As long as your not swinging for the fences on your opening trade and expecting to become a millionaire overnight then martingale is highly recommended. Mathematically it swings the odds in your favor as long as it’s used correctly. Martingale gets a bad rap because if it’s not managed correctly it will blow your entire account and it has done for countless people. Another great video Ryan. Love the work brother

@ResponsibleForexTrading

Жыл бұрын

Thanks! Slow and steady is key 💯

@mowrrld8974

8 ай бұрын

Icl I recently bought an ea that uses martingale and after blowing 2 5k accounts is when I have heard it being called martingale 😂😂😂

Wow, thank you Ryan! Perfect and understanding. Good luck and take care 😉👍

I totally agree its a slept on risk method. I have implemented similar logic into some algos I'm currently live testing. Really powerful method if you're underlying strategy has decent entries. I found using much smaller average profit targets helps long term sustainability (my 5 year tests). Thanks for a clear and honest explanation to those just starting!

Hi Ryan, thanks for your very helpful content. Is there any advice or strategy for entering the trade using this approach? Thank you!

works well start with small lots and combine martingale with hedge zone strategy and enjoy naked chart success

@JoshuaOluwaseyiEmmanuel-tc1co

6 ай бұрын

Please can you explain better

@zaro1999

Ай бұрын

the fact that if u r not concentrate in quality trade with small it will big lots

I was searching for something that confirmed ideas I had about using martingale more conservatively and over longer time frames. I’m glad I found this video. Excellent

Great explanation

yes

Good

What do you think about martingale grid trading? Do you think it can work or do you think it's too risky to use in REAL trading?

@davidBi94

Жыл бұрын

Obviously it is super risky. I agree it will work most of the time (maybe 80%) and you will have small gains a lot of time for a long period but it requires only a bad move to blow your account. Also you forgot to mention the fees. Depending of the asset you are trading the daily charge has an impact on gains. The balance is not in favor of this strategy.

@ResponsibleForexTrading

Жыл бұрын

@@davidBi94 Martingale within a strategy can make it more risky but it also can make it less risky based on how it's used. The "bad moves" can be estimated by backtesting. For example, The Ranger strategy has only seen one -30% loss in its 13 year backtest. We don't need it to not have a loss every 13 years in order to be profitable. The Ranger EA can still be profitable if it has one -30% loss every 1.5 years. So you see... The strategy can still be profitable even if we have more losses than estimated. This is how I gauge my risk profile within my strategies. I over-index to give my strategies a better chance at profiting over the long-term.

i want that ea. where ca i get it?

I agree totally. Comments that think they know how to use martingale and say its too risky are defining this strategy as one thing only. I doubt they have spent sufficient time experimenting to understand HOW to use it. For example what if martingale is used on every second trade in a progression? Every third ? Etc etc. To me this falls into the same "great" advice as always use tight stops or never use hedge trades. No wonder 95% of traders lose money.

@ResponsibleForexTrading

Жыл бұрын

💯 Martingale opens up a crazy amount of risk management possibilities. Exploring it (thoroughly) it is a pretty massive key to finding consistency in trading for sure.

I was on your side for a long time… turns out single entries, and therefor only 65% profitable, can be far more profitable.

@ResponsibleForexTrading

Жыл бұрын

So you think single entries are more profitable? I continue to try to build out (single order) trade systems using no martingale and martingale MM. I've now built close to 300 trading systems/algo's. I have had success building (single order) EAs and systems but when 10+ years backtesting is considered, they never hold up as well. Yes, they can be profitable but I've seen far less profitable variables. Single order trading systems are typically too crewed or inflexible because of using a hard SL. It doesn't matter if it's hard or flexible single order SL as well. In my experience and backtesting, I've found Grid trading allows more flex within your SL (using balance, equity or percent) giving more potential for long-term profit.

Ryan it appears you use specific EAs on specific pairs.. is this correct. I've been trying to use my EAs on pretty well any pair with mixed results. Would you recommend I try and tailor an EA to a particular pair based on past behavior of that pair?

@ResponsibleForexTrading

Жыл бұрын

💯 you should. A trader that says a trading pair doesn't have a "personality", doesn't know enough about how the markets work in my opinion. "Behavior" is a key market/price element most ignore.

Great video, great explanation. I do use it myself and in order to be profitable discipline is the key and the willingness to occasionally take a loss in order to sleep well. It is by far more of a downer to not have made a profit than take a loss once in a while. I do trade 15 pairs and the work involved with finding the right settings, the backtests and the money management is a full time job for a good two month. I accept longer trends and accumulating positions against the trend without pullback on the 5M chart. The problem which arises is usually the swap costs if a trade with 8 or 10 positions goes over a week or more. Which can start really eating into the profit of the trade. You actually work for the broker. Especially if you brake the swap down to the annual interest rate . You end up in the area of 50%.

@ResponsibleForexTrading

Ай бұрын

Yes, swaps can add up. This is why most of my 7 strategies close trades within 3 days. It’s rare, but the longest a strategy can take to close a sequence is about 30 days. The lower your risk, the better you’ll sleep at night.

I'm using a Martingale bot, trading with 0.01 lots max to 0.1 lots to protect my account drawdown. If your balance is big enough it will likely "never" blow your account.

