I tend to agree. I think D'Alembert or Binary position sizing would be more appropriate for this strategy which I am going to try.

Needless to say, my lack of obvious concern would indicate that I am running this on a demo. I look forward to seeing your real account info.

I wanted to share my experience about this strategy because I think that applied correctly this strategy is a winning one.
I have used it on a live account for one month now with success and even if this month has been particularly good and that not every month will be like this one I think that this strategy is profitable.
I also need to say that I used in fact a variation of the original strategy, I will explain why and what were the main ideas for the change.

But first how it happened.
When I read about this strategy I felt that there was a sound idea behind it and and started to test it with a basket with 10 pairs (the one described in post #43) on a demo account with $100 000.
As it was a time for carry trade unwiding the strategy with martingale failed quickly (it was a good time to test). Then I sensed that only the safe mode was to be used and even what I would call the "double safe mode" with both a lot progression remaining constant (a grid) and a space between orders bigger than 1% (like 3%)
An other point that needed to be solved for me was that the minimum account size to trade the original strategy with 0.01 lots was $5000 but I wanted to test it first on a real $1400 account that I use to test new strategies.
Then as I couldn't reduce the lot size I reduced the number of pairs. For instance several pairs were correlated and we were short many times on CHF and JPY. Then I reduced the exposure on these currencies but of course the swap gain went down as well.
I will not give here the exact pairs and settings because I think it is a personal matter for everybody to find the best pairs (also depending on the account size) for him and the one I choosed are probably not optimal so you can do maybe better than that.
I started to test the new basket for few days when the unwinding went even stronger (Thursday August 16). Originally I wanted to remain on a test account for all August but when I saw this move I thought "I have to get in" because it looked like an exhaustion move for me.
Then I entered on Friday, the move continued a bit but then turned back and profits started!

The result after 1 month is:
Balance = +10.6%
Equity = +14.6% (+4% compare to Balance)
The maximum Drawdown was probably around 5% (I didn't keep this data recorded)

Probably the results in the coming months will be lower and I expect an yearly return only around 50% even considering the results of this month (it is better to have realistic expectations)
I will try to give info on the progress every month (there is no much point to do it more often with this strategy)

As a conclusion I would like to thank Vtam for sharing this strategy that can be adapted and tuned for different account sizes.

I think that this strategy has several ingredients that are good for a succesful strategy
- it is boring (in fact it is very boring, even if I am used to "boring" strategies this one is a good one) and everybody knows that succesful traders say that succesful trading is boring
- because it is boring, few people will be able to follow it. That happens all the time. Even if people say that they want to make money, it is not true. Most of them look first for excitment and then to make money. This strategy is for people who first want to make money and can have excitment in other parts of their live beside trading.
- as a corollary compare the number of posts in this thread compare to the loosing Steinitz EA. Less posts = good sign.

I had hoped my $25,000, 0.1 core-sized demo would survive but found today that martingale level 6 had been attempted and half the account had been flushed down the toilet!

And yes, I know this was too small an account for this core-size - now at least, at the time I thought the 'recommended' ratio was being overly conservative

I am going to try 0.05 core lotsize instead. Pity there isn''t a way to auto-detect when 'Safe-mode' should cut-in...

jlpi, thanks for that. A nice gain for such a small period, especially when it's real money

That's why I would recommend to use only safe mode(s) because if you detect that you have to switch to safe mode when you are already in level 3 or 4 it maybe too late.

Hi,

I’m testing the Ctrader_V02 posted by barnix (by the way, thanks a lot barnix) with the default settings, and apologise for the maybe silly question, but what do you mean by “safe mode”, decreasing the lot size? Could anybody explain me?

Thanks

No martingaling takes place - all secondary order lot-sizes are generally set to the core lot-size - in vtam's strategy description, 0.2 lots.

When things go right for this strategy, it's spectacular - up over 3% today alone!!!!!

Demo - I hasten to add...

Yeah - stick to safe mode only...... and it will make money. Binary method is possible also. We are running a few tests with modified binary that show incredible results. Will post in a few months once I have more data.

You're welcome! No problem. And I think your conclusions are correct. This has been advertised as a boring strategy, which means most will either over leverage it, or not even follow it.

My conclusion - Don't veer from safe mode!

CTrader state

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