Hey there.
In this recent weeks. I have been messing with EA and approach programmers from mql to mechanize my method into binary and I’ve backtested martingale. It ain’t pretty.
Assuming I have $12k to play with and start of modestly with 0.05 standard lot size. During backtesting.
My biggest drawdown for Jan 2015 to current is $500. Which is less than 20%.
Unfortunately when it comes to testing for 2014 and 2013. it was about 50%.
I’ve stop playing with martingale and my trading has never been better. Either my sl is too close. Or my entry is too late.
I’ve never been profitable ever since I stop using martingale. This is what I know.
I do not want to jeopardize my funds by exposing huge capital for small profits. In logic that is stupid.
I’m losing money every single day.
What should I do?
I’ll be blunt. If you’re using a real money account then stop. You’re not ready, and you don’t know what you’re doing.
Keep up the research, answer your own questions and the profit will eventually come.
As for Martingale analysis, it’s a losing game.
Try testing Martingale at the back end of 2008, you’ll blow your account in weeks.
Don’t use martingale, You win twice you lose twice as much. As jezz said thats a losing game! But for you, I would do like Jezz said and keep up th research, Open a demo account and play on that, you lose nothing at all but time. Test you a new stratgey with the demo account and once you traded a couple months and feel you got a strong grip on the market, Go live once proven profitable on the DEMO account. Maybe open a fourm here with your stratgey and see if maybe one of us can find a flaw that might help you improve profitability. The system I was using, I thought I was golden, BOOM blew almost 1k trading, come to find out, i barley knew half the system! Once finishing learning it all made sense, about 6 months later. You should be seeing at least a 2:1 reward risk ration, every 1 trade you win is equal to 2 losses. Look at your whole stratgey when you demo and see what trades win and what trades lose, On BOTH trades, see why they won and why they lose, and keep doing that and you will see where your losers are coming from and what you need to look for for a winner. If you don’t know why one lost or won, feel free to open a fourm with a screenshot that shows the trade, and maybe one of us can answer that! Screen time is the best practice, but look online at courses and discover more ideas, keep working with your system on a demo account, and like i said maybe open a fourm to get inside advice on the system.
Happy trading!
Jason
The process of becoming successfull is sophisticated.
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But in general terms you should start with making with simple rules, that combined will give you a simple trading strategy.
Test it until it works with at least break even results.
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Improve your results by adding/removing filters, adjusting parameters.
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Then move on to trading psychology. Trade on demo before you run out of psychological mistakes.
Now you ready to try your skills on a real account.
Not bad, but also remember to objectify your reason for trading in the first instance. What do you expect to get out of trading in terms of financial percentage gains against your investment, how much time can you invest into learning and what times of the day are you available to trade? Find out about yourself before “just learning how to trade” - building the foundations will ease the entire process.
Just like businesses set out objectives prior to developing a new product or service - trading should be no different. In trading terms, the product or service is equal to your education.