Forexman1972 wrote:

Anpar wrote:First time poster, but have lurked a bit. I've traded this on a small $1k account this week and I'm up $72 trading only EURUSD and EURJPY at .02 a lot (no martingale, meaning no increasing lot size). Going to continue to let it run and see what happens.

Are you using stop losses then?

Pooler wrote:This not a rant--just want to provide some clarity.

The definition of Martingale as per Investopedia. (I underlined the relevant sections)


This not a Martingale strategy as there are no losses. Each trade will always be profitable-no matter how many levels are opened. The reason the lot size is increased with each level is so that your Take Profit target follows ("shadows") the price as closely as possible so you don't need a large retracement to hit your take profit. If you keep the lot size the same for each level than the TP will get further and further away from the price with each level. The secret to this strategy is the logic/arithmetic used to ensure that TP is the same for all trades and is placed so the sum of all the trades will be equal to your profit target. The only weakness is drawdown if you do not apply sensible money management according to your account size. If I had $ 15 000 I'd let this EA run on 15 pairs with the settings as per post 1 and I'll double this account in a year. Then I'll raise the starting lot to .02 and the account will grow exponentially quicker. I've done this on demo but that means zip. I'm also not a great fan of back testing as there many factors you can't replicate in real time.

There are 4 settings you can adjust. Lot size, TP%, Levels (OR) and trading times. Each setting you adjust will have the advantage of hitting your TP earlier but also increases/decreases draw down. I've played around with 100's of different combinations on all the currency pairs and Gold/Silver. What you use depends on your appetite for risk. For eg. You can set lot size the first level at .03 then .01, .02 after that. You can make the first 3 levels only 15 pips each and the TP% 30. You will have a lot of trades hitting TP very quickly but the danger is the one trade that takes off to level 6-7 and then goes sideways before taking off on another run. You cannot close a trade manually because you will almost have a loss (that's the problem).

All pending trades are closed when your trading session closes. Open trades will continue until TP is filled and any pending trades still open will be closed when TP is hit. BUT If a trade reaches TP after the open of a new session then the pending trades will remain until the close of that session. For e.g.--My session is set 23h00-06h00 which opens 1 hr. before Asian and closes 1 hr. before London. If a trade is still open after 06h00 and only profits at 23h30 that evening then the pending (and there is always a pending trade in case price goes to the next level) will stay open until 06h00 the following day. Close it manually and wait for the start of the next session. It's not a huge problem because if that pending is filled it will just start at whatever the lot size is for that level and the EA will work everything out from there. But you don't want a pending trade of .08 (level 8) hanging around as the problem is once again draw down. Currently, the EA is only set at ten levels--I'm going to change it with the next EA because with strategy 2-- the more levels the better and draw down isn't a such big issue any more.

If you don't understand this strategy which the current EA applies then the second strategy I've designed will make even less sense.

Please invest some time with this. I spent more than 18 months getting to this point--but you shouldn't as I started from scratch (and I'm a bit slow)

Regards

Pooler

SWG123 wrote:Baie dankie, ek verstaan nou

Forexman1972 wrote:

Pooler wrote:This not a rant--just want to provide some clarity.

The definition of Martingale as per Investopedia. (I underlined the relevant sections)


This not a Martingale strategy as there are no losses. Each trade will always be profitable-no matter how many levels are opened. The reason the lot size is increased with each level is so that your Take Profit target follows ("shadows") the price as closely as possible so you don't need a large retracement to hit your take profit. If you keep the lot size the same for each level than the TP will get further and further away from the price with each level. The secret to this strategy is the logic/arithmetic used to ensure that TP is the same for all trades and is placed so the sum of all the trades will be equal to your profit target. The only weakness is drawdown if you do not apply sensible money management according to your account size. If I had $ 15 000 I'd let this EA run on 15 pairs with the settings as per post 1 and I'll double this account in a year. Then I'll raise the starting lot to .02 and the account will grow exponentially quicker. I've done this on demo but that means zip. I'm also not a great fan of back testing as there many factors you can't replicate in real time.

There are 4 settings you can adjust. Lot size, TP%, Levels (OR) and trading times. Each setting you adjust will have the advantage of hitting your TP earlier but also increases/decreases draw down. I've played around with 100's of different combinations on all the currency pairs and Gold/Silver. What you use depends on your appetite for risk. For eg. You can set lot size the first level at .03 then .01, .02 after that. You can make the first 3 levels only 15 pips each and the TP% 30. You will have a lot of trades hitting TP very quickly but the danger is the one trade that takes off to level 6-7 and then goes sideways before taking off on another run. You cannot close a trade manually because you will almost have a loss (that's the problem).

