Different channel martingale

[fafajuju]

Hello all, I've just came across a different kind of martingale which uses a defined channel and the profit is made when prices breaks through this channel ; the risk and the martingale tool kicks in if the price ranges inside the channel bouncing.....

Martingaling a self-defined breakout - EA needed - Forex Trading

 

[fafajuju]

I've been trading this system manually over the last 8 months successfully. I only trade breakouts with it, mostly opening London and opening USA, low volatility pairs and small TP/range.
I believe that with an EA and proper money management (using micro lots) it would be possible to get close to 4% ROI monthly (bouncing up to the 9th level as a cushion), or 2% ROI (if bouncing up to the 10th level). Personally, the max # of bounces that I experienced in these past 8 months was 7 bounces and the loss in the worst case scenario would be anything around 10% of your investment.

Lets say 10k to start, 0.01 lot you would get 400/month, in the event of a worst case happening (lets say your cushion was 9 levels and the 10th level is reached) you would lose close to 1K (or approximately the equivalent of 2.5 months of profit).

Just remember that 4% ROI per month is a lot (more than 48% a year...) and that I've just been using it manually ( with an EA it would be possible to check for better parameters and win/loss ratios backtesting the strategy.

Just check the link in the previous post and see if this strategy suits you.

 

[everyonerich]

anyone able to write the EA so that just turn it on before news?

 

[fafajuju]

I've been using these: buy 0.1/ 0.6 / 2.4.....
and sell 0.3 / 1.2

In that way I make profits both ways when it breaks the channel instead of just breaking even...

 

[Hoggums]

Look up martingale and gamblers ruin in wikipedia.

Dont try this. You will eventually go bust big time.

 

[trader3cnd]

What's an EA?

 

[everyonerich]

Look up martingale and gamblers ruin in wikipedia.

Dont try this. You will eventually go bust big time.

acknowledged..

 

[everyonerich]

What's an EA?

a software on trading platform that can program your entry and exit criteria stuff. automated trading

 

[timsk]

a software on trading platform that can program your entry and exit criteria stuff. automated trading

Laughably known as an 'expert advisor'. I say laughably because the definition of 'expert' is ex (as in has been) and spirt (as in drip under pressure). Difficult to think of a more pertinent definition for many so called experts in this industry. Who springs to mind and is currently in the media? Oh, I think that accolade belongs to none other than Sir James Crosby. Well done Sir James, you're a true expert!

Tim.

 

[fafajuju]

I've been using this system martingale successfully, but I only use it at opening London (sometimes opening USA) and so far I'm doing it manually. By using proper money management and a stop loss to protect equity it is reasonably safe.
The point is, if we develop an EA, after testing different parameters, it might be possible to use it maybe during all London and USA sessions, who knows...
Martingale strategies are not for everybody, if you don't like it, you shouldn't even bother to read this post....(in the name of the tread you already can see that it is about martingale...)
Some folks at the TSD forum are quite happy using the "blessing" EA, which is also a martingale type strategy...
I just brought this idea to this forum to see if anybody is interested in finding out if there is a future for an EA based in a system that is ALREADY profitable manually, under certain circumstances...

 

[everyonerich]

I've been using this system martingale successfully, but I only use it at opening London (sometimes opening USA) and so far I'm doing it manually. By using proper money management and a stop loss to protect equity it is reasonably safe.
The point is, if we develop an EA, after testing different parameters, it might be possible to use it maybe during all London and USA sessions, who knows...
Martingale strategies are not for everybody, if you don't like it, you shouldn't even bother to read this post....(in the name of the tread you already can see that it is about martingale...)
Some folks at the TSD forum are quite happy using the "blessing" EA, which is also a martingale type strategy...
I just brought this idea to this forum to see if anybody is interested in finding out if there is a future for an EA based in a system that is ALREADY profitable manually, under certain circumstances...

no problem, every system/fundi fails at some point anyway..

reference : http://www.trade2win.com/boards/gen...erstanding-market-fluxuations.html#post659798

 

[fafajuju]

If we use this strategy with a broker that allows hedged margin (like alpari) I believe the risks involved would be minimum since this specific martingale works out with buy positions against sell positions, therefore allowing for hedged positions and lower margin requirements.

 

[everyonerich]

If we use this strategy with a broker that allows hedged margin (like alpari) I believe the risks involved would be minimum since this specific martingale works out with buy positions against sell positions, therefore allowing for hedged positions and lower margin requirements.

i dont think its minimum risk. if market ranging for over period of time, just imagine.. whats could be next..

 

[KillPhil08]

I love this:

I just came across this system.

Next day:

I have been using this system for 8 months!

 

[fafajuju]

That deserves some explanation HEH...HEH...HEH...
In fact I REALLY just came across this system which is not mine (that's why I gave you guys the link to the original post) but very similar to one I've been using (the only difference is that my system includes the spread...)
I only brought this idea to this forum because it was not getting any attention on the other forum...
Again it is already profitable manually for me but I only do one or two trades a day at London opening and sometimes USA opening. So, maybe if automated and with proper money management it can be used at least during the busiest hours 7am to maybe 3pm GMT.
The range I use is only 18 pips so basically, when London opens if price moves 18 pips up or 36 pips down (if I enter buying or vice versa if I enter selling...) I have a profit. If price bounces 18 pips up and down in the opposite direction that I entered the market, FOR 9 OR 10 CONSECUTIVE TIMES (never happened, my max was 7 bounces...) I loose about 10% my equity (not the end of the world...). I don't let it go past a defined number of bounces so the martingale doesn't grow out of control and blows my account.
Take your time to read the link I provided, the other guy did a very good job explaining this strategy, try some entries on eurusd, 18 pips range, London opening , and you will see I'm telling the truth. Whoever likes martingale setups will have some fun...