@ResponsibleForexTrading

7 күн бұрын

I agree. If your risk is low enough and your strategy is decent, in most cases, you can do very well over the long-term. I've turned $20k into $65k over the past 3-4 years across my accounts. It's not crazy big numbers but it's good enough for me!

@lars5727

6 күн бұрын

@@ResponsibleForexTrading Thats great!

Hi...i have a question whats your take on the zone recovery trading strategy compared to grid trading strategy..... which one is more effective in the long run.....Cheers to 2023🎉

@ResponsibleForexTrading

Жыл бұрын

I think grid trading is better than "zone recovery" because it's more flexible. Zone recovery needs a specific lot size and pip amount to be affective. The TP level is always changing within a grid based on level. Also, in grid trading we don't need to predict where price is going as much because of the nature of averaging in to all open positions.

Martingale or Fibonacci are the best risk management tools in trading, since trading is a 50/50 game

Where do you except defeat? Your stop at 5 percent or 10 percent or more personally? Sooner or later a move of magnitude happens with little pull back.

@user-dt8ky2sn3k

Жыл бұрын

until the account is blown

@Algoo-X

Жыл бұрын

@@user-dt8ky2sn3k noooo, you should have an exit point of for example -20-30% in my opinion

The only way this works is buying into oversold into a bullish demand zone-there’s absolutely no benefit trading in no man’s land

@ResponsibleForexTrading

16 күн бұрын

There has to be a strategy in play. You can't just blindly grid/martingale your way out of random trades.

Ryan seem to be trustable , in my opinion, because I have seen too many inappropriate people and too much opportunistic business in this industry!

@ResponsibleForexTrading

3 ай бұрын

I think it’s important to show people how it all is even if it doesn’t reflect well on me or the trading industry.

@leventkadar1830

3 ай бұрын

@@ResponsibleForexTrading have you tried more complicated platforms like "sierra charts" or "ninja trader"?

Where can I get access to the Ranger EA?

@ResponsibleForexTrading

9 ай бұрын

You can check out the Ranger on the website. Link in the description

Certainly, what I can see though is that all grid systems end up in a blown account with a disaster drawdown without stoploss. With stoploss they're all unprofitable due to volatility. Let's say that there is no pullback and the trend goes in the wrong way causing a huge DD. What can be done to solve that problem?

@ResponsibleForexTrading

Жыл бұрын

Good question! It's all about backtesting your strategy. You need to find out what kind of stoploss makes sense within you grid trading strategy. For example, the Ranger's (GBPCAD) pair's worst DD since 2009, was -20%. As of now, I have my SL set at around -20% for the Ranger GBPCAD. My reasoning is... If -20% is exceeded in it's trading, it means we're in (uncharted) DD territory and it's a good idea to accept a loss. So the idea is... The Ranger RARELY sees high DD. If we see this high -20% DD every 6-12 months, we're in trouble. If we see this DD once every 2-3 years, We're VERY much profitable. Backtesting gives us an estimate how often this max -20% DD may happen. If it happened once in 13 years in backtesting, then we're likely in good hands because our strategy can still be profitable even if we had a -20% loss once every 2 years.

@lucasbrunelle

Жыл бұрын

In and out quickly based on tens of thousands of hours of back testing, plus news filters, plus the algo knowing the personality of the trading pair makes a high DD a very low probability and one that you'd recover from within a few months

@hanzzz5435

Жыл бұрын

Your playground is not far enough😂

@neighborsfromhell4069

Жыл бұрын

@@hanzzz5435 Hedging will fix that

@jcantonelli1

11 ай бұрын

I can't speak to FX, but grid trading in a spot market that you have a long-term bullish view on can be a very powerful strategy.

Actually, i would like to know about how and when you set stop loss in this strategy? i have a similar strategy but my weakness is stop loss. Can you share?

@etienneislai1794

3 ай бұрын

Try getting about 10% of your trading capital into a forex account and start trading it with this system until you either blow it or double it. Do this over and over again. This way you won't need a SL. The high win rate of this system until you go into a loosing streak is what makes you double the account more times than blowing it

@AbdulKader-kz4nj

3 ай бұрын

Thanks for the idea @@etienneislai1794

What is "ranger"? Lol any videos that go into how you backtest non manually?

@ResponsibleForexTrading

2 ай бұрын

I don't do any manual backtesting. It's all done through the auto strategy tester in MT5

How to apply martingale to the futures market?

@bruceconnor4389

16 күн бұрын

I’ve back tested for the last week on EURUSD-the only way it’s profitable is by using the strategy at key demand or supply levels and ideally when the rsi is at or above 60 and at or below 30.my performance has been insane-hope this helps

It may seem right and fun at first until you are hunted. Martingale is a very bad risk management no matter how you twist it.

@ResponsibleForexTrading

Жыл бұрын

If martingale is so "bad", why don't we have more profitable traders not using it? I know VERY few (flat risk) traders managing a profit (beyond 6 months). Fact... It's easier to profit 1 pip rather than 2. Because of this (fact), martingale can be the mathematical factor that bridges the gap between what's (easy) based on (pip distance).

@lucasbrunelle

Жыл бұрын

Semi-Martingale used and it reduces the risk greatly by averaging into a profit much quicker for a consistent equity stop loss

Martingale = glorified DCA.