ive been trying to put a spread sheet together so i try variations of the martingale system, however im struggling with the maths of it . i want the basic martingale system showing break even points, with the ability to input current prices and my investment for each price. eg, if i invest £100 at a price of £2 and another £100 at a price £1.5 where is my break even? what if i invested £200 at a price of £1.5 instead of £100, what if my next investment was £50 at £1.3?

i thought it was the average of the price, but if i invest £100 at a price of £100 i will get 1 unit, then if i invest £100 at a price of £50 i will get 2 units, so even though ive doubled down will the breakeven still be the price average (at £75) because i now have more units at a lower price thus breakeven should be reached earlier (round about £66 imo). thanks in adavnce.

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??? dont understand

ok maybe forex numbers may make it easier to udnerstand. basic martingale is double down on every loss,

price......buy
1.9000 - 1lot
1.8500 - 1lot
breakeven = 1.8750
but what happens if i buy 2lots at 1.8500, where will my breakeven be then?

price......buy
1.9000 - 1lot
1.8500 - 1lot
1.8000 - 1lot
breakeven = 1.8500
but what happens if i buy 5lots at 1.8500 and then 3lots at 1.8000, where will my breakeven be then?

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There is no candle.

Hello trevman

Try this:

your 1.example ((100 * 2) + (100 * 1.5)) / (100 + 100) = 1.75
the 2. ((200 * 1.5) + (50 * 1.3)) / (200 + 50) = 1.46
and the 3. ((100 * 100) + (100 * 50)) / (100 + 100) = 75

for the 3. it is not 66 because otherwise 100-(100-66) had to be 50.

and by having more stakes : ((price*inv)+(price*inv)+(price*inv)) / (inv+inv+inv)
and so on.

Yes, its always a little bit tricky with the math.Your 66 had brought me initially to calc the so called Harmonic Mean http://mathworld.wolfram.com/HarmonicMean.html but had led me on a wrong track. For hours...damned.
Btw maybe later on you want to check out also the Supermartingale with your
spreadsheet calcs.I would be curious to see the outcomes.


hbud

hbud, ive been testing the suggested formula and ive noticed abit of an oddity. the distance between the price of trades and the price of breakeven seems to go up before it goes down like so

diff = breakeven - price at last trade

surely it should go down from the start, rather than up. the forumlas are all correct.

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There is no candle.