Proof Forex bots use martingale strategy

New comment
 

Hello friends,


If you did some research on trading bots you might have noticed the steady growing equity curve of most bots with some big spikes inside.

I always wondered how most bots turn a profit and found out about the martingale gambling strategy.

With martingale you start with a x amount of money for example 10 Euro and you win this amount everytime you are right but if you lose you double the bet until you win back all your losses.

Ofcourse eventually your luck runs out and the account blows up and you lose all your money.

Today i will demonstrate how most forex bots are actually just gambling machines so i went to: https://www.onlinegdb.com/online_c_compiler

And wrote this code based on the martingale strategy with 50% chance of winning:


#include <stdio.h>

int Balance = 1000;
int Risk = 10;

void main()
{
    
    while(Balance > 0){
        
        if(rand() %2 == 1){
            
        Balance = Balance + Risk;
        Risk = 10;
        
        printf("%d \n", Balance);
            
        }
        
        else{
            
        Balance = Balance - Risk;
        Risk = Risk * 2;
        
        printf("%d \n", Balance);
        }
    }
}

Then i copied and plotted the resulting numbers in a graph:

(See screenshot at attached files)


As you can see you make a profit just gambling with 50% winrate this is very similar to the results of most trading bots.

I hope sharing this information improves your vision and the risks of algorithmic trading.

 
Magus I: found out about the martingale gambling strategy.

Hedging, grid trading, same as Martingale.
          Martingale, Hedging and Grid : MHG - General - MQL5 programming forum (2016)

Martingale, guaranteed to blow your account eventually. If your strategy is not profitable without, it is definitely not profitable with.
          Martingale vs. Non Martingale (Simplified RoR vs Profit and the Illusions) - MQL5 programming forum (2015)

Why it won't work:
          Calculate Loss from Lot Pips - MQL5 programming forum (2017)
          THIS Trading Strategy is a LIE... I took 100,000 TRADES with the Martingale Strategy - YouTube (2020)

New comment