Greetings,

I want to tell you about a system that has produced 490 pips in the past month, with no draw-down. The reason I am showing this to you is because I would like any input as to if/why this system would not work, or to solicit your input as to how to make it better.

Here are the rules:

Any currency
Enter long .01 at 2200 GMT (this first trade on a demo account)
Enter short .01 at 2200 GMT (this first trade on a demo account)

Next day at 2200 GMT:
Enter long .02 at 2200 GMT (assuming yesterday's long won)
Enter short .01 at 2200 GMT (assuming yesterday's short lost)

Both take profit and stop loss is 30 pips.

Double on winning trade only until net positive. Once net positive, the very next trade at 2200 GMT will be on demo account at .01 lots for both long and short. Since we know this trade will be neutral (one loss, one win) there is no reason to trade it on a live account. Only trade it on a demo trade to discover which side to double on the next day on the live account.

The impetus for this system came from Jimbo's thread, which uses a Martingale approach to this, and can be found here: here

The problem I found with this original system, as with any Martingale system, is the large drawdown. This drawdown was somewhat mitigated by the fact that there was always a win associated with every trade, but the increasing lots on the losing side produced large drawdowns.

Therefore I decided (based upon input from others in that thread) to test this system using an anti-martingale strategy instead (adding to winners instead of to losers). I am attaching the results which show a 490 pip increase with no drawdown.

I can also email you Jimbo's original results which are in a Microsoft Excel sheet if you PM me your email address. We cannot post Excel files in this forum or I would just post them here. (Please give me a day or so to get back with you if asking for the file.)

I do not know how to work with Excel to make my results appear in a spreadsheet. If anyone does, I would appreciate a copy of the spreadsheet with instructions on how to record these trades into the spreadsheet, so that we might do further testing.

So, please examine the attached (my results), ask for Jimbo's original file, and then provide any comments that you might have.

P.S. I do not know which currency Jimbo used initially for these results, so please do not ask.

Attached Files

Anti Martingale.doc (22.0 KB, 723 views)

Dear friend,

You obviously dont understand Dealer Lot Management at all. Here is the correct calculation if you double up the winners. Attached zipped Excel format for you. You must have left out the doubled up winning position in the calculation when market TURN AROUND! Sorry to show you the truth. Any martingale things you can ask me.

Regards

David

Attached Files

blow up gale.zip (12.2 KB, 415 views)

__________________
"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis." - Jesse Lauriston Livermore
I'm blogging my EA creation journal

Greetings David,

Thank you for your comments here. I am wondering one thing, though. Did you understand this portion of the rules?

"Double on winning trade only until net positive. Once net positive, the very next trade at 2200 GMT will be on demo account at .01 lots for both long and short. Since we know this trade will be neutral (one loss, one win) there is no reason to trade it on a live account. Only trade it on a demo trade to discover which side to double on the next day on the live account."

It seems like you did not include that in your picture file you sent back, as it looked like you continued doubling.

Thank you.

OK. Before the end of the day of 1.60 lots, how do you know market WILL NOT shoot up 96pips? Bear in mind, I'm not trying to have a fight here. I just trying to give you a point. I could be wrong. Because towards the end of the day for the 0.80 lot, we're still in great profit, how do you determine we can do BUY that day for 1.60 lot? Now, I added the 0.10 lot for the demo account that we're not using. See what happen if it trade it to the live account at the same time. Reminder, just a discussion here, no hard feelings.

Regards

David

p/s: if you still think that I'm wrong, can you please run a few days demo and show me how you live with it? Especially the best with a straight few days on a trend, and a quick retracement within a week.

Attached Files

revised.zip (12.3 KB, 236 views)

__________________
"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis." - Jesse Lauriston Livermore
I'm blogging my EA creation journal

Hi David,

Yes, no hard feelings whatsoever, this is what I am looking for is to discover if I am missing something.

But in the results posted in the Word file it shows that there were a maximum of two days worth of trades that increased lot size. So the most we got to was .04 lot size.

I'm attaching the Word file again, this time with designation as to which trades were on demo. Remember, after getting into positive, we go .01 both on the long and the short for the next trade, and we do this on the demo.

This would be so much easier to explain if someone could put these trades into an excel sheet, like Jimbo did with his Martingale system.

See attached...

Attached Files

Anti Martingale.doc (22.0 KB, 273 views)

Ermm... so you fix the TP and SL ? 30, 60? Or that is just an example. But I prefer you run it with live trading data better. Because in the end you'll see something like my chart. 4 days down, we actually making great profits, it just take 1 day, that we got in 1.60 lot, and market reversed for 96pips. All gone! Have you put this in to practice so far? Or just a raw idea, you wanted people to test it?

Regards

David

__________________
"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis." - Jesse Lauriston Livermore
I'm blogging my EA creation journal

Dreamliner,

Can you post examples of when you keep adding to winners and you have consecutive losses? When do you pull the plug?

Thanks, lcfxtrader

HI lfcxtrader, yes the examples were in the attached Word file, which would have been so much clearer if they could be in a spreadsheet.

The attached Word file were actual trades that Jimbo did, and how they would have turned out using the anti-Martingale strategy. Again, never did we get above .04 lots.

This is the best use of a demo account. Good Job...your using the Demo as a true tool...


Double on winning trade only until net positive. Once net positive, the very next trade at 2200 GMT will be on demo account at .01 lots for both long and short. Since we know this trade will be neutral (one loss, one win) there is no reason to trade it on a live account. Only trade it on a demo trade to discover which side to double on the next day on the live account.

Shouldn't the fixed SL's and TP's be ATR adjusted? I am sure you can agree the movement...hmmm say in the EUR/GBP...verses the GBP/JPY is quite different?

ES