The Martingale is a pure demon that will swallow up everything you have! Well, for years, this was the consensus view of the Martingale. The use of the Martingale leads to reversals, heavy positions, unstoppable losses, and the complete opposite of the classic forex investment ideas of bullish, easy positions, stop-loss positions. However, there are still many people who have shown keen interest in it. Most of them are ignorant beginners, and a few are tech geeks who are proficient in math and programming.
The earliest Martingale EA dates back to an EA called 10point3. It appeared on the Forex-TSD forum in August 2006 and has now reached 470 discussion pages, over 4,700 comments, and a popular firecracker.
The original version of the EA had a simple code, a one-way Martingale (i.e. it is not possible to buy and sell at the same time); the built-in trading rules were: double trading if MaxTrade (maximum trading level) is set below 12 levels; set above 12 levels, with 1.5 times the number of positions of the previous order. The built-in MACD indicator determines the direction of the trade when the current column of the MACD is larger than the previous one; conversely, the open position determines the direction of the trade when the current column is larger than the previous one; the open position determines the direction of the trade when the current column of the MACD is larger than the previous one.
(1) The ReverseCondition parameter is set, which can be changed manually to change the opening direction. When the ReverseCondition is set to 1, the original multi-direction becomes blank, the original blank direction becomes multiple, of course, this also applies only to the first order;
(2) Account protection is set, and the order protection range can be set when AccountProtection is set to 1, and the order can be parked separately for the last order after the order exceeds this range (but retesting this function does not seem to work);
(3) It is possible to set a stop loss for each order, which is, of course, usually difficult to achieve profitability, but it also avoids the problem of people getting sick of the stock market bubble.
10Point3 has been a driving force behind the development of Martingale EA. Many people have tried to modify parameters and add functionality based on this, resulting in many variations of 10Point3.
It is distinctly different from 10Point3 in that 10point3 uses MACD as the primary filtering indicator, selecting the trend direction to enter, and the post-entry price reversal is then solved with Martingale; whereas Swb Grid's primary filtering indicator uses BBand, RSI and Stoch, actively selecting the inverse direction indicator. After entering, the reversal is added to the target at a set distance, no longer using the indicator, otherwise the order will be placed at a large distance, considering that many of the precious return holdings are limited.
Blessing is committed to making some breakthroughs to the traditional Martingale method. From its version 2.5, we see that the direction of this effort is: (i) implementing a fund dispersion strategy; (ii) of course, the Martingale EA seems to be aware that all funds will be allocated to a single currency for the greatest risk, and intentionally set up to manage the funds to be allocated to a single currency; (iii) for example, if a $10,000 account is set to a distance of 5, the EA will limit the funds it manages to $2000, and then calculate the risk in this way; (iv) of course, the Martingale EA is aware that the automated storage calculation will be carried out, i.e. the automated storage calculation will automatically return the funds allocated to the market when the maximum amount of money is set to the same currency; (iv) the automated storage calculation will automatically increase the amount of money used to enter the market; (v) the automated storage calculation will prevent the total amount of money from entering the market when the order is set to the maximum amount of money; (v) the autom
Blessing 3's source code has changed almost completely since version 3.0, with a significant increase in complexity, but it still follows many of the development ideas of Blessing 2. For example, in version 3.8, it can be seen that it still adheres to the funding allocation strategy, the long- and short-line combination strategy, the market orientation strategy, etc. Blessing 3's obvious improvements are: 1) a convenient and detailed interface, which displays a variety of transaction information in a clear way; 2) more filter settings, which can be selected individually and calculate the complexity, but also eliminate the overload of the first single order; 3) multiple order hedging features, which allows the use of a floating-loss or floating-rate platform to be used as an early replacement for a high level of productivity, which makes it difficult to use other platforms, when the value of the order is compared to the value of the store for a certain amount of time.
It is also a one-way Martingale, and its first position filtering position is: 60 points below the 700-period midline in the current time frame (by default, it can be manually set). Do more if 60 points below the 700-period midline; 60 points above the 700-period midline, do nothing. The purpose of this filter is clear: where the deviation is farther from the 700-period midline, the price retracement rate is greater, the reversal distance is short, which increases the probability of profitable reconciliation and reduces the risk.
