Wednesday, 31 October 2012

Loss averaging martingale trading systems

I see that more and more people are using loss averaging martingale systems. In principle I am against this method, especially if it is used in trading systems that don't have any other logic... Basically due to the spread those systems are doomed to fail, spread works here like 0 (green) in roulette.

It is a popular method of trading GBPUSD which is ranging since second half of 2010. Here is an example:
http://www.myfxbook.com/members/rsmereka/forex-hacked/218967 Adding also a screenshot - usually those systems are removed just after blowing up the account:


Description of three best three best martingale systems:

System 1: tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok BANG!


System 2: tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok,tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok,tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok, tik, tok  BANG!

System 3: tik, tok, tik, tok  BANG!

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