I would have to agree with you Mike, being too greedy and aggressive with this strategy will be what makes an account crash.

Anyways this strategy is all about setting up the correct environment in your account. By this mean enough cash in it to ride out up to level 12. Which is 240 pips at a pipstep of 20. The way I have set it up on a spreadsheet is that at level 12 you will have opened up a trade with 20.48 lots if you started at 0.01 lots.

This means that we have to assume that the market can go 240 pips with not a single 20pip retracement at all. This is definitly possible, but not very probable. Especially on currencies like EURUSD and USDJPY. I would not trade anyother currency pair especially GBPUSD or GBPJPY and other extremely volatile pairs.

So how much margin will we need to open up 12 levels, with a total of 40.95 lots and 240 pips? I've worked it out that you will have opened $819.00 against you. Meaning that if you are at the maximum end of your 12th level totalling 240 pips your $dollar amount is -819.00 . This means that you will need AT LEAST $1000 to open up a micro account where 0.01 lots is $0.01 dollars.

anyways hope this rant was useful.


Edit::

If you want to sustain a 300 pip trend with not a single 20 pip retracement (this is highly unlikely, but ofcourse POSSIBLE!) the number of lots open at the highest level are 327.37 total lots, the 15th level lot is 163.84 (again this is unlikley becuase there are very few brokers that even allow lots greater then 50) and the total negative dollar value would be -6553.40. Which means that you will need close to $10000. These calculations were based on micro lots, 0.01 lots = $0.01 Dollars, you would need a massive account to play with this EA even if you were playing 0.01lots = $0.10dollars

and btw, these calculations do not include spread..

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Metatrader 4 - EA Live and Demo Hosting Solutions http://www.omegasupreme.com

Deep drawdown is uglier than the drone of an ominous funeral durge. Margin call has been compared to passing a kidney stone while having your left leg amputated. Ever experienced those sensations? No? Run this EA and I assure you that you will.

Maybe you are a Broker Lemmy !! lol.

Why not tell us how you trade if you can do better be constructive.

haha you do make a good point on the pschyology. I have had a few years of experience so I assure you I have experienced quite a bit of drawdown..

anyways...

Everyone please be warned that this EA is not for the faint of heart. It should be just another tool in your toolbox while you explore other trading strategies as well. It should not be what you base your entire forex life on or all of your money for that matter.

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Wow, this thread sure has gotten alot bigger over the weekend

fxgrm, I'm not very familiar with IBFX since I normally use FXDD. The only reason I used IBFX this time is because I couldn't get the EA to open any orders on FXDD. But if you look at my statement, it seems to me that it is a mini/micro account since the EA is able to open lots smaller than 0.1

ryan, do not use the "5%" EA I posted there. The EA doesn't close all open orders properly.

drgoodvibe, you and I had discussed this previously. gbolla has confirmed that the "5%" EA that both you and I were using was in fact not closing all orders properly. He has updated his EA with the correct fix. I haven't tested it yet, but may be a good idea for you to switch to the corrected version.

Hi!

finally i looked through the code of ea. it's simple martingale only. no one condition to enter a trade i found. if only there is no open position, ea opens a trade. so, we need to backest any of eas in this thread usin M1 data. M5, M30 and bigger periods won't be valid.

Hi Silem,

This is not a "simple martingale only", rather, it is a "hedged martingale" which of course is a huge difference. With a simple martingale only you have no protection with a runaway market. With a hedged martingale you take profit every so often (27 pips in this case) so that you are much farther away from a margin call, and your account balance rises as you await the turnaround in the market.

This difference is important. I have traded several "simple martingale only" strategies, such as 10points3 EA, and they make me very nervous as there is no hedging, no protection available.

A 200 pip move with no retracement in those "simple martingale only" strategies can ruin an account. With this EA, we have taken profit 7.5 times during that same 200 pip move. Obviously this lets us sustain much more of a move as we await the market to turn in our favor for a few pips.

I hope this clarification is clear. It makes all the difference for me.

I'd have to agree Mike, that's what sets this EA apart from the rest.

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thanks hhsmoney, I have gotten this version and will forward test starting this evening. Oddly though it doesn't backtest as well as the incorrect 5% version. I will run both concurrently and see what happens.

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Ok, the more I read the more I find myself getting confused with all the different versions floating around. So I wrote this up to help me clarify, hope it'll help a newbie, and please let me know if I have stated something wrong.

This is what I have gathered:
1) v1 and v2 are the same, one goes long and one goes short. You'll have to attach them to different charts of the same pair in order to hedge.
2) v1+v2 combines v1 and v2 together, but now you only have to attach to one chart.
3) v1+v2mini is the mini account version of v1+v2
4) v1+v2mini5% is the closing all open positions at every 5% gain of v1+v2mini

If this is correct, I'll gather up all the different versions and mikejody can append to the first post.