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?
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 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:
-coder skills!
-which type of martingale? (open, close, hedged, casino)
-and more money then trading the old school style
my2c
ProFXManager
The martingale EA is very profitable for an adversary of such an EA - i.e. broker.
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).
cant be the same risk like ordinary (closed) martingale because an async open hedged martingale differs completly.
and you are not right with swaps, if you async your lots you can be equal or win (little) swaps!
this is a new safe way to deal with martingale, away from the well known casino martingale which is dangerous without additional security features.
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.
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)
martingales and brownian motion are used in financial mathematics:
http://en.wikipedia.org/wiki/Martingale_(probability_theory)
http://en.wikipedia.org/wiki/Brownian_motion
and this doesnt have anything to do with the well known casino play