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Thread: Why are martingale egies so hated

  1. #11
    The issue with martingale is that eventually it'll fail and you do not know when. So yes it's possible to make some money for some time but eventually it'll fail it is inevitable. Martingale is not hated it is just that every novice trader believes he discovered the holy grale egy that will make him rich. It can make you a bit of money for some time, but it will not make you rich if you don't bet big and risk it all and have a lot of luck in addition to it, which is basically the same like you would put all of your money on red in a casino.

    My advice is, start with a small quantity and withdraw your entire profits each week.

  2. #12
    Quote Originally Posted by ;
    I've been trading for a couple years and have developed a egy that has a martingale element to it with appropriate money management. For those months I have traded I managed to get my initial investment outside and now I am trading only with the profits . My egy entails weekly withdrawals. This month I managed to get 5x profit(newbie fortune?) Of my first deposit as I did a monthly withdrawal, that made me wonder(self doubt) and create this thread because the general consensus is very negative about martingale established egies. So...
    You Are blessed. Stop now. The gods of standard deviation have turned a blind eye

    when you have an edge, then what worth does Martingale add? , if you do not have and edge, stop trading until you have found one.

    Would you know any basic probability theory? What's the value from your trades? Is it negative or positive?

  3. #13
    Quote Originally Posted by ;
    risking 100% of your equity rather than say 4 percent enhances compounding electricity
    That doesn't make sense to me. With martingale, you are only ever risking more equity to recover losses and return to breakeven; while you are winning, and the account is growing bigger, you are merely betting the starting stake. Moreover, the starting stake needs to be lower than using a non-martingale if you want the account to endure a large number of doubles (and much more so, if you are withdrawing money), therefore the expansion is slower, and exponentially so due to the compounding (for example, 0.1% will probably compound greater than 10x slower than 1 percent).

  4. #14
    Quote Originally Posted by ;
    quote That doesn't make sense to me. With martingale, you're just ever risking more equity to recoup losses and return to breakeven; while you're winning, and the account is growing bigger, you're merely betting the beginning bet. Moreover, the beginning stake has to be lower than with a non-martingale if you would like the account to endure a high number of doubles (and much more so, if you're withdrawing cash), therefore the growth is slower, and exponentially so due to the compounding (for instance, 0.1% will probably compound more than 10x slower...
    who stated 0.1% ? My original milligr: taking no more than 8 consecutive losses, RR of 1:4, multiplier of 1.34. . Starting risk 2% IF I recall well. . It was 6-7 decades back. . It worked like a charm

    and that I never discussed getting rich fast, but it may take less time, why not ? Possibly with a good dose of luck ? Whatever the case the point is that it lets you start small. !

  5. #15
    Too many egies we the traders consistently use in order to our trading comprehension, but I have never discovered is a fantastic trader who constantly like use martingale egy. Actually this trading egy constantly contains huge risk but not ensure the better outcome. So traders lost interest.

  6. #16
    1 Attachment(s) The reason why I dislike Martingale systems is because they will fail eventually. And if they do, you lose your capital. It's just a matter of time before the fat tail comes.
    On a more personal level, I think a lot of people prefer to exchange this way, because they do not like to shed. It hurts too much and they want to be right. A lot of brainpower has become Martingale methods - and they still come short when the fat tail comes or if you're in a bad market condition for the egies.

    If you withdraw from the account, aren't you just cutting risk and profits?

    It's possible to exchange for years without getting struck by your cash management, but if it does, you'll be paying the price.

    Your equity curve will look like that eventually:

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