Sustainable Martingale EA and Strategy

[Flamingopher 20]

Hello,
I would like to invite people with share their experience with various martingale strategies. and their optimal settings.
Aim to start this thread is, to share experiences and seek guidance, as majority of people in Fx community trade Martingale positions but they use wrong multipliers or bad position sizing or wrong TP and Grid setups.
 

[GlitteringBronco 23]

Consider martingale and averaging as a tool but not as a strategy.
There won't be a specific setting giving you a peace of mind money machine. You still need to find a general edge where you can build a strategy upon. Martingale can smoothen your balance curve indeed afterwards, but success here comes from the underlying strategy not the martingale settings.
 

[DrunkRei 21]

I never found the time to test Martingale. Do you earn real money on Martingale? Maybe I should give it a go.

[MurderyWanderer 7]

The big problem with martingale is the fat tail risk!

At some point the market is going to move further than you have equity to support.

[VoyageBoy 15]

Using my own coded systems for years and yes - averaging is part of them.
Despite the general bad image of systems using this technique I am making money here already longterm.

[charlnut 33]

I have been trading Martingale systems from 2015 till date and successfully make money every month but with a large draw down.. the fatal point is when you see large draw down, as markets break all time lows... i know solution to it, as candle close on price open/close on new order in grids, but there ia lot to study on it.

[FlyingSarcastic 51]

Personally I think that systems using static values for operations like setting targets, entries or exits wont be profitable in the long run. You definetely have to adapt considering differences in volatility in some way.

I am not using pure technical grids ignoring basic price action. So a comparison with your mentioned zone recovery approach might be misleading. But implementing an instrument that takes volatility into account is a step into the right direction generally speaking.

Evaluating config values depends on too much variables to make recommendations here. You have to do some number crunching on your own until it fits your personal risk appetite. Just avoid looking for the jack of all trades setup, it does not exist since you always can get on the the wrong side.
Try to get to something that gives you peace of mind when operating and always do extensive backtesting using variable spreads and slippage simulation. The money you spend here is way less than the amount you might lose due to crappy testing.
 

[Lockroach 6]

Regarding the loss. It is vital to understand (of cause you guys does), that we are not loosing every lot we bought. The loss is at the last trade only because we have averaged along the way. If my trade #6 fails, then my loss will be the pips in the TP + the pips in the zone.

[SilverCaptain 21]

When applying grid and/or martingale techniques you are (mostly) adding additional trades to open/existing ones. Doing so you are averaging your price level of getting/beeing in the greens at the cost of an increasing risk by having a larger exposure.

[Coyoteerex 16]

I don't think it's possible to have a profitable & low risk martingale...at one moment you'll end up with a trend, and will never close the last order in profit to make up for all the previous losses...then youre screwed