Simba,

I didn't imply that you used martingaling, just your averaging down is the same behavior as trying to recoup the loss by putting on another trade until you dig yourself out of the hole. Sorry if it came out that way.

And systems fail all the time. I just shut down my automated strategy after a year of live trading. It was just churning and had negative expectations, and making my broker rich. I took a loss, and closed all the trades. Even though it had high hit rate, I couldn't overcome the large loss trades. I now have to rely on other strategies.

Here's what my statement looked like:

Gross Profit: 14 381.35 Gross Loss: 16 399.05 Total Net Profit: -2 017.70
Profit Factor: 0.88 Expected Payoff: -0.45
Absolute Drawdown: 0.00 Maximal Drawdown: 13 487.39 (64.17%) Relative Drawdown: 64.17% (13 487.39)

Total Trades: 4455 Short Positions (won %): 2560 (89.53%) Long Positions (won %): 1895 (96.68%)
Profit Trades (% of total): 4124 (92.57%) Loss trades (% of total): 331 (7.43%)
Largest profit trade: 67.44 loss trade: -757.85
Average profit trade: 3.49 loss trade: -49.54
Maximum consecutive wins ($): 471 (1 736.88) consecutive losses ($): 114 (-13 487.39)
Maximal consecutive profit (count): 2 662.19 (355) consecutive loss (count): -13 487.39 (114)
Average consecutive wins: 43 consecutive losses: 3

Ce la vie.