This is a martingale EA that I made for Gazuz a few months ago. I haven't been able to get a hold of him lately, so I was not able to ask him if it was okay to post the system. Rather than having it sit around on my hard drive, I thought I would post it up on this forum. The following is Gazuz's explanation of the system which I coded:
Quote:
Buy and Sell X lots (determined by a variable "A") this means we will go in both directions from the beginning, a sort of hedging minus the spread. Set a take profit at X pips (other variable "B"). Once one take profit is reached, for the sake of argument it went up B pips, The close the BUY position, open another one and close the SELL position. Now re-open BUY position with A lots and open a SELL position with A*C lots (C is a variable to mutilply the number of lots by) resulting in having a net profit of 0 minus the spread, instead of just the loss or just the gain. Later we keep applying this algorithm. If the price goes up again B pips, the BUY position is closed with the profit and the SELL position is closed with the loss, we re-open another BUY positionn in intialy lots. Now we open a SELL position with A*C*C (it keeps increasing until that position wins). Now lets assume that the price falls B pips, the sell position closes with a profit and hypothetically should cover the losses plus the intial profit (depending on our C value). We close the BUY position with a loss. This time we open a BUY position with A*C and open a SELL with A. I'll recap it below in less words and more math.
A=1
B=10
C=2
Open BUY position @ 1.2900 with A lots
Open SELL position @ 1.2900 with A lots
Price goes to 1.2910
Close BUY position @ 1.2910, gain $100*A (1 lot = $10)
Close SELL position @ 1.2910, lose $100*A
Open BUY position @ 1.2910 with A lots
Open SELL position @ 1.2910 with A*C lots
Price goes to 1.2920
Close BUY position @ 1.2920, gain $100*A
Close SELL position @ 1.2920, lose $100*(A*C)
Open BUY position @ 1.2920 with A lots
Open SELL position @1.2920 with A*C*C lots
Price goes to 1.2910
Close BUY position @ 1.2910, lose $100*A
Close SELL position @ 1.2910, gain $100*(A*C*C)
Open BUY position @ 1.2910 with A*C lots
Open SELL position @1.2910 with A lots
Price goes to 1.2920
Close BUY positon @ 1.2920, gain $100*(A*C)
Close SELL position @ 1.2910, lose $100*A
Now I think thats enogh I proved my point, using real numbers if we start with lets say $10,000 we would end with:
$100 - $100 = 0
$100 - $200 = -100 = -100
-$100 + $400 = +300 = +200
+$200 - $100 = +100 = +300
+$300
by buying and selling
versus the original of only chosing one side which results in:
Sell only:
-$100
-$200
+$400
-$100
=+$100
or
Buy only
+$100
+$100
-$100
+$200
=+$300
This means whatever way it goes, we will make profit as much as possible and not go as negative as we would in the original Martingale case
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As with most martingale, a sustained trend in either direction will hurt your account big time. If anyone wants to test it, I would really appreciate it. You can post up some account statements if you decide to.