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Logic^2
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Author:  squared [ Sun Sep 30, 2012 1:40 pm ]
Post subject:  Logic^2
Hi,

First of all, I am not so good in English since it is not my native language. So, excuse my bad English.

Second, personally I don't like what I am doing right now and I don't know whether I have already violated some terms or not.

What do I don't like? I believe you guessed it. EAs programming requests!

Why am I doing so? Simply, I found this forum is useful and I would like to share a strategy that really work!

... and obviously it is Martingale ... but not a simple one ... it is to the 2nd power ... it is squared :)

Now, this is my request. If you feel that this thread needs to be deleted, please do it. If you are willing to convert this working martingale strategy into EA, I will be so glad to explain every single detail.

regards

EDIT: strategy name is changed.
Author:  Carioca [ Sun Sep 30, 2012 2:13 pm ]
Post subject:  Re: Martingale^2
It should not open the topic here.

Describe in detail your strategy here

Ideas for Possible Automation http://www.stevehopwoodforex.com/phpBB3 ... m.php?f=12

I believe your topic should be moved or deleted.
Author:  NeoTrader [ Sun Sep 30, 2012 2:28 pm ]
Post subject:  Re: Martingale^2
@squared,

I moved your Thread because carioca is right that it is better suited here...

It would also be good to describe your strategy if you want to get any attention for your idea...

happy weekend,

NeoTrader

-
Author:  garyfritz [ Sun Sep 30, 2012 3:17 pm ]
Post subject:  Re: Martingale^2
I'll point out that Steve is not a fan of Martingales, and asked me to analyze them to see if I thought there was any way they could work without risk of blowup. Obviously I didn't test every case that could be used, and I may have missed methods that might work better. But my conclusion was that Martingales don't prevent losses -- they basically just delay them. You get a beautiful straight-line equity curve as long as you're lucky, but eventually KABOOM. All those losses come back to haunt you. If you've been trading the system for a long time and you have lots of profits banked, you might not mind that too badly. But with my luck, I would start trading a Martingale today, and next week it would blow up and half my account would evaporate.

I think you are better off to trade a normal non-Martingale system. Increase the leverage a little if you want to increase your returns, but don't fool yourself into thinking a Martingale improves a marginal or losing system.

See http://www.stevehopwoodforex.com/phpBB3 ... ?f=5&t=547 for my Martingale post.

But go ahead and post your strategy. You may have something new we can learn from!
Author:  squared [ Mon Oct 01, 2012 6:20 am ]
Post subject:  Re: Martingale^2
I know I would get these kind of answers about Martingale system, however, I am pretty sure and confident of my system.

I will start describing.

I have a big list of modification to increase profit without any increase in drawdown. However, they are all depend on the basic idea of Martingale^2.


Setting: what user can modify:

1- Risk
2- Take Profit
3- Candle Length
4- Hours
5- Return Ratio
6- Pip Step
7- Lot Multiplier
8- Number of Unconditioned Trades
9- Number of Candlesticks

Conditions:

1- Hours
2- Pip Step
3- Candle Length


System:

- It works 24/5 on 15 min frame.
- buy and sell in the same time. Lot specified buy Risk. Take Profit specified by user.
- the price goes up and hit TP for buy trade. open another buy with the same TP points
- the price goes up for "Pip Step" points specified by user. another sell trade with the same lot size and combined TP with the previous one. So, two sell trades have the same TP.
- the price goes up and hit TP for buy. open another buy with the same TP points.
- the price goes up for another "Pip Step" points. another sell trades with previous lot size times "lot multiplier". all three sell trades will have the same TP.
- "Number of Unconditioned Trades" is set to be 3 for example. Now, all new sell trades have to follow strict conditions to be opened.
- sell trade number 4 will open only:
--- after "7am" specified by the user
AND
--- if price is more than "Pip Step" measured from the last sell trade
AND
--- if last "Number of candlesticks" candlesticks are not bigger than "candle size". both specified by user.
- this sell trade will have a different criteria for lot size. it depends on "1st return ratio" specified by user. so if it equals 0.5, and the distance between the first sell trade and now is 100 points, that means lot size will be calculated so that if price goes down for 100*0.5=50 points it will hit TP.
- meanwhile buy trades are opened normally and follow the same criteria.
- sell trade number 5 will open only:
--- after "8am" specified by the user
AND
--- if price is more than "Pip Step" measured from the last sell trade
AND
--- if last "Number of candlesticks" candlesticks are not bigger than "candle size". both specified by user.

and so on.

What is the purpose of these strict conditions?
- We don't open trades blindly. if there something that makes the prices goes up for 200 pips in 4 hours, we have to wait until it calms down. That's why you see Candlestick size.
- We don't consume margin blindly. European market is more volatile that Asian one. So we distribute margin evenly. that's why you see hours specifications.
- Buy end of European market, you don't expect price to move 40 pips. and if you have already open your 7th sell trade, you will not be in a good shape waiting the next day. that's why there is return ratio to specify how many return points you need to close everything. the mare trades you open in the same direction, the less ratio and less points movement you need to close your trades.



there is a lot to say and many modification that double and triple profit. but, this is the basic system.

please let me know if you have any question or comment. I will try my best to answer it.

thank you.
Author:  glabbeek [ Mon Oct 01, 2012 7:59 am ]
Post subject:  Re: Martingale^2
You are loosing me a bit after step 7, but as far as I can see I don't think it will work.
For each pip profit that you take, you've got a pip loss on the opposite open trade. Also in a market that is choppy you will loose a lot of money on the spread, or commissions.

As I said, you're system isn't completely clear to me, so maybe I'm wrong. the problem with martingale systems is that they give you a misplaced feeling of security, which often lead to position over seizing. Good money management en risk control can do a lot more for you.
Author:  squared [ Mon Oct 01, 2012 9:36 am ]
Post subject:  Re: Martingale^2
glabbeek wrote:You are loosing me a bit after step 7, but as far as I can see I don't think it will work.
For each pip profit that you take, you've got a pip loss on the opposite open trade. Also in a market that is choppy you will loose a lot of money on the spread, or commissions.

As I said, you're system isn't completely clear to me, so maybe I'm wrong. the problem with martingale systems is that they give you a misplaced feeling of security, which often lead to position over seizing. Good money management en risk control can do a lot more for you.
then, I did not explain it in a good way.

you are not loosing anything. yes, in the previous example, buy trades are making money, while sell trades are waiting a "return" to make money also.

please let me explain and elaborate any point you think you did not understand.

I agree with who says that Martingale WILL blow up your account. However, If I back-tested my ea for 10 years and it didn't, I would happy accept a blow up in the future.
Author:  Carioca [ Mon Oct 01, 2012 2:26 pm ]
Post subject:  Re: Martingale^2
squared

I did not completely strategy

I think you should rename the topic and its strategy not only martingale might call more attention, Martingale ^ 2 and not a good name
Author:  squared [ Mon Oct 01, 2012 5:30 pm ]
Post subject:  Re: Martingale^2
Carioca wrote:squared

I did not completely strategy

I think you should rename the topic and its strategy not only martingale might call more attention, Martingale ^ 2 and not a good name
how was that ? :)

I am waiting for more questions to have this strategy explained well.
Author:  gaheitman [ Mon Oct 01, 2012 5:49 pm ]
Post subject:  Explanation
squared wrote:
Carioca wrote:squared

I did not completely strategy

I think you should rename the topic and its strategy not only martingale might call more attention, Martingale ^ 2 and not a good name
how was that ? :)

I am waiting for more questions to have this strategy explained well.
I think you need to pick a chart, draw some lines with actual entries, and then let us ask some questions.
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