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Thread: Martingale/Progressive Idea that does not "build up" positions

  1. #1

    Default Martingale/Progressive Idea that does not "build up" positions

    Instead of "Building up" positions with martingale/anti-martingale style, how about just closing each trade on it's own applying any EA directional method (with fixed target spacing) but increasing the next trade's size progressively after a losing trade and reducing the size after a winning trade...

    EA trade ************** hedge trade
    0.01, lose ************** 0.01, win
    0.02, lose ************** 0.01, win
    0.03, lose ************** 0.01, win
    0.04, win ************** 0.01, lose
    0.03, lose ************** 0.01, win
    0.04, lose ************** 0.01, win
    0.05, win ************** 0.01, lose
    0.04, win ************** 0.01, lose

    If the EA has 4 losses in a row, throw it away.
    Then the system will at least breakeven when it has 2 winners in a row...
    In this example, lose = 0.13, win = 0.13, it breakeven with only 3 winning trades & 5 losing trades. The hedge side with the exact opposite profit target spacing gives the overall system some extra pips.

    Please share your thoughts on how to improve this or any other modified progressive/martingale system that does not accumulate positions.

  2. #2
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    Quote Originally Posted by scalpmaster View Post
    Instead of "Building up" positions with martingale/anti-martingale style, how about just closing each trade on it's own applying any EA directional method (with fixed target spacing) but increasing the next trade's size progressively after a losing trade and reducing the size after a winning trade...

    EA trade ************** hedge trade
    0.01, lose ************** 0.01, win
    0.02, lose ************** 0.01, win
    0.03, lose ************** 0.01, win
    0.04, win ************** 0.01, lose
    0.03, lose ************** 0.01, win
    0.04, lose ************** 0.01, win
    0.05, win ************** 0.01, lose
    0.04, win ************** 0.01, lose

    If the EA has 4 losses in a row, throw it away.
    Then the system will at least breakeven when it has 2 winners in a row...
    In this example, lose = 0.13, win = 0.13, it breakeven with only 3 winning trades & 5 losing trades. The hedge side with the exact opposite profit target spacing gives the overall system some extra pips.

    Please share your thoughts on how to improve this or any other modified progressive/martingale system that does not accumulate positions.
    Interesting!

    But:
    -only works with very low spreads
    -ranging markets you will have often 0.01 only = losing spread 2 times, or setting the win 0.01 trade to tp (0.01+2times spread = be) maybe never reach it....= pyramiding your trades - this is not an good income
    -martingale with 4 losses in a row is not real in an trending market

    trending market:
    we buy e/u at 1.500, pipstep 25 on day one
    market is falling 200 pips, without reversing on news events
    now we have 8 open positions 0.01-1.28+spread and 8x0.01,7x25pipsloss+spread consuming trades.
    now we must wait for reversal to break even:
    lot 1.28 long 25pips (8x25pips,0.01+spread!) + 8xspread 0.01-1.28 to be, i think this needs minimum an 75pips retracement to be or small win
    if the market is gone further down on day two you wipe your account faster

    as i noted, your idea is interesting but needs very good calculation on pipstep (pyramiding), fixed spread broker during news

    maybe this is an add. idea, starting with
    0.02, lose ************** 0.01, win /0.01 lose +3x spread
    0.03, lose ************** 0.02, win /0.01 lose +5x spread
    0.04, win ************** 0.03, lose /0.01 win +7x spread
    now you have your overall tp calculation to catch the spreads (sum 15)+ your net target profit - maybe you can be or profit with your 1 win 0.01 (wide tp) the spreads(15) and 2x0.01 loosers

    sure your risk is less but your income too, so this is not martingale
    its better you buy a pair and sell an option, this is real hedging

    maybe i have an error, its very late tonight :-)
    cleaning my brain with sleep and think tomorrow further about your idea.

    regards

    IX

  3. #3

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    Quote Originally Posted by ixbone View Post
    Interesting!
    maybe i have an error, its very late tonight :-)
    cleaning my brain with sleep and think tomorrow further about your idea.
    regards
    IX
    Yes, sleep is good.
    This approach is to avoid accumulating position in a fixed direction,
    direction depends on independent bets/signals of EA/strategy...
    and each bet may have 50 or more pips as profit target to avoid spread
    widening...
    It is to discuss further how to improve progressions/martingales
    that does not accumulate positions in a single direction which is bad in trending market..
    For example, how to modify these methods to trading

    The Fibonacci gambling system (eg Roulette, Baccarat) explained and tested
    The d'Alembert gambling system (eg Roulette, Baccarat) explained and tested
    How to Use the Oscar?s Grind Betting System in Roulette | eHow.com

  4. #4
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    Quote Originally Posted by scalpmaster View Post
    Yes, sleep is good.
    This approach is to avoid accumulating position in a fixed direction,
    direction depends on independent bets/signals of EA/strategy...
    and each bet may have 50 or more pips as profit target to avoid spread
    widening...
    It is to discuss further how to improve progressions/martingales
    that does not accumulate positions in a single direction which is bad in trending market..
    For example, how to modify these methods to trading

    The Fibonacci gambling system (eg Roulette, Baccarat) explained and tested
    The d'Alembert gambling system (eg Roulette, Baccarat) explained and tested
    How to Use the Oscar?s Grind Betting System in Roulette | eHow.com
    Well i trade the original martingale manual since 10 years in futures, i love trending markets.

    So you can test your idea by manual, one low vol and one high vol pair

    As you know, martingale is money management and my succes is based on variable pipsteps, which is not easy to code for robots

    i trade:
    ranging markets: pipstep 15 , pipstepfactor 2 = double pipstep + before pipstep = 15,30,45,90,....
    trending market: pipstep 25, pipstepfactor 2,5-3

    ok, i'll try your idea next week manual

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breakeven, broker, closing, fibonacci, hedge, high, how to, low, manual, martingale, news, pips, profit, real, signals, strategy, system, trading

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