OM_2Way is a partially flat-out strategy in which one or two profitable orders are usually used to hedge the most loss-making order, with the profit after the hedge being the profit of the trade. This increases the number of positions opened and the number of trades, and the profitability rate is improved. It is worth noting that OM_2Way determines the position of the next order not starting from the starting position, but by calculating the position of the last order, plus the holding amount as the number of orders increases, which results in, although the number of orders on the disk is not large, but due to the large size of the position of the last order, the total holding in the account is excessive.
This EA is noteworthy because it changed the strategy of the previous Martingale EA's monotonically positioned positions and developed the so-called binary Martingale. The so-called binary binary positions are multi- and empty simultaneously, according to the respective set Martingale strategy, or cross- or all-positioned according to the overall strategy. The biggest advantage of the binary Martingale is its high rate of profit, enhanced by the rapid growth of the account balance to hedge and reduce the risk.
In addition, the position calculation and the calculation of the grid distance in Hybrid is also very different from the usual Martingale EA. The distance of the grid is not a completely fixed artificial setting, nor is it an automatic calculation based on indicators, but the factor of the total holdings is incorporated in the calculation, that is, its grid density is reduced as the total holdings increase, thereby minimizing the required flat position return distance; the factor of the grid distance is also incorporated in the calculation of the next order of the grid, that is, the smaller the minimum grid distance of the set MinGridSize, the smaller the delivery distance of its position.
PipMaker is the successor to the BitTorrent EA. However, this only applies to versions prior to 15.0. Since 15.0, PipMaker's trading strategy has changed significantly as the modifier is not the same person as the original author, and the modified PipMaker EA has changed from a bit-torrent Martingale EA to a bit-torrent EA, and even to a bit-torrent EA. Therefore, we will only discuss its strategy in version 10.0 as an example.
PipMaker 10.0, like OM_2Way, adheres to the idea of partial hedging, allowing profit to be hedged at the far end of the loss line without using the entire hedge line. Compared to Hybrid, it has the ability to hedge multiple, empty and separate hedges, as well as multiple, empty and cross hedges, further deepening Martingale EA's strategy. In simple terms, its strategy is: based on the setup of multiple and empty, a grid center line consisting of multiple, or more orders, where the market is seen as uptrend when the price is at the center line, and the order at the bottom of the center line is seen as a hedging target when the majority of the orders are used for hedging losses, sometimes also as profit orders), which is the target for the profit of the order already bought or the target for the profit of the order that has already been bought or the target for the profit of the order that has already been sold, or the target for the loss of profit when the price is seen as a profit, or the target for the loss of profit, or the target for the loss of the market when
PipMaker's strategy is based on four types of hedging: over-loss-over-loss, empty-loss-empty, over-loss-empty, empty-loss, and over-loss-empty. In other words, when an order goes in the wrong direction, in addition to being able to be rescued from the same direction when the market is reversed, it can also be rescued from the reverse order as the market continues to move forward.
The results of the actual testing are the same. PipMaker's many, empty orders are like a grid that moves, with the boundaries of constant change as the price changes. Thus, even if the trend market comes and the price goes out of the thousands, the PipMarker will never pull out the thousand-point grid to sit and wait for the swing, but will constantly flatten a part of the reverse order, following the price forward.
All things must have their ups and downs. PipMaker's strategy of cross-pollination can be described as a fish out of water during small market shocks; during large market trends, although PipMaker is not afraid of bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish
Who would have thought there would be a commercial market? ForexHacked has confirmed this to people: Martingale is by no means a private space of small-scale exchanges, it has a large mass market. The emergence of the EA with Martingale as the core strategy of commercial software may have a deeper context: the market environment is becoming increasingly volatile and the traditional trading concept is becoming increasingly unsuitable for the market. With version 2.3, for example, as a two-way Martingale EA, the EA does not see its essence as different from the Hybrid EA, but it has a clearer set of distance, position, and profit objectives than the successful set of Hybrid orders.
By the way, ForexEnvy (also a trading software) has obvious similarities in both strategy and coding style. The biggest advantage of ForexEnvy is that the distance and position of all orders can be freely set individually, giving greater flexibility.
