I've been reading here the last few days and have read several of the long threads on some of the better known EA's that use Martingale type of MM. Such as 10pts3 and all it's descendants, Firebird, etc. It seems like most of these threads seem to have died off when people gave up on them due to huge drawdowns and/or account busting.

Here's my take on this . Correct me if I'm wrong.

So what if it busts an account? Firebird for example has been criticized as having 3-4 times a year that it will wipe out an account. The only danger here is if you just leave it going and compounding in the account. My strategy would be to take profits (or at least a healthy portion thereof) out regularly, perhaps even weekly. So when you reach one of those times where it busts the account, so what? You've already taken out profits to equal your initial capital plus a huge return.

Thoughts?

What's your strategy, let's discuss and improve it.

Nic

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Nic
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If you red through 10point3, you must know who I am. AND YES! Thats the idea. Take profit whilst in profit. This is the understanding of all the people who dealt with martingale type EA. What is the problem so far is, when there is profit, it will make you blind. The account balance figure will drive you crazy, insanely! When you see your account doubled, thats because you've compounded it for a certain period, say 20 trading days(1 month), what are you going to do next month? I can guarantee not much people will take out the profit, as everyday they keep telling themself, " No problem, its just another market fast moving day, the MaxTrade can take the move...". Now, you really dont know whether the account will blow up the next day. This is the important catch. Ofcourse, there is another group of unlucky people, the 1st day they plugged the system on the account, immediatelt it went max trade and take them out of business. I've seen people blow up their account until their wife figured out the next month they cant afford to buy the formula milk powder for their kids anymore. So, if there is a formula to calculate when to take profit, or if there is any formula to calculate when it will blow up the account, then MARTINGALE risk is no longer exist. When its a formula, it can always be predetermine by algorithm. We can directly program it in the EA.

Regards

David

AND YES. I should have withdraw. But I made the same mistake as everybody did. Luckily is not my main account.



Regards

David

Seems to me pulling out profits should be the manual part of your system. And you must be disciplined with it instead of letting emotions rule you.

In terms of being unlucky enough to enter on the wrong day, it seems to me that you'd have to be VERY unlucky. If you turn it on in a ranging market (like we've had the last week or so) and make sure you don't start it on a day with a major news release, it seems highly unlikely you'd blowthe account before building some nice profits. And with my idea, if I had say 10K to invest, I'd open the first account with $2500 or so. So that if I was unlucky enough to blow it before making at least the $2500 back, I'd have some left to start over with.

David, since you've been around here much longer than I and heavily involved with these EA's, which 10pts3 derivative would you suggest if I want to try this strategy? Right now I'm running Terminator 2.03 on a demo account. Also running a couple different versions of Firebird.

I see a lot of potential on RMI edition. Good luck with it. Perhaps, you should start demo it for few months, then you know how good the system is, as well as knowing how often you should withdraw

Regards

David

Yes I will definitely demo for a good period of time. Not familiar with RMI. Which thread would I look in for that?

In the 10point3 thread.

Regards

David

Just for everyone on this forum that does not know anything about Mathematics:

Martingaling does NOT make a losing strategy profitable, and taking out profits doesn't do that either!

If you don't believe me, calculate it through! Or just google it - there are thousands of pages describing this.

Nobody said anything about a losing strategy. I'm talking about winning strategies that occasionally have a big loss. Firebird EA for example. I made 500 pips on a demo on that one last week. Others' longer term results bear that out. The achilles heel of this EA is that about 3x a year (according to another thread) it will go nuts and blow out an account.

By taking profits out consistently, when this happens, so what?