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How to Make Martingale EAs Safe.

elvee4eva

Member
Hi to all.

I have been backtesting and forward testing the Eracash Robot Professional versions 2014 and 2015.

While 2014 version is more profitable than 2015, 2015 is safer and more conservative and more advanced.

I have successfully doubled $100 accounts using only 0.01 i.e. 1 micro lot in just 9 trading days with 2015, while

I achieved the same result with 2014 in just 7 trading days.

Currency pairs tested are

2014 EUR/USD 5 mins Chart

2015 GBP/USD and NZD/USD 5 mins Chart


Trading Concepts used by Eracash Robot Professional 2015

1. Breakout Trading in the direction of the trend. ( Take Profit = 10 pips)

2. Pull Back trading, in the direction of the prevailing trend.

3. Incremental scale in, 15 pip gaps on every pullback, with the last scale in having the biggest lot entry/risk,

with the hope that the trend will soon return.

4. Auto Adjusting the take profit level to more realistic levels so as to take profits faster and get out of trouble

quicker, especially when the trend is reversing while making sure that at least a small overall profit is made.

5. Using trailing stop to secure profit already made, no matter how little, especially when the EA is trying to

recover from a huge drawdown.

What this Great EA lacks.

This EA is excellent for both trending and ranging markets, but lacks the ability to handle sudden sharp price reveals. it can handle normal slow and gentle reversals, but it is incapable of handling sudden sharp long spikes in the opposite direction.

Solutions.

1. This EA needs a flexible hedging system that will only be triggered once price reverses to a certain point against the trend or once equity is down to 70%.

Once this happens, if the EA was previously opening BUY orders in this manner

Ist order BUY 0.01 at 1.2575

2nd order BUY 0.01 at 1.2560

3rd order BUY 0.02 at 1.2545

If price drops to , let say 1.2530, this would have resulted to a loss of about -45pips -30pips -30pips = -105 pips.

What the EA needs, is for someone to help us code a Hedging/Reversal Methodolgy, where, The EA begins to

gradually open opposing orders while trying to balance out the loosing positions by closing them one by one.

For example, in the above situation where the EA is already -105 in loss, the EA should quickly close the 1st

order i.e. 0.01 at 45pip loss and open a new order of 0.04 with a 10 pip profit target. If this hits it target, the

loss from the first 0.0.1 would have been neutralised.

Next the EA should open another sell order of 0.04 with a 10pip target and immediately close the 2nd 0.01 order.

After taking profit on the second order, the EA should then close the 3rd order at -70pips loss then immediatlely

open a sell order of 0.08 and aim for a 10 pip profit.

If this last take profit is achieved, then the EA will have successfully recovered from a losing position and is now ready to continue making lots of money in the new trend.

If someone can code this, then this Robot forex professional 2015 will be the greatest Robot ever created.

Note that even with the presence of this shortcoming on the part of this EA, A careful trader can still grow his or her account endlessly in the shortest time possible, by frequently withdrawing his or her profits as soon as they are large enough, so that if the unthinkable happens, the trader would still have benefited greatly.

If this request is implemented, It would mean the end of our collective search for a profitable EA.

Here are the Download Links

[2015 Robot]



Thanks

Elvis
 

stovedude

Active member
We'll have to look into this a little further. Martingale is in itself not a bad idea. We use it everyday in normal life. For example, if we push on the couch to move it where our wife wants it this week:(, and it doesn't move, we usually add more force. If that doesn't work, we either smash it to pieces with a sledgehammer or we do the right thing and command (politely of course) our wives to help push. Of course, if that still doesn't work, we get a MC (Mad Consequence:mad:) from you know who, from which it will take some time to recover!:eek:
Like you stated above, there are better ways of handling things.
 

Merlin

Member
Something like this EA might be worth investiagting. Indicator based hedge/martingale system.

 
Again speaking as a newbie, so forgive my simplistic language.

At the same time I hope to represent other newbie readers who are overloaded with all the EAs here.

My experience so far is that more than 50% of EAs suggested here don't seem to be very responsive (wait the whole day still no trade). Could by my fault. The only non-martingale EA I'm still demo-running is ForexHacked.

