this strategy will make many brokers go bankrupt of course if you pick the good time to enter and not be greedy
I like this strategy a lot. I want to use this strategy.
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Outrageous rubbish - MARTINGALE will eventually wipe you out VERY DANGEROUS
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Do you have any data to prove, that martingale will wipe out the account? Or in other words - can you prove, that there is no way for martingale to work?
In my humble opinion, discussion makes sense only if we put some of our knowledge / experience - not just repeating opinions from the web without giving any justification. (ârisk only 2% of the accountâ, âmartingale will wipe out your accountâ, âhigher timeframes are always more reliableâ etc.)
I dare to say, that with proper capital, moderate probability entries (ie. scalping or dynamic breakouts), low leverage, high volatility and broker allowing unit trading this is a totally valid strategy. Without astonishing profits, but working.
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Do your own research on Martingale. I am not repeating âopinions from the webâ, the martingale system is as old as the hills, much older than the web.
In my âhumble opinionâ you are an idiot !
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I suppose the real question isnât do Martingale techniques work, but can you use them effectively in trading. The easy answer is of course not, because like a casino you only have a limited amount of available capital. There are several other reasons why Martingale donât work, but you only need one.
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Without calling ourselves an idiots. Martingale (as most of Forex) is a question of probabilities.
If you start from one unit positions (0.00001 lot) you can double down 14 times before reaching 0.1 lot (with total open position of ~0.16 lot)
Now you need a probability of market changing direction 14 times and not reaching any of take profits. It is small, but non-zero
Next⌠Having above - what is probability of getting 100% profit before going broke with above?
This is gambling, but we need to think about the odds and math behind. Sure it will eventually blow the account, but we can reduce this chance to some extent.
I can only quote Johnny, - lets do our own research.
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It is impossible to apply Gaussian probability assumptions to real markets that are clearly non-normal. Needless to say the frequency of occurrence of fat tailed strings of consecutive losses are far more frequent than what a Normal Distribution would implyâŚso even as a gambling strategy, there are far better progression techniques to apply to stay in the game longer such as Trioplay progressions.
The example given of a a starting sequence of .00001 lot and ending sequence of 0.1 lot demonstrates the negative skew that exists in such a strategy. With a minimum bet of .00001 lot to a losing bet of 0.16 lots, the losers are 16000 times the size of the winners. The possibility of a single loss event (let alone a multiple adverse string of losses) is disastrous no matter which way you cut it.
Martingale progressions as with all negative skewed strategies carry warehoused risk which means the system is prone to future risks of uncertainty. The progression system itself does not eliminate risk. In fact it accentuates the risk carried by the system by increased leverageâŚand for whatâŚa pitiful win of .00001 lots.
The lengths traders go to avoid a risk event. If you cannot handle losses, then you really should not be in the trading game.
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Thank you RichB - I totally agree with you.
Thatâs the kind of reply which makes the forums a valuable place.
Even though markets do not follow normal distribution it is still better model than none (raw opinions).
I donât say that there are no better progression strategies nor that this is a effective one. I just want to encourage some critical thinking.
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Well said.
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No probs wilczasty. The problem with systems such as these progression betting methods is that it encourages a mindset that avoids risk.
Unfortunately the one universal principle that applies to all financial markets is the inherent risk that resides in every trade event. It cannot be avoided. Methods of risk transferrance only create bigger issues down the track.
It is so easy to be blinded by the lure of false promises in this trading game. You need to âcall outâ these blatant window dressing methods for what they areâŚso novices donât fall for traps like this.
They are very painful lessons that can remove your ability to participate in this great game 
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this strategy carries a lot of risk but the higher the risk the more chance to win
the million dollars question is what is the best time to enter and how greedy should we be,
in my pov
the best time to enter is when smart money and brokers are hunting for stop loss = meaning when the herd is following the shepherd (all technical analysis garbage)
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the chance of having my stop loss hunted is greater the having my acc wiped out
check this setting
how many pull backs did the price do
i am trying this on a demo
and i can tell you the psychological and emotional factor is null and this allows me to play the game
as of now the price is pulling back but i am not sweating because i have a pending order set for the counter attack
i use this calculator the do the position sizing
and i have no relation with this site
In my âhumble opinionâ you lack respect and can not handle a civilized discussion
this is not gambling but protecting your assets and playing with their (ssmart money) own game
this strategy carries a lot of risk but the higher the risk the more chance to win
you speak with logic
but the market does not always follow logic
and in forex market and after 4 years of studying this industry
i feel there is a game played out within an other game
I will say if you can not take risks and protect your assets you better look for a 9 to 4 job
thats to be followed
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Itâs a complete load of nonsense. In normal conditions, the markets trade within a range and donât move a lot in a day. If you make your channel small, youâll be opening too many trades and get margin calls. If you make your channel large, youâll likely lose money from swaps and your wins wonât be worth the risk.
Most brokers that are regulated are only offering 30:1 leverage nowadays and more and more are heading this way. Your âwinâ is tiny based on the account size needed to ensure the trade can keep going. If you start at 0.01 lots with an account of ÂŁ10k, trading GBP/USD you only get 8 entries before you run out of margin.
Say you make the zone size 20 pips and close with a profit of 50 pips having made all 8 entries. Your profit is ÂŁ416.50 minus commission, spread and swap. So your profit is less than 4% of the account size, yet 1 more turn the other way and that 20 pip zone has made you at almost a ÂŁ400 loss. Would you really consider that a reasonable risk? More likely youâd need a ÂŁ100k account and then youâve only got 3 more turns before youâre stuck.
Look at this table, youâll soon realise that what sounds like a good idea is completely unsustainable in a ranging (normal) market.
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