[icarus]

This really is great advice to any novice in forex esp splitting your account up (if you really want to run martingale money management) could i also surgest starting with the smallest of the small miro lots and go from there...it may not be the instant "big bucks" that many look for in forex but it IS the way forward.

good luck fellow traders

Nathan aka Icarus

Originally Posted by spiritfriends

Hi everyone,

As I said in my first post,I've been trading in something for the last 20 years and gravitated to forex about 4 years ago.I will share some advise to the beginners which I have experienced first hand and may save you thousands of dollars.
Until you are a seasoned trader,stay away from MARTINGALES !Whether it's called 10.3,terminator 100 point and the list goes on, it's not a matter of "IF" EA's with martingale will blow up your account,it's only a matter of time to "WHEN" it will blow up your account.This also includes custom progressions and fibo scaling.They can double and triple your account in a very short time,sometimes only weeks but then WHAMO it can take it in less than a day.I have trading friends that only trade it by the day. They start with a $500 account and set the Ea going and whatever the profit is after 1 day they bank it and leave the $500 in the account for tomorrow.There are variations of a week or more but then the risk to reward ratio is in the favor of the broker.This is not a recomendation how to trade but an opinion.
Just some info that suggests it's a bad time to trade martingales is,the Japan goverment is considering a rate hike maybe as early as this week.If this happens we could see another round of the carry trade unwinding and chaos starting all over again.There has been talk also that the GBP/USD should be in the 204-205 range and the GBP/JPY cross pair climbing to 217.Now this is info thats available but are you prepared if the US government infuses another X billion into the markets and there are many other variables that could surprise us.All I'm saying here is there could be dramatic moves with substained trends without retrace that will blow up a martingale faster than it took to deposit the money.
So to hetfield and many others here,by all means take any Ea and demo it to death before you put any real money out there.Slow and steady wins the race.Remember to have a plan.Some food for thought, one standard lot and a capture of 15 pips is $150 give or take with the exchange of the pair chosen a day.In a week $750 if you do that once a day.$3000 a month,$36,000 a year.Now increase the lot size instead of looking for those 200 pip moves and at 5 lots your talking around $200K a year.

Good Luck,

David aka spiritfriends