you may want to help yourself and google a bit of how martingle sequence works.Hello,
I am not experience with martingale system, I see many ea that use this and show good result in the myfxbook. But read that this will blow account in one day soon?
Can anyone make comments?
sensible words, and why I found many trading performance are always equipped with lot increasement method. I often reading similar thought of huge risk while doing martingale sequence. but to be honest, most profitable traders are also use same method . found some interesting result at ff, while some account perform well while apply martingale trap EA. and good thing is he keep these pace for over 3 months at single broker account, and why I said interesting he use same trading platform Tickmill, while I still found difficult to implement same method on mine. and I totally agree the risk are account got wipe out clean, especially when do the double lot increasment as you mention.you may want to help yourself and google a bit of how martingle sequence works.
first, martingle are not trading system to begin with, it's widely used at gambling purpose or horse race. double your bet each you got losing result.
at trading activity, does similar way, for example you trade at GU, first BUY entry goes with 1 lot, suppose your order got negative condition, you put another Buy at 2 lot when the first entry shown -50 pips, it keep going that way for each 50 pips negative count from the last entry level. while exit level for all active order is 50 pips count from last entry trade.
in short the lot sequence is 1,2,4,8,16 ... so on.
reason why many ea use this system because it's good for marketing purpose if the ea result shown an explosive performance. martingle system give a fast profit result but also had a high risk to blown up your account.
I was contacted by ironfx in regards to their mirror product and they spoke to me about his martingale EA. They also told me that I am allowed a 100% sharing bonus on one of my accounts which makes it sound too good to be true. I haven't opened an account yet because I am reviewing some other products they have but this one looks good. What is your experience? You posted this a while back so have you done any more trades? Any profit/loss?I use a reverse martingale strategy with a mirror product that ironfx are providing and I can honestly say that it is one of the safest strategies I have ever used. It is simple, I combine my reverse martingale with hedging and I am making a good return on my trades. It also helps that I am given a bonus in one of my accounts.
The martingale EA is very profitable for an adversary of such an EA - i.e. broker.NO, because "ANY" in your question!
If you correct your question in "SOME" then YES!
because martingale EA depending always:
-which type of martingale? (open, close, hedged, casino)
-and more money then trading the old school style
if you trade a async open hedge martingale, you'll be always safe, it isn't the often associated martingale cash cow, but stable and reliable recovery, except your account lacks of equity.The martingale EA is very profitable for an adversary of such an EA - i.e. broker.
cant be the same risk like ordinary (closed) martingale because an async open hedged martingale differs completly.Thank you for an explanation, but it appears that this strategy poses the same risk as the ordinary Martingale system. Additionally, it costs more in swaps and spreads (closing the initial 0.2 buy is cheaper than opening a hedging 0.2 sell in terms of swap and spread), and also requires more margin (for brokers that do not support zero margin hedging).
You are yet to show how is it different in its effect on the bottom line.cant be the same risk like ordinary (closed) martingale because an async open hedged martingale differs completly.
Let's take, for example, +1 swap on long and -1.1 swap on short.and you are not right with swaps, if you async your lots you can be equal or win (little) swaps!
Unfortunately, it is not. It is just another way to lose unless you are infinitely rich.this is a new safe way to deal with martingale, away from the well known casino martingale which is dangerous without additional security features.
sorry I wrote "async open hedged martingale"!You are yet to show how is it different in its effect on the bottom line.
Let's take, for example, +1 swap on long and -1.1 swap on short.
Here is the math:
In normal martingale: you had 0.2 long and closed it. Opened 0.4 long in its place. You will be getting +0.4 swap.
In your described "open hedged martingale": you had 0.2 long, which you decided to hedge with 0.2 short instead of closing, and open additional 0.4 long. You will be getting +0.38 swap total.
0.4 - 0.38 = 0.02 loss on swaps.
Unfortunately, it is not. It is just another way to lose unless you are infinitely rich.
You have just described why it is worse than simple martingale strategy when a trader would just close the original 0.2 buy out and open only new 0.4 buy (better, just open additional 0.2 buy, without closing the original, but that's a minor detail). 0.4 buy would be earning +0.40 swaps vs. +0.38 swaps in your case. In all else (except higher margin requirements and more spread losses) your async open hedged martingale appears to be the same as the normal martingale.sorry I wrote "async open hedged martingale"!
async: the positive swap side sum is higher or equal then negative side, to equalize, or win swaps!! which means your positive swaps lots must be in relation higher then the negativ swap orders.
we start buy 0.2, market drops, we open, lets say after 100pips
new buy 0.4, new sell 0.2
sum open orders:
0.6 buy = +0.6
0.2 sell = -0.22
sum 0.6 - 0.22 = +0.38 swaps, worst case to wait till yor swap give enough profit to breakeven, but normally you can close all orders after 30-50pips retracement (depend on pair)
Both theories (even if you assume their validity for Forex market, which is very doubtful) do little ground to what you describe as async open hedged martingale. What you are looking for is called reversion to the mean, and its validity in Forex has not been proven too.martingales and brownian motion are used in financial mathematics:
and this doesnt have anything to do with the well known casino play