after reading and reading and reading i was extremely bored from threads that starts with ideas and end with failure where i dont know why people specially in forex aim to build a trading system and its not a Holy Grail but its more like a sweeping machine.

so i will share some of the nice ideas i read through this forum and other forums how to Escape from a loosing trade .

PLEASE IF ANY MEMBER WHO IS NOT INTERESTED IN MARTINGALE , v1+v2 OR WHATEVER THE NAME OF THE EA IS PLEASE QUIT READING AND CLOSE THIS THREAD & DONT POST ANY NEGATIVE COMMENTS .

People loose money and dreams while others watch and laugh so i do hope we can call reach building a nice thread full of smart ideas and techniques .

That was my introduction to this Thread i will also save some space for the Ideas posted by other Members and Me .

Gents Keep it professional please .

Thankx in advance .

Hello

Im not programist, but i would like to share some of observations after testing some EAs.

1. I think we shouldnt be strict in maximizing profits in particular settings of EAs. Market conditions changes quite fast, so u r not able to find the best setting for the market every day. I see that we should be in the market on MIDDLE setting and dont care so much about max profits. I have observed that fighting always for max profits doesnt allow to catch middle profits instead of max profits. So only catching middle profits can allow to bo more away for losing money.

2. I see that very good strategy is GRID, but GRID need much money, so we should set distance between lots in martingale a little bit closer to GRID strategy. I set distance between lots to 30-40 pips and set max trades usually at 2, and TP at 20-30. There is much less transactions, but losing money is much more smaller. Sudden loosing money is not also so often.

3. I think that should be good to analyse the AVERAGE LENGHT OF TRENDS FOR EVERY TIMEFRAME like finding proper STOPLOSS with ATR. For every timeframe maxtrades and distance between lots should be different.
If u follow the trend you lose money in the moment of trend changing. So only stopping trading at the end of trend can remove losing much money.

4. Big cycles are consisted with many different cycles for smaller timeframes.
So that why many EAs look so good at 4H timeframe.

5. Human is impatient. EA is very patient. So that why we want to force EA to work at 30min timeframe or 15min or 5min. I think is impossible to force EA to behave in small timeframes like human being. My observations directs me to the think that 1h and 4h timeframe is much more resistant for loosing money. This opinion is also taken from the BIG INTERNATIONAL FUNDS, which always say that they always need at least 1 year to give the profit. The best hedge funds dont give 300000% profit etc. they give 20%-100% as a maximum. They use method worked out by group of people using many strange algorithms.
So we cant belive that Holy Graal is easy construction.

6. Creazy idea: if EAs have different result in different timeframes and periods, so could it be profitable to manage one account with 4-5 EAs one the same currency? Every EA has its own CYCLE OF EARNING AND LOOSING MONEY.

7. Thats only my thinks, nothing more.

master001

It seems that Steinitz has a good strategy against loosing positions : just do nothing and wait...

In simple terms this means:

1.Open a trade in the opposite trade direction of the martingale series, which covers at least the drawdown of the last 3-4 Martingale trades, if closed in profit
2.Do not use a random signal for trade entry, because this could leave you in the loss once the martingale reverts
3.Base your hedge on reliable indicators and trade setups

Example.................

Combine any Martingale EA with some of the better single trade EA`s.Unfortunatly to my knowledge these can be found either in the Elite section of this forum or are not allowed to be shared on public threads by the author.

So, i suggest to move this thread to the Elite section and/or combine the martingale EA`s with a single direction EA( EUR/USD with Firebird as an example).Please note that account equity has to be substantial to move through a full 10 open trade series, even with 0.01 start lotsize.
Further it will depend to a large degree on the brokers used, since some very good Ea`s work with Alpari, but NOT with IBFX;FXDD and similar ones at all.

For your review see attached statement of the "loosing" EUR/USD hedged with a series of manual trades in other pairs.
Furthermore the last trades(EUR/USD) got closed all after the total drawdown was 0.

Janus

Attached Files

DetailedStatement.htm (26.8 KB, 168 views)

Just some off-hand observations:

It is clear that martingale EAs will lose money in trending markets, and trending EAs get torn up in ranging markets. The obvious conclusion would be to combine the two, however this takes some human intervention and is not a click-and-go affair.

It would seem that the best solution would be to choose either ranging markets or trending markets and focus on the best way to keep the account from detonating when it experiences unfavorable market conditions. I would persoanlly go for a ranging market as price seems to spend most of its time doing this, however everyone has different preferences.

I would probably run something like the fifthelement EA or V1+V2 (I think, don't have much experience with that one) and have it run within a defined channel on a pair which has high correlation (i.e. EURUSD). When price breaks the predefined channel the EA could launch a hedge trade which would prevent the account from drawing down any further.

Then on the other correlated pair (GBPUSD) run a grid system similar to makegrid 1.93 or whatever with buys above and sells below operating outside the limits of the price channel of the first EA. So, when the hedge trade is launched on EUR the GBP grid starts up (indicating a trend), with tight spacing, martingale lot progression and trailing stops to recover some of the floating loss.

Anyway its kind of complicated and requires a lot of margin, but it seems like it would work. Trying to put that together in an EA would be a bit difficult, and might require a master/slave EA setup. Plus you would have to define the price channel, which would require at least some effort and make backtesting difficult. Sometimes I wonder if I am missing the forest for the trees though...

