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CAD-Trader.com

Discussion in 'Forex Software' started by Administrator, Apr 20, 2011.

  1. PETECH90

    PETECH90 Recruit

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    I bought this EA... and the EA run correctly. I will never suggest anybody to buy it as well as any other EA. You have to understand this EA and the risk for your money if you have a big move like 300-500 pips with no retracement (please read all my previous comments). From the time I am using it, i am very happy as CAD/USD is staying within a trading range. Also, I suggest minimum deposit of 1000-3000 and use it with 0.01 lot. This EA allows you to change many parameters or you may use it for other currencies (but be careful to the volatility). I hope this will help you within your choice of buying it or not. .. It is a reliable EA but no guarantee that you will never blow your account... like all EA applying the same method... martingale. My first trading day result has paid the EA.
     
    #11 PETECH90, May 23, 2011
    Last edited: May 23, 2011
  2. MichelAnge21

    MichelAnge21 Sergeant

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    A system based on a martingale will ALWAYS blow your account eventually. If you re lucky and the EA made some profit initially, then withdraw your initial deposit and let it run until it blows the account just as a useful demonstration that there s no such thing as a " Holy Grail of Trading ".
     
  3. PETECH90

    PETECH90 Recruit

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    MichelAnge

    I agree with MichelAnge comment... therefore.... once more, this kind of EA has to be used with very small amount regarding to the deposited amount and it shall not blow the account. The account owner needs to check what happend and sometimes has to take the right decison (this EA also have very clever parameters in order to control the deals and to stop according to the given parametets). I am confident as I understand the risk of this kind of EA.

    I also will be happy to make 50% profit per month.... but I prefer 5-10% and not to blow my account.... and also I am playing a little with it ... by taking some profit manually. People have to be a little clever !!!! and have to calculate. Also, on FPA, the EA seems to take a new deal each 11 pips.. it can also be 20 - 50 or what ever as it is based on average

    THIS WAS MY LAST COMMENT ON THAT TOPIC... AS I HAVE NO MORE TO ADD....
     
    #13 PETECH90, May 24, 2011
    Last edited: May 24, 2011
  4. Romeo

    Romeo Sergeant

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    Martingale "like" systems can be profitable if used correctly. It is just a matter of Profit Target, Stop Loss and money management of the system. If you have a clear way how your system will work, then it is just another system and it will not blow your account.
    For example, the EURUSD is now at 1.4200 and it is expected to make a bullish move. You Profit Target is 1.4700 and your Stop Loss is 1.3700. An idea would be for example to place a buy trade at this level and place a double trade if it moves 250 pips against you at 1.3950.

    Let's say you enter the first trade with 0.01 lots and the second would be 0.02 lots.

    If it hits your SL, you lost a total of $100.If it hits your target without moving 250 pips against you, you have $50 profit. If it reaches your second trade, but doesn't hit your SL, you have $200 of profit.

    If your account is $2000, it means that you are risking 5% of your account. Considering that it affects 2 trades, you are risking 2.5% per trade, which is acceptable money management. Taking also into consideration that you are placing a long term buy trade on the EURUSD there will be also some earnings on the swap.
     
  5. MichelAnge21

    MichelAnge21 Sergeant

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    Romeo

    What you just described is not a true martingale because, in your system, you start anew with your next trade after you hit your SL with the 100 dollars loss. A true martingale keeps track of ALL THE LOSSES that occurred since you began a cycle. You start anew ONLY when you hit your first goal of profit ( like when you make that first 50 dollars profit and now you look for the next trade )

    A true martingale, after losing 100 initially, will KEEP IN THE ACCOUNTING SYSTEM: "cumulative loss=100" and the strategy will be to recoup the loss before you can start anew with a new cycle. You reset the accounting system only when you are in the black.

    The simplest martingale is the good old " double up " like we flip a coin together and I lose 1 dollar. I say " double up " and I lose again. Now I m 3 dollars in the red ( 1+2). I keep doubling and I keep losing 1+2+4+8+16+32 etc. Eventually I win ONE TIME and I put in my pocket 1 dollar profit ( losses: 1+2+4+8+16=31 and I win at 32. 32-31= 1 profit ). Only THEN I ll challenge you again with a 1 dollar wager. It s a new cycle.

