Quote:
Originally Posted by WNW
Sorry if I appear to be anal here.. this is really only a matter of semantics..
Strictly speaking, Martingale is doubling. Nothing else is a Martingale.
D'Alembert is incrementing/decrementing by 1 unit only.
The "Binary Equation" is a recently made-up term. The progression is a D'Alembert up to a point where it then mutates to something more akin to a Martingale. It's very dangerous.
There is quite a number of other progressions, some of the other well known ones do have names, this falls more under the topic of betting/gambling.
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Yep, agreed. However, I think that binary lotsizing (does this lotsizing strategy have a 'proper' name?) is far kinder on your account than 'proper' martingaling, even if the trade-off is account size grows much more slowly. That said, I have yet to find a convincing situation when you are trading 'properly' (no grids etc.) where any of these sizing strategies are useful - I mean, if you have a good strategy to begin with, why bother increasing risk...