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I haven't looked at how this EA differs from other martingalers, apart from noting that it does not actually martingale (incremental increases, rather than doubling-up) - but you MUST increase the pips range in order to profit when you close a series of any length, otherwise the series may close successfully, but it will be at a loss! This is in effect, increasing your TP. Reducing your risk by incremental increases requires you to 'compensate' by increasing the range price must move before you may close profitably, everything comes at a price...
Or am I completely off-base here?...
First, there is a Martingale option, it will double-up.
I've been using this type of grid for quite awhile, and my experience does not bear out your comments.
Eventually price simply moves far enough that one side has more winning lots than the other, thereby creating a profit.
As I said previously, when you do use lot incrementing you can risk a loss in a fast market due to the increased leverage at work.
There is no need for a "dynamic" grid.
I agree with ES in that lot sizing using MM would be more appropriate given that profits are based on equity %.
The alternative would be a fixed profit amount.
Martingale does not require doubling up to be considered martingale...a progression or a series of progression (rising and falling) is all that is needed..
Mathematical increases can be achieved several ways...0.01 lot increments does not mean that the martinglae in removed...it is just a gentle progression....
The grid this EA demonstrates allows for pyramiding...where the Blackbird does not...This EA will allow trades in the same direction according to how strong the trend develops and how the next trade is inputted.
Again, I am not a big fan of martingale as I believe there will come a day it blows up...But this EA would require the instrument to really chop around for a very long time until it ran out of margin (assuming the 0.01 increment input and proper next trade gap)...I cannot find an instance where this has happened historically yet....the problem is the lenghth of the wait and the yield on the account....
ES
Quote:
Originally Posted by WNW
First, there is a Martingale option, it will double-up.
I've been using this type of grid for quite awhile, and my experience does not bear out your comments.
Eventually price simply moves far enough that one side has more winning lots than the other, thereby creating a profit.
As I said previously, when you do use lot incrementing you can risk a loss in a fast market due to the increased leverage at work.
There is no need for a "dynamic" grid.
Last edited by ElectricSavant; 01-14-2008 at 06:46 PM.
I have to disagree on one point.. "Martingale" is often misused to represent almost any lot incrementing scheme. The term "Martingale" specifically means a doubling progression.
All this tells me is that I should actually see what the EA is doing b4 posting - I clearly have no idea what the EA is about!
As for martingaling, well I'm covered both ways on this as I have written and posted on varous EA's I have written that do this, and classed it as martingaling. HOWEVER, I always believed that the actual term, strictly applied, means 'doubling-up' - are you sure you are correct about this?
Quote:
Originally Posted by ElectricSavant
Martingale does not require doubling up to be considered martingale...a progression or a series of progression 9rising and falling) is all that is needed...
Mathematical increases can be achieved several ways...0.01 lot increments does not mean that the martinglae in removed...it is just a gentle progression....
The grid this EA intoduces allow for pyramiding...where the Blackbird does not...This EA will allow trades in the same direction according to how stong the trend develops and how the next trade is inputted.
I have to disagree on one point.. "Martingale" is often misused to represent almost any lot incrementing scheme. The term "Martingale" specifically means a doubling progression.
Martingale and its origins of the word may prove me wrong...but in trading circles the consensus is that progression is what make a martingale..
There are some clever developers that evaluate strings of loss...vs. strings of wins that have devised a variable martingale series that is not in order...but with unequal sequential increments...
These martingales can be tailor made for the method..
...Now why do they call a Chart a Graph?...and a Target a Take Profit?....Leverage is called Gearing?...etc...(This is a UK thing) All of this is for another thread.
ES
Last edited by ElectricSavant; 01-14-2008 at 07:03 PM.
Martingale and its origins of the word may prove me wrong...but in trading circles the consensus is that progression is what make a martingale..
There are some clever developers that evaluate strings of loss...vs. strings of wins that have devised a variable martingale series that is not in order...with equal increments...
These martingales can be tailormade for the method..
now why do they call a Chart a Graph...and a Target a Take Profit...That is for another thread...and Leverage is called Gearing...etc...(This is a UK thing)
ES
Not meaning to nit-pick, but by that definition, both binary and D'Alembert could be classed as martingaling, but I have never seen this applied to them - they are lot-sizing strategies in their own right imo...
But the use of staggering the entries (gridlike) and single lot increments or decimals therof applied sequentially or non sequentially...
What would we call this?
ES
P.S. Note: This particular mathematical pyramiding in this EA does not utilize differing grid spacings...which also can be played as a progression.
Quote:
Originally Posted by omelette
Not meaning to nit-pick, but by that definition, both binary and D'Alembert could be classed as martingaling, but I have never seen this applied to them - they are lot-sizing strategies in their own right imo...
Last edited by ElectricSavant; 01-14-2008 at 07:23 PM.
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