__________________
魑魅魍魎

To have some security working with an EA like Bless_5th, one must follow 3 simple rules :

1) to have a max number of levels (for sample 6).
Starting at 0.1 lot on level 0, maxlevel 6 means that the highest lot is 3.2 and that up to 6.3 lots can be opened at the same time.

2) to have a StopLoss.
When the 6.3 lots are opened, one can compute the average entry price. (It's like to have one position of 6.3 lots at that price.)
Assuming we choose 50 as StopLoss, (because this value is working well in BT) then the loss cannot be higher than 6.3 x 50 x 10 = 3150$ on EURUSD.

3) to have enough equities.
As simple MM rules, one can choose to never reach a risk higher than 3% of the equity per position (which is already agressive).
This means that our 3150$ loss must be lower than 3% equity, ie that our account must have more or less 100 k$ minimum.

On a mini account, starting at 0.01 lot, we must have a 10 k$ account to run such kind of EA safely.

Now, in place of StopLoss on each position, it may be better to place a pending stop of 6.3 lots. In fact, the loss is virtually already done but this allows and gives some time to manage it manually by some more intelligent (?) way, so one can exerce his manual trading skill (checking the S/R or fibo retracements for sample) ...

hi static

I like your idea..how you would define the price channel for the ranging period automaticly? with a high low indicator or how you think?

regards
lodol

I posted several times in this forum about leverage and the possible returns.
Michel made a very good point:

10k in a mini account for 0.01 lotsize= 100 currency units to start with

This is per pair! traded.

Forward tests on Demo and live accounts on EUR/USD and EUR/GBP(statements to be found in several Martingale EA threads) will show, that returns will go down to the 50-300$ level per month.
Even with this kind of leverage an account blow up can never be excluded, but is very unlikely.
On the other side, drawdowns of up to 20% of account equity could be seen.

Now think about risk vs reward ratio............

Only the already persued idea of "Master and slave" EA´s, meaning to run a set of EA´s for various markettypes will enable a trader to increase profits to a 5-10% level .
While this is still outstanding overall, there is hughe risk associated with this type of trading.

So the target must be to make about 100-500 USD per month on a 10k account without hughe drawdowns using martingale strategy.

Now think about that..................

Janus

I agree with you, Michael
But I think most of the people here trade with 3K-10K, so I am forcing imagination to trade this Ea with that kind of starting capital, trying to figure a less risky way, coz otherways the only option aviable will be to trade with nanolots. You may say (and will be right) that if you don't have that kind of starting capital, do not trade this kind of EA.
But lets hear and develop ideas and lets see if some of them can work.

finally i am finding similar minds & gents to speak with .

so here the way i think , Imagine the forex as a cave man and we are ants like .

we can feed on chunks and reminants of his food or while he is feeding actually he is feeding on some on us while i am writing this .

so what are the variables in any martingale .

Grid Size

Take Profit

Progression aka Levels

starting lots

Stop loss

Multiplier for each level

those are the major ones to start with

so lets see which we can play with and which we cant

sure we wont let the rofit away but the profit and grid size are correlated .

things turns messy here , well as a matter of fact each pair in whole forex world is martingale friendly but what the F*** happens is that when an author posts an EA dozens of people test it as it is whithout trying to manipulate the setting just for adventure , not to disrespect EA programmers as i am trying to promote myself in MQL but am sure there are millions smarter than me and i am smarter than millions then why dont people feel to explore this is the Question anyway i am not here to question people atitude .

so returning back to the main track

Taking in consideration the EURUSD everyone trading martin was busted last week due to the sudden 200 pip move without retracment , why BECAUSE ALMOST ALL PEPLE TOOK 20 TO 25 GRID shittttttttttttttttt.

so lets see the smaller picture , i am traped in the Trade help me ninja .

so here is the Ninja Key 1 test after the ninja ofcourse because he isnt the smartest but he isnt dumm .

EURUSD Grid 9 Tp 12 ohhhhhhhhhhh ..
how many times that sucker retraced 12 pips in its 200 journey to F*** all accounts , you do the math .

that was Key 1 .

what about Key 2 the initial lot , i see no profit in the first levels , shit speak english bastard .

i mean its for your own favor to go far so you can get cookie in your wide mouth , lets say


Starting an account with 10K this is totally HUGE but i will use this from now on , then set 12 levels as an example .

Notice this ---------------------- someone after this post will gather some destructive critisicm and say hey fool 12 levels and starting 0.01 in a mini account then you are risking too much ..

here is my future answer to that ignorant , how come EURUSD goes from 0 to + 90 pips without retracing 10 pips .

i think this would happen in 2 ways either USA get Nucked or UK which is farely impossible .

but shit happens , who said that forex is safe but who also said having your money in a wall safe is more safer ..

think like this gents and things will be easier ..

before i leave you with key1 and key2

there is a metter of spread paid , having a Grid 20 is better than having a grid 9 yes sure you will not pay much spread but remember the cave man
when he satch you with a heavy meal he will kill you this is the same as having a TP 27 or more without a Trail .


The ninja wish you a sliced pips if you cant then he will serve you sliced , Good evening Lads and Gents & i wish you a Happy evening with the Ninja Show ...

Btw i am not mad , am trying to think while smiling a bit , lets not grief and think while smiling as i do .....

REGARDS FROM THE NINJA