WILL happen.
