Thread: Martingale EA
View Single Post
  #25 (permalink)  
Old 01-13-2008, 09:35 PM
WNW's Avatar
WNW WNW is offline
Senior Member
 
Join Date: Feb 2006
Location: Motown, USA
Posts: 372
WNW is on a distinguished road
First, thanks for your work and the EA.

I've been fooling around with this idea for a long time using cobbled-together EA's.

What I've learned is that this can be a very profitable strategy, but if you use any lot multiplier you can quickly get in trouble in a ranging market. No lot multiplier (meaning a lot multiplier of "1") works best, meaning using the same size lot for each trade. Leave all trades open until you have a net profit and then close all open and pending trades.
Another problem with a multiplier is that as you add lots, you're adding leverage. This can work both for and against you in that you may hit your profit target, but by the time you've closed out your positions you may have a loss in a fast market. Being highly leveraged can cause a profit to turn to a loss quickly if volatility is up.

I would also like to suggest the option for "no indicator", meaning a pure grid system based on price action alone.
I may be speaking out of turn as I haven't tried the EA yet, but another suggestion is that the EA leave all existing trades open when the indicators suggest a trend change.

I'm eager to try your EA.
Reply With Quote