Martingale principle is popular in FX trading; its works very well if you have a high provability system. High probability means more the 70% winning ratios in trading. my trading strategies are able to produce 70% winning rates in any given time frame ,I was following Martingale principle. Any fundamental news related trading will consider only 50% winning ratios. Yesterday I lost three consecutive trades, though USD/JPY was up 200 dollars, I was not active enough to put it in a break even trade. After three losing trades I was sure that my system will produce a winning trade and I just follow the principle. Here is one problem if you don’t know what’s your system probability is, you shouldn’t be using this principle.
7 comments:
I use an "ANTI-MARTINGALE SYSTEM".. it means opening an hedged grid of "buys" above the price and "sells" below the price. I don't know if you heard about Pipforia EA.. it's quite similar!
Hi Robin hood,do you have any link to this system.
Hi PRD!
They recently changed name and you can find them here
http://hi-netcapital.com/
however, although this is a commercial package, I think that the idea behind is quite good!
I developed similar systems and they are not doing too bad.
Thanks!
David
Ty David.Ok according to this system you keep adding up to your position if it is winning position.I do that too,but i only add one position.If there is a sharp fall in the market that will kill you.How is your p/l using this system.
indeed :D this is the bad side of this system.
I only add one position too and I try to close it if I think that a reversal is around the corner, maybe moving the stop order some pips further.
I usually risk 5% of my Balance.
Are you trading for a living?
Yes,but i have other bussiness running at the same time.
5% is not that bad,i usually do 2%.
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