Quote:
Originally Posted by internetgrandmaster
i can assure you this system cannot wipe your account if you follow the recommended risk settings and you cant have more than 15% drawdown
the parabolic sar is default on 15 minute timeframe
the TP is as a result of experimentation ( i discovered that this figure is achieved more often than not, so this dramatically reduces the number of martingale trades)
the divisor came about because if you have a trade ( the first trade in this example) down by 85 pips with 0.01 lot size then opening the second trade at 0.02 will still result in a loss using TP=20.
so the drawdown of the latest trade is divided by 30 (in this case 85/30=2 ( remainders are discarded) so the lot size is taken 2 places down
using this lot sizing method means , you dont open new trades when the trend is against you , but you sum up all your martingale trades into 1 once the trend resumes in your favour as dictated by the parabolic SAR
Note that You will rarely have more than 3 consecutive open trades at any time
the hard part to really understand in this system is how to determine the lot size and i will be willing to answer further questions and make further clarifications
my pictures are coming very soon , please be patient
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Thanks for interesting idea, slight different from conventional martingale by step.
some query:
1)how do you decide start the initial trade (BUY or SELL)?
2)when TP hit, does you open new trades? BUY or SELL?