Martingale system in Forex

[DitterPD]

The strategy had the gambler double his bet after every loss, so that the first win would recover all previous losses plus win a profit equal to the original stake.

Has anyone tried it in Forex? Trade, x2 if loose and repeat?

 

[Pharaoh]

It's a common strategy in forex. Like in gambling, it can be highly successful - until you hit a bad patch and run out of cash.

For example, I could open a buy trade for 1 lot. If it goes up 20 pips, I close and am happy.If it goes down 20 pips, I open another buy for 2 lots. If it then goes up 20 pips, I close the first trade at BE and the second at +20. If instead it falls another 20 pips, I open a new buy trade with 4 lots. If it goes up 20, I close trade 1 (1 lot) at -20, trade 2 (2 lots) at BreakEven, and trade 3 (3 lots) at +20.

In theory, if price keeps moving against me, I just open 8, 16, and 32 lots. No matter how bad a trend is against me, it should retrace 20 pips at some point, thus assuring my profit. The fatal assumption is that price will bounce in my favor before I suffer a margin call. It may not happen today, tomorrow, or even next week, but it will happen sooner or later.

 

[Black Bird]

In Forex trading each outcome is independent of the previous outcomes. For example, if I have 10 or more loses in a row it does not mean that the probability of a win is higher on the next trade.

Therefore, the Martingale is not a good system to use on Forex trading.

 

[Joh]

Has anyone tried it in Forex? Trade, x2 if loose and repeat?

Almost the same system -this seemed to make sense to me some years back - man i was so excited then wiped my account pretty quickly -

slow learner me, then thought if i tweeked it i would do better - i did - you guessed it -blew my another account.

 

[Pharaoh]

If you had unlimited leverage in forex (or an unlimited line of credit at the casino), it would work. The problem is that there are limits and the market (like that little roulette ball) can be very capricious and wipe you out.

 

[DitterPD]

In Forex trading each outcome is independent of the previous outcomes. For example, if I have 10 or more loses in a row it does not mean that the probability of a win is higher on the next trade.

Therefore, the Martingale is not a good system to use on Forex trading.

I think you confuse coin flip/roulette with Forex.

In Forex, you allegedly have higher probability of win, because you have some system and look for trends.

 

[DitterPD]

Almost the same system -this seemed to make sense to me some years back - man i was so excited then wiped my account pretty quickly -

slow learner me, then thought if i tweeked it i would do better - i did - you guessed it -blew my another account.

How big was the blow? 10k won't be enough?

If you had unlimited leverage in forex (or an unlimited line of credit at the casino), it would work. The problem is that there are limits and the market (like that little roulette ball) can be very capricious and wipe you out.

Do you think even Buffet wouldn't survive with this strategy?

 

[FX AVATAR]

Martingale is short way to hell but D' Alembert progression is different story. It is a ladder progression which holds even hell if you have a system which wins more than lose. That means at least 60% winning strategy. The progression ladder is always the same:
Starts with micro 0.01 - 0.02 - 0.03 - 0.04 - 0.05 - 0.06 -0.07 - 0.08 - 0.09 - 0.1 - 0.2- 0.3 - 0.4 - 0.5 - 0.6 - 0.7 - 0.8 - 0.9 - 1 lot. When you lose a trade go one step up and when you win a trade go one step down on the ladder until again at 0.01 lot. That's all! You would have to lose 19 times in row to get wiped off.
I won 1.000' of dollars on roulette with D' Alembert!
CIAO FX Avatar

 

[LoRio]

Martingale is short way to hell but D' Alembert progression is different story. It is a ladder progression which holds even hell if you have a system which wins more than lose. That means at least 60% winning strategy. The progression ladder is always the same:
Starts with micro 0.01 - 0.02 - 0.03 - 0.04 - 0.05 - 0.06 -0.07 - 0.08 - 0.09 - 0.1 - 0.2- 0.3 - 0.4 - 0.5 - 0.6 - 0.7 - 0.8 - 0.9 - 1 lot. When you lose a trade go one step up and when you win a trade go one step down on the ladder until again at 0.01 lot. That's all! You would have to lose 19 times in row to get wiped off.
I won 1.000' of dollars on roulette with D' Alembert!
CIAO FX Avatar

How many have you won in Forex with D' Alembert?

 

[DitterPD]

Martingale is short way to hell but D' Alembert progression is different story. It is a ladder progression which holds even hell if you have a system which wins more than lose. That means at least 60% winning strategy. The progression ladder is always the same:
Starts with micro 0.01 - 0.02 - 0.03 - 0.04 - 0.05 - 0.06 -0.07 - 0.08 - 0.09 - 0.1 - 0.2- 0.3 - 0.4 - 0.5 - 0.6 - 0.7 - 0.8 - 0.9 - 1 lot. When you lose a trade go one step up and when you win a trade go one step down on the ladder until again at 0.01 lot. That's all! You would have to lose 19 times in row to get wiped off.
I won 1.000' of dollars on roulette with D' Alembert!
CIAO FX Avatar

But we are talking here about applying such systems in Forex. Did you try it in FX?