Since its inception, Martingale EA has developed almost along a complicated path: (1) time filtering, including Monday-Friday trading day filtering, trading hour filtering, time filtering, non-day filtering, non-weekly money orders, etc. The Indo Run pushed this complexity to the extreme: its almost 200 external settings were difficult to understand and master. However, it was observed that Indo Run mainly developed a variety of filtering technologies: (1) time filtering, including Monday-Friday trading day filtering, trading hour filtering, time filtering, non-day filtering, non-weekly money orders, etc. The Indo Run has a very careful filtering approach, although it can be used to a limited extent as news events occur, and is often influenced by the market dynamics of the trading technology.
A summary of Martingale
After introducing so many well-known Martingale EA's, you may be disappointed: none of the EA's have really solved the problem of the bursting of the bubble!
My view is: Martingale EA's destiny is to blow up the shed, which is not going to change in the past, present or future. Just like a person's destiny is to die. But dying doesn't prevent people from living a wonderful life. Likewise, although Martingale EA's destiny is to blow up the shed, it can be used well, used well, and made money.
The current Martingale EA has moved from the stage to the table, from the private to the commercial, as a result of the change in the market environment. Remember when an investment master recalled the market environment of his younger days: when the market was not so volatile, the rise was a continuous rise, the fall was a continuous fall. Look again at our Forex market today, it can be said that it is completely double day.
Many people say that a good Martingale combined with good money management can beat the market bull. This is true, but it seems not to be true. Money management can help the Martingale survive in the market for a few more days, but not beat the market. Other techniques are very important in addition to money management. Today's Martingale is no longer the blindly coded robot maniac that people imagine, but incorporates more intelligent factors. These factors are reflected in the EA described above, such as: ((1) limiting the speed of the build-up and the total position; ((2) more double hedging; ((3) more currency hedging; ((4) partial position flattening or loss;)) reducing profit targets or tracking the bull; ((6) artificial trend judgement;)) 7) timely trading signals; ((8) intelligent trading strategies;))) and so on.
It is not a contradiction that Martingale's strategy, while destined for a bull market, can work. One of the key techniques is to perform integrated fund management and allocation to gain a probability advantage over the market, rather than a general-purpose hedge fund management strategy.
For example, for an account with a capital of 100,000 yuan, trading with Martingale EA at a 10% interest rate per month takes 10 months to earn twice the profit, and after extracting all this profit, you can save and avoid risk. Therefore, only in the period of 10 months of trading, without any extreme market volatility, you can be truly profitable, otherwise you will lose.
However, if you divide this $100,000 account into two A, B accounts, each trading with a Martingale EA, the requirements are: A, B, and A must be in the opposite direction of the trade. This way, in the event of a volatile market crash, only one account will go bust, and the other account will profit as usual, with a loss rate of 50%. If you calculate the rate of profit of 10% per month, as long as you have been profitable for five consecutive months and withdraw all profits, you can save and get out of risk. This is much easier than the previous conditions.
If we divide the above 100,000 USD funds into four accounts, A, B, C and D, and trade with two Martingale EA's, respectively, where A and B have the same trading direction, but different settings and entry points; C and D both have the opposite trading direction to AB, but different settings and entry points. Thus, in the event of a volatile extreme market trend, A, B or C and D accounts will be threatened. However, due to the difference in settings and entry points, in practice there will usually be no less than a 50% leverage leverage.
It may be said that 10% per month is too high a target for a Martingale EA and increases the risk. This involves the problem of a hedge fund allocation. We all know that Martingale EA has a very low capital utilization rate most of the time due to its small initial position, very low floating rate, and very low capital utilization. Sufficient funds are kept in the position in order to protect against extreme hedging.
Of course, to really use the Martingale well, it is necessary to combine artificial trend judgement and adjust the parameters in a timely manner to adapt to market changes, reduce the probability of a bull market, and improve the survival rate of the bull market. In short, the Martingale bull market is not to be feared, as long as the frequency and probability of such a bull market occurrence is within a limited range, and the losses caused by it are far less than the profits earned during the appropriate trading period, the Martingale strategy can be continuously profitable.