Hey guys, thanks for the input on the thread. I have no problems discussing martingale here. I know it will eventually blow your account if you are not smart about it. It has happened to me a few times. I guess the trick is to get to a stage where you could cover or withdraw your original account balance and then trade with profits only. Not a sound strategy as you just don't know when that losing sequence will begin. It may happen from the get go or it may take a year or two. Then there is always the option of either having hedge type trades in place that can be big enough to cover losses. For example I use another one of my EAs that does work of a martingale strategy when it reverses but I normally run a 2nd chart with the same pair using another EA that will cover my losses when the first EA goes into martingale mode. So there are ways around it. Just have to put a bit of thought into it. Once you start using hedges, you will have losses, but you shouldn't blow your account.
There was also a comment of whether it would be viable with regards to position size, whether it would be worth the effort. Good question and this is where you would use high leverage to your advantage, which would give you a much better chance of seeing out a losing sequence. Also the use of multiple pairs may assist where you churn out a profit on a day to day basis. The martingale EA I talked about above only turns a profit of $8-$10 on each sequence on the EUR using a 0.01 lot position size. Not much, but they can add up pretty quick on the big market moves.
So hanover, behrozfx and charvo, thanks for the comments guys. That's why it is a forum as we are here to discuss the points put forward, whether good or bad. Cheers. Jim
Now to the trade update.
EUR still short 1x at 1.3338
GBP now long 1x at 1.6068, so there was a profit of +46 on the previous short.
CHF still long 1x at 0.9164
AUD is still short 2x at 1.0530
E/JPY still short 1x at 119.11
EUR/AUD still short 1x at 1.2637
Closed results to date : +719
There was also a comment of whether it would be viable with regards to position size, whether it would be worth the effort. Good question and this is where you would use high leverage to your advantage, which would give you a much better chance of seeing out a losing sequence. Also the use of multiple pairs may assist where you churn out a profit on a day to day basis. The martingale EA I talked about above only turns a profit of $8-$10 on each sequence on the EUR using a 0.01 lot position size. Not much, but they can add up pretty quick on the big market moves.
So hanover, behrozfx and charvo, thanks for the comments guys. That's why it is a forum as we are here to discuss the points put forward, whether good or bad. Cheers. Jim
Now to the trade update.
EUR still short 1x at 1.3338
GBP now long 1x at 1.6068, so there was a profit of +46 on the previous short.
CHF still long 1x at 0.9164
AUD is still short 2x at 1.0530
E/JPY still short 1x at 119.11
EUR/AUD still short 1x at 1.2637
Closed results to date : +719
JAGfx