Strategy Tester - Martingale

Posted By ViennaCalling Monday, December 12, 2011
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ViennaCalling
 Posted Monday, December 12, 2011
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The Martingale factor has to be programmed into a strategy. It would be nice if this was a default Strategy Tester setting.

Happy Pipping!

"Money isn't everything, but it sure helps alot!"
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Admin
 Posted Friday, January 06, 2012
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Dear GregorAnton,

Could you describe your idea in details: how do you think Martingale should work? What parameters should it have? etc...


Best regards

-ACTFX© Forum Administrator
black
 Posted Thursday, May 31, 2012
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The name Martingale refers to a guy who developed a no-loss method whereby you double the Amount (Lots) of every losing trade on the following trade until you get a win. When you get a winning trade, you set your amount back to "1."

Regarding the Forex, the Martingale could be set to any number or decimal, such as 3.7 or 9.8 or anything. If you broker did not allow trading in partial lots, the Amount could be truncated and the fraction carried and added to future trades.

For example, let's say that you set Martingale at 1.5. Upon a losing trade, the 1.5 would be truncated to 1 for the following trade. The 0.5 would be carried in memory until the next losing trade where it would be added to the new Martingale of 1.5. The Martingale on the next losing trade would become 2, which, as an integer, could be added to the next new trade entirely, zeroing out the memory.

Using 1.5 as the Martingale would produce the following amounts if you had 5 losing trades in a row, if your broker did not allow partial lots.

Losing Trade 1: Total Martingale Amount generated = 1.5; Usable Amount = 1; Amount carried in Memory = 0.5.
Losing Trade 2: Total Martingale Amount generated = 1.5; Usable Amount = 2; Amount carried in Memory = 0.
Losing Trade 3: Total Martingale Amount generated = 3; Usable Amount = 3; Amount carried in Memory = 0.
Losing Trade 4: Total Martingale Amount generated = 4.5; Usable Amount = 4; Amount carried in Memory = 0.5.
Losing Trade 1: Total Martingale Amount generated = 6.75; Usable Amount = 6; Amount carried in Memory = 0.75.

If you had used 2 as the Martingale on 5 losing trades in a row:

Losing Trade 1: Total Martingale Amount generated = 2; Usable Amount = 2; Amount carried in Memory = 0.
Losing Trade 2: Total Martingale Amount generated = 4; Usable Amount = 4; Amount carried in Memory = 0.
Losing Trade 3: Total Martingale Amount generated = 8; Usable Amount = 8; Amount carried in Memory = 0.
Losing Trade 4: Total Martingale Amount generated = 16; Usable Amount = 16; Amount carried in Memory = 0.
Losing Trade 5: Total Martingale Amount generated = 32; Usable Amount = 32; Amount carried in Memory = 0.

The amount of 32 is a lot more risky that the amount of 6. So a fractional Martingale would be desirable.

Smile
Thursday, May 31, 2012 by black
Admin
 Posted Tuesday, June 12, 2012
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Dear Black and GregorAnton,

using of Martigale method should be realized inside the strategy script by handling with Amount variable, but there is no necessity to realize it as a part of external user interface of strategy window or tester.


Best regards

-ACTFX© Forum Administrator
Tuesday, June 12, 2012 by Admin

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