This is a system derived from two other threads. The system in itself is quite simple. You enter a market order at price P (let´s say it is a buy), size = 1 unit, with a TP = I & SL= 2I, and place at the same time a stop order (a sell stop in this case) at P-I, size = 3 units with its TP = P-2I and SL = P+I. It should look this way:

TP/SL --------------------------- P+I
First market order -------------- P
Sell-stop ------------------------ P-I
SL/TP --------------------------- P-2I

If the sell-stop is triggered, place a buy stop at P, size=6 units, same SL/TP than the previous buy order.
If this buy-stop is triggered, place a new sell-stop at P-I, size=12 units, same SL/TP than the previous sell order,
and so on...


The final profit will be defined by the initial size (1 unit)and the grid increment (I).

Basically, what we are doing here is defining a range width of 3 times the increment (I). Price will zig-zag within this range until it hits either of its boundaries, where all orders are closed (either at their TP or SL). At this time, any pending orders are deleted.

If we define the unit as 0.01 lots, the size progression will look like this:

Buys 0.01 0.06 0.24 0.96 3.84
Sells 0.03 0.12 0.48 1.92 7.68 etc...

This of course can be tweaked to increase the level of risk, at the trader´s choice.

The problem with the margin to let the progression go on is somewhat relieved because the positions hedge each other, so a broker with convenient hedging margin requirements will be most useful here (Alpari is one of them, btw).

An EA will be easy to code, so if any programmer likes the idea, he/she is welcome to try and code this one.
The ideal inputs would be:

First order long (true/false)
I (increment)
Sizes of each progression level
Time of entry
Time to stop trading


From preliminary observations with a similar EA, larger increments tend to work better since they keep you in the game long enough for a significant breakout to happen.

Enjoy,

Middleastern

I believe this is a very good idea, with proper MM and entering the market at strategic breakouts (trends or channels..) it would be a very interesting game to play...

Have you had any answers so far?

If we use this strategy with a broker that allows hedged margin (like alpari) I believe the risks involved would be minimum since this specific martingale works out with buy positions against sell positions, therefore allowing for hedged positions and lower margin requirements.

I only do one or two trades a day at London opening and sometimes USA opening. So, maybe if automated and with proper money management it can be useful at least during the busiest hours 7am to maybe 3pm GMT.
The range I use is only 18 pips so basically, when London opens if price moves 18 pips up or 36 pips down (if I enter buying or vice versa if I enter selling...) I have a profit. If price bounces 18 pips up and down in the opposite direction that I entered the market, FOR 9 OR 10 CONSECUTIVE TIMES (never happened, my max was 7 bounces...) I loose about 10% my equity (not the end of the world...)
Take your time try some entries on eurusd, 18 pips range, London opening , and you will see I'm telling the truth. Whoever likes martingale setups will have some fun...

Since nobody seems to be interested in this tread, I wonder if there are other similar treads going around the same strategy like middleeastern said at the beginning of this tread....