    There are all kinds of martingales and most are a lot more complicated than the one I used as a simple example. But their common denominator is they all use a mathematical system where the amount of money you lost since you began a cycle will have an influence on the size of your bets and your money management until you are in the black. And the martingale is defeated when there is a long string of losses that depletes totally the purse: it s called " gambler s ruin ".

    Like in my ( very simple ) example, I can call " double up " with you only up to the amount of money I have in my wallet.

    Your " martingale " resets the cycle after a mere 2 losses ( only 1 double up ). In my opinion, such cycle is too short to be a martingale. Only if a future trade ( not necessarily the immediate next one ) starts mysteriously with a modified starting point ( like .02 lot instead of .01 ) it is a martingale. The best way to know an EA is of the martingale type is to look at the progression curve. If you see your account growing slowly and steadily for an extended period and then there is a large drawdown that is rather sudden, you have a martingale. The martingale might recover if you dont touch bottom and it can actually make you money for a long time before it collapses definitely. By the way, some martingales use the INVERSE principle ( my favourite for an evening at the casino ). You would then observe your account going in the red slowly and a sudden short period when it would grow exponentially.

    Now, as you noticed, I do use a martingale for gambling but I never bought an EA for Forex. Why ? Gambling is for fun only and I know very well that the casino always win long term against me even if I beat the House many evenings. I treat Forex as a game of skill and knowledge not a game of mathematical probabilities.

    Using a " martingale " necessarily introduces an element of mathematical probabilities in your money management. Myself, I often cannot resist the temptation of increasing the size of my position with the idea that a small reversal of the trend will allow me to break even. Looking back at my 12 months of manual trades, I certainly got out of trouble quite a few times that way. Then, there were also the few outright disasters when I only made a big loss with a small one and I am in the process of changing my thought processes to eliminate such psychological flaw for the simple reason that the few " disasters " outweight the many " saves ". The only elements of mathematical probabilities that I want to keep are: 1) Risk VS reward ratio and 2) Maximum percentage of the account on any single trade.

    I trade based on the fundamentals and traders who are of that kind can be obstinate when they trade against the trend because they are convinced the fundamentals will eventually prevail over " sentiment ". Being obstinate in that way is dangerous: look at Henry Liu...
     
    #15 MichelAnge21, May 27, 2011
    Last edited: May 27, 2011
  6. Paul Flanagan

    Paul Flanagan Recruit

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    Does anybody use different settings with the EA or just the standard settings?
    I have a 3000€ account, and I think I will leave it with Moneymanagement on, or should I set a fixed lot size?

    Thanks in Advance!
     
  7. Romeo

    Romeo Sergeant

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    I know what you mean, that's why I mentioned the word "like" in my post.
    If someone uses a part of the theory with correct trading rules and money management, it can be profitable on the long run.

    If someone is using the theory as it is, it is not trading any more, but gambling! And for sure he will blow any account.
     
  8. dabella

    dabella Recruit

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    BTW, if this EA just open positions with certain separation until a profit target is achieved and then repeat the process all over again, as it seems based on the live demo, IMHO is pretty simple in terms of programing and well overpriced.

    One can find a lot of similar EAs for free.

    :confused:
     
  9. ItradeFx

    ItradeFx Recruit

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    I am wondering why there are so few comments on this EA? Human intervention is more likely to cost you money then make you money unless you are a disciplined trader. Great post MichelAnge21

    .
     
    #19 ItradeFx, Jun 25, 2011
    Last edited: Jun 25, 2011
  10. aicohn

    aicohn Corporal

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    A grid, not a martingale

    All the positions taken are the same size. This is clearly a grid system, not a martingale. There is a difference.

    Of course, a grid can certainly blow your account just as effectively. The only thing standing against that is the emergency SL feature that closes the whole grid when a certain drawdown is reached.
     
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