Apart from that, the martingales always get my attention. Then again, the ilans (look for ilan thread) keep consuming large margins, partly because it's not so smart at making directional guesses, then it gets stubborn all the way. Correct me if I'm wrong, margins are largely determined by the broker who set aside the number of pips for all open trades, something like that.

Anyway, I second Elvis' suggestion. If there's anything we can do to keep margins down and get martingale EAs smarter and conservative. I can just keep making 10 cents per closed pip all day and that still adds up to $70 in a whole day, so happy :) (last tested with ilan)
 

ruparaw

Member
We'll have to look into this a little further. Martingale is in itself not a bad idea. We use it everyday in normal life. For example, if we push on the couch to move it where our wife wants it this week:(, and it doesn't move, we usually add more force. If that doesn't work, we either smash it to pieces with a sledgehammer or we do the right thing and command (politely of course) our wives to help push. Of course, if that still doesn't work, we get a MC (Mad Consequence:mad:) from you know who, from which it will take some time to recover!:eek:
Like you stated above, there are better ways of handling things.

.......
3. Incremental scale in, 15 pip gaps on every pullback, with the last scale in having the biggest lot entry/risk,

with the hope that the trend will soon return.
.......
Elvis

but if the market was keep in side way for more then a month, at that time you will be like just a man hopping and awaiting your ex girlfriend/divorces wife to comeback to you but in your deep heart it won't !! :(:p:cool:
 

823

Member


....This is the last v. 1.26 educated (no dll required)





:D
 

ruparaw

Member
the only best way to survive martingle is keep pull out(wdrw) your profit say weekly or so if you got a profit...then reinvest again if mc.....anybody backtest it....mine pc to slow to backtest. :D
 

ruparaw

Member
unfortunatly it wont :(. mine backtest from july 2010 todate with a default setting started with 1k at 0.01 lot initial fall down :eek:

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Squall

Member
Did some backtesting and it looks great if you stick to the rule of:
0.01 lots per $5000 margin (manual says $4000 should be ok but be safe about this).

I haven't done any 10 year backtest yet but i might run one tomorrow when I leave for work.

Off Topic: The large margin requirement rules it out for me unless I can find a broker that can provide MT4 and 0.001 lot size. (if they had 0.01 I could use $500 but I don't want to risk that much on a martingale until I trust it). If someone knows of a reputable broker that would suit my needs please tell me.
 

Tinojazz

Professional Trader Since 2007
VIP Member
Martingalle cannot be safe. Never!!! even in manual trading!!!
I just want to short your trip to be a real trader. Every martingalle strategy or EA 100% will meet black swan. Whatever account size you have!!!!!
remember this!
 
if you use martingale systems ,be sure u lose ur money,so we should design an strategy to either cut loss the opened positions or find an algorithm to manage the loss (with hedge or...) and start again the EA,,,,,
 

kbless

New member
We'll have to look into this a little further. Martingale is in itself not a bad idea. We use it everyday in normal life. For example, if we push on the couch to move it where our wife wants it this week:(, and it doesn't move, we usually add more force. If that doesn't work, we either smash it to pieces with a sledgehammer or we do the right thing and command (politely of course) our wives to help push. Of course, if that still doesn't work, we get a MC (Mad Consequence:mad:) from you know who, from which it will take some time to recover!:eek:
Like you stated above, there are better ways of handling things.

i have been getting great results with Ilan 1.6, but only closely managed and monitored. A good news filter, time filter, day filter, and a 'Close at end of cycle' input would allow me to leave it on more of the time.
 

salc

New member
Robot Forex 2015 Pro, has the same functions as ILAN. Many of the martingale systems i saw have those functions.
 

fxmoola

Member
I think many EAs especially martingale-based need to filter events. Do not try to trade them during high volatility. But of course, surprises happen. My EAs are commercial and banned from posting in this forum. I do not even want to mention the names as searches will pull people to this site and associate me with them. I like to stay active in this forum (though time constraints do not allow me to be very active) and allow it to still be online so we can learn together and be aware of scammers selling worthless systems.

Martingale-based strategies..and I have a few..must have several ways to protect the account and ways to space out the grid spacing or get out of larger trades when they are placed. They will always be higher risk and require a higher leveraged account, which for USA traders is difficult to have.

Always back-test and forward test awhile before any live trading. And be careful to not over-trade your account..if possible :)
 

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