All pending trades are closed when your trading session closes. Open trades will continue until TP is filled and any pending trades still open will be closed when TP is hit. BUT If a trade reaches TP after the open of a new session then the pending trades will remain until the close of that session. For e.g.--My session is set 23h00-06h00 which opens 1 hr. before Asian and closes 1 hr. before London. If a trade is still open after 06h00 and only profits at 23h30 that evening then the pending (and there is always a pending trade in case price goes to the next level) will stay open until 06h00 the following day. Close it manually and wait for the start of the next session. It's not a huge problem because if that pending is filled it will just start at whatever the lot size is for that level and the EA will work everything out from there. But you don't want a pending trade of .08 (level 8) hanging around as the problem is once again draw down. Currently, the EA is only set at ten levels--I'm going to change it with the next EA because with strategy 2-- the more levels the better and draw down isn't a such big issue any more.

If you don't understand this strategy which the current EA applies then the second strategy I've designed will make even less sense.

Please invest some time with this. I spent more than 18 months getting to this point--but you shouldn't as I started from scratch (and I'm a bit slow)

Regards

Pooler

Surely this is a form of martingale. And please explain how there are no losses? It is possible to have 15 losses in a row. What happens then?

Anpar wrote:

Forexman1972 wrote:

Anpar wrote:First time poster, but have lurked a bit. I've traded this on a small $1k account this week and I'm up $72 trading only EURUSD and EURJPY at .02 a lot (no martingale, meaning no increasing lot size). Going to continue to let it run and see what happens.

Are you using stop losses then?

No, but I'm using a profit size of 250% per level, taking the approach of "let your profits run".

Pooler wrote:

Forexman1972 wrote:

Pooler wrote:This not a rant--just want to provide some clarity.

The definition of Martingale as per Investopedia. (I underlined the relevant sections)


This not a Martingale strategy as there are no losses. Each trade will always be profitable-no matter how many levels are opened. The reason the lot size is increased with each level is so that your Take Profit target follows ("shadows") the price as closely as possible so you don't need a large retracement to hit your take profit. If you keep the lot size the same for each level than the TP will get further and further away from the price with each level. The secret to this strategy is the logic/arithmetic used to ensure that TP is the same for all trades and is placed so the sum of all the trades will be equal to your profit target. The only weakness is drawdown if you do not apply sensible money management according to your account size. If I had $ 15 000 I'd let this EA run on 15 pairs with the settings as per post 1 and I'll double this account in a year. Then I'll raise the starting lot to .02 and the account will grow exponentially quicker. I've done this on demo but that means zip. I'm also not a great fan of back testing as there many factors you can't replicate in real time.

There are 4 settings you can adjust. Lot size, TP%, Levels (OR) and trading times. Each setting you adjust will have the advantage of hitting your TP earlier but also increases/decreases draw down. I've played around with 100's of different combinations on all the currency pairs and Gold/Silver. What you use depends on your appetite for risk. For eg. You can set lot size the first level at .03 then .01, .02 after that. You can make the first 3 levels only 15 pips each and the TP% 30. You will have a lot of trades hitting TP very quickly but the danger is the one trade that takes off to level 6-7 and then goes sideways before taking off on another run. You cannot close a trade manually because you will almost have a loss (that's the problem).

All pending trades are closed when your trading session closes. Open trades will continue until TP is filled and any pending trades still open will be closed when TP is hit. BUT If a trade reaches TP after the open of a new session then the pending trades will remain until the close of that session. For e.g.--My session is set 23h00-06h00 which opens 1 hr. before Asian and closes 1 hr. before London. If a trade is still open after 06h00 and only profits at 23h30 that evening then the pending (and there is always a pending trade in case price goes to the next level) will stay open until 06h00 the following day. Close it manually and wait for the start of the next session. It's not a huge problem because if that pending is filled it will just start at whatever the lot size is for that level and the EA will work everything out from there. But you don't want a pending trade of .08 (level 8) hanging around as the problem is once again draw down. Currently, the EA is only set at ten levels--I'm going to change it with the next EA because with strategy 2-- the more levels the better and draw down isn't a such big issue any more.

If you don't understand this strategy which the current EA applies then the second strategy I've designed will make even less sense.

Please invest some time with this. I spent more than 18 months getting to this point--but you shouldn't as I started from scratch (and I'm a bit slow)

Regards

Pooler

Surely this is a form of martingale. And please explain how there are no losses? It is possible to have 15 losses in a row. What happens then?

Cmon Mate,

I realise it sounds too good to be true but have you read what I posted at all?

I'll be posting an example of strategy 1 soon. I hope it explains it better as I'm not clearly not using plain English.