The Martingale strategy is quite well known and many traders have come across it at least once. You can find trading strategies based on martingale almost everywhere, from regular accounts of novice traders to professional accounts that manage tens of millions of dollars.
Martingale is a trade management strategy that involves increasing the size of a position after a loss. In the stock market and forex, this strategy looks a little different. A trader opens a buy deal, if the price moves up and reaches the take profit level, then the deal is closed with a profit and a new deal is opened, if the price moves in the opposite direction, then after a certain number of points a second deal is opened in the same direction but with a large volume. The point is that when trades are opened against the trend, with an increase in volume, the average position price changes, and the closer the average trade price to the current price, the more likely the price will roll back and it will be possible to close all trades with a total profit. The more aggressive the martingale is, the closer the average price to the current one and the more likely a small price rollback will hit take profit, especially in the foreign exchange market.
Forex Martingale is the most common due to the high volatility and the frequent lack of a clear trend that is perfect for this trade. The martingale system is very simple, versatile and gives very good results, but not for long. As long as the market is calm, this strategy will consistently bring profit, but just one sharp price movement and the deposit may not withstand the drawdown and trades are closed by stop out. The fact is that this is a very risky strategy and without proper control it is almost guaranteed to wipe the entire deposit. But many traders, especially beginners, want to accelerate the deposit as soon as possible and want to make a profit now, this is where “martin” can help, but not for long.
Trading with martingale has long been automated and you can find thousands of variations of such robots on the Internet. They are almost all the same and cannot work stably. The fact is that in its pure form, martingale is very simple and obviously cannot be a full-fledged trading system that brings stable profits with an understandable risk. Our colleagues from Swixtech have been developing trading systems for a long time and have finally created a decent trading robot based on the martingale system. The essence of the strategy is to trade in both directions at the same time, i.e. simultaneously Buy and Sell, at the same time, separate opposite positions are opened for a series of deals in each direction. Opposite trades serve to reduce the margin and drawdown, in addition, the system dynamically changes the parameters for increasing the volume for all trades, which allows you to further reduce the drawdown. It is impossible to implement such a strategy manually by trading, therefore the Swisschoco trading robot was created.
The advantage of this EA is that it preserves the profitability of the classic martingale and makes it much safer. Do not expect him to make huge profits, the developers recommend sticking to conservative expectations of 3-5% per month with a deposit of $ 10,000. An excellent option for investment, in which the risk is unlikely to exceed 40% at the moment. He can survive large drawdowns and keep the deposit, which is the most important thing.
The Roleks and Goldman trading robot was developed on the basis of the Swisschoco advisor, but they use a stripped-down version of the original advisor and do not use reverse trades, but still show decent results.
Most importantly, always remember that trading robot will do the work for you but do not over-inflate the risks in the pursuit of greater profit and you will have to wait for success!