Money management strategies. Martingale. - page 3

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paukas >> :

Martingale - increasing the size of a bet (position) when you lose.

Short and simple.

And the sequence of pending orders 1-2-5-11. what is it?

Can an intermediate loss on a position at the first trigger be considered a loss requiring an increase?

If yes - averaging is also Martin.

It's not all clear to me, to make it short. ;)

 

I'll point out right away that the 1-2-4-8 sequence... doesn't quite make sense to me.

Then it's 1-2-5-11-23... :)

And so on through each sentence.

Perhaps we could define it differently, for example:


M[i]=M[0]+F(K,M[i-1]), where -

M[i] is the size of lot at the i-th step,

if, for example, function of increase F(K,i-1)=K*M[i-1], where -

K is the power of increase, ( case K=2. Then it will be 1-3-7).


In games with prize-fixing, simply doubling the stake increases the risk incommensurate with the fixed winnings - M[0].

In forex

It is probably best to consider Martingale as a way of increasing the size of an aggregate position where the anticipated winnings increase with each increment.

 

Each martin entry is essentially a separate system (along with the subsequent exit). And you can and should test the toppings separately. Martin is effective when each subsequent entry is more effective than the previous one. More efficient of course in terms of return/risk, e.g. PF. Increasing the position would be with increasing the advantage.

 
lot = 1 K= 1
Profit(P)

Profit/Ka

feed(C)


 K=1.5
P P/C K=2.0
Р
 P/C K=2.5
P P/C K=3.5
P P/C
step = 0 1
1 100% 1.0
1.0 100% 1.0
1.0 100% 1.0
1.0 100% 1.0
1.0 100%
step = 1 2
1 33% 2.5
1.5 43% 3.0
2.0 50% 3.5
2.5 56% 4.5
3.5 64%
step = 2 3
0 0% 4.8
1.3 15% 7.0
3.0 27% 9.8
5.3 37% 16.8
11.3 51%
step = 3 4
-2 -20% 8.1
-0.1 -1% 15.0
4.0 15% 25.4
11.1 28% 59.6
37.4 46%
step = 4 5
-5 -33% 13.2
-3.2 -11% 31.0
5.0 9% 64.4
24.8 24% 209.7
127.8 44%
step = 5 6
-9 -43% 20.8
-8.8 -17% 63.0
6.0 5% 162.1
58.0 22% 734.9
443.3 43%
step = 6 7
-14 -50% 32.2
-18.2 -22% 127.0
7.0 3% 406.2
140.1 21% 2 573.2
1 546.7 43%
step = 7 8
-20 -56% 49.3
-33.3 -25% 255.0
8.0 2% 1 016.6
344.2 20% 9 007.1
5 407.5 43%
 

But this table does not reflect the specifics of forex! There is no loss yet (with sufficient capital!), i.e. the gain will be quite different, which means you have to count from position averaging and depth of pullback. And the results are completely different. (added: really not an eagle.)

I haven't found anything formalised on this topic here yet...

 
Sorento писал(а) >>

But this table does not reflect the specifics of forex! There is no loss yet (with sufficient capital!), i.e. the gain will be quite different, which means you have to count from position averaging and depth of pullback. And the results are completely different.

On this subject I have not found anything formalized yet.

What do you mean by "there's no loss yet"?

 
paukas >> :

What do you mean, "It's not lost yet"?

>>. ;)

But you didn't answer my question. That's why you didn't understand.

 
Sorento писал(а) >>

Overstaying our welcome. ;)

But you didn't answer my question. That's why you didn't understand.

I answered it in a post just before yours. It doesn't matter if the loss is closed or not. The market doesn't know about it.

So if you're sitting on it, it means you made a loss.

 

Speaking of over-sitting... ;)

To what depth of unallocated loss should we consider it a market fluctuation, or an acceptable drawdown, and from what depth should we consider it over sitting (with a negative connotation to it)?

The term is blurred in definitions, which means you can throw it around however you like. :0)

 
Sorento писал(а) >>

Speaking of over-sitting... ;)

To what depth of unallocated loss should we consider market fluctuation, or acceptable drawdown, and from what depth should we consider over sitting (with a negative connotation to it)?

The term is blurred in definitions, which means you can throw it around however you like. :0)

It's simple - up to the size of the expected loss.

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