Hello everyone,
I've discussed Martingaling in the past and come to the conlusion that it isn't worth it since you can only risk so little on each trade. The account would grow too slowly for it to be worth it. I'm still thinking about other ways to reduce our chances of losing or minimizing losses.
My newest thought is doubling our TP. The idea came to me while discussing the weekly breakout strategy in the thread started by Tkimble. The potential profits for each week are extremely high. You could easily make over 200-300 a week if the week is strongly trending. What if we didn't care to take that many though?
I'm looking at the weekly breakouts to just make so many pips a week. Right now I'm looking for consistency and not volatility in my account. The idea is to have the breakout on the weekly candle. In the thread the straddle is 50 pips to either side. We can assume that nearly every weekly candle will eventually trend up or down considerably away from 50 pips considering the length of the candles on a weekly chart.
Anyways, I would be happy with 50 pips a week. This is not asking for much from a weekly candle. So set the straddle at 50 pips to either side. Have a TP of 50 and SL of 50. SL is not trailing, stepped, or anything. What happens if the TP is hit on the first trade? Be happy. Take the pips and have a nice week.
What if the SL is hit? We still want to make our 50 pips. If we believe there is a weekly range, just as there is a daily range, then if our first trade gets stopped out then momentum has changed and there is still a lot of movement left in the week. Thus, on the 2nd trade we increase our TP to 100, but keep the SL at 50.
If we win this trade then we profit 50 for the week and be happy. Considering the pips that are possible trading tkimble's original strategy, asking for 100 pips on the 2nd trade isn't asking for much from a weekly candle either. Therefore our chances are still good of banking 50 pips on the week. If the 2nd trade is stopped out then you can continue with 100 TP to break even, reduce to 50 TP to increase your chances to win some pips back, call it quits for the week, etc..
What does everyone think about that idea? You're not necessarily martingaling since you're not putting any more of your equity into the 2nd trade. You're not increasing the SL since 50 pips should be enough to allow the trade to move since it's not trailing, stepped, etc. You could maybe move to B/E on the 2nd trade once you're 50-70 pips positive.
This strategy wasn't possible in the daily range strategy since having a straddle large enough to make the trade important and a SL large enough to not whipsaw us really ate into a lot of the daily range. It would be asking a lot to have a trigger hit again and also double the TP. On the weekly candle I don't think this is asking much though.
Anyone else think this is a good strategy? Anyone want to try programming an EA to backtest? Thoughts? Opinions? Thanks. Matt
I've discussed Martingaling in the past and come to the conlusion that it isn't worth it since you can only risk so little on each trade. The account would grow too slowly for it to be worth it. I'm still thinking about other ways to reduce our chances of losing or minimizing losses.
My newest thought is doubling our TP. The idea came to me while discussing the weekly breakout strategy in the thread started by Tkimble. The potential profits for each week are extremely high. You could easily make over 200-300 a week if the week is strongly trending. What if we didn't care to take that many though?
I'm looking at the weekly breakouts to just make so many pips a week. Right now I'm looking for consistency and not volatility in my account. The idea is to have the breakout on the weekly candle. In the thread the straddle is 50 pips to either side. We can assume that nearly every weekly candle will eventually trend up or down considerably away from 50 pips considering the length of the candles on a weekly chart.
Anyways, I would be happy with 50 pips a week. This is not asking for much from a weekly candle. So set the straddle at 50 pips to either side. Have a TP of 50 and SL of 50. SL is not trailing, stepped, or anything. What happens if the TP is hit on the first trade? Be happy. Take the pips and have a nice week.
What if the SL is hit? We still want to make our 50 pips. If we believe there is a weekly range, just as there is a daily range, then if our first trade gets stopped out then momentum has changed and there is still a lot of movement left in the week. Thus, on the 2nd trade we increase our TP to 100, but keep the SL at 50.
If we win this trade then we profit 50 for the week and be happy. Considering the pips that are possible trading tkimble's original strategy, asking for 100 pips on the 2nd trade isn't asking for much from a weekly candle either. Therefore our chances are still good of banking 50 pips on the week. If the 2nd trade is stopped out then you can continue with 100 TP to break even, reduce to 50 TP to increase your chances to win some pips back, call it quits for the week, etc..
What does everyone think about that idea? You're not necessarily martingaling since you're not putting any more of your equity into the 2nd trade. You're not increasing the SL since 50 pips should be enough to allow the trade to move since it's not trailing, stepped, etc. You could maybe move to B/E on the 2nd trade once you're 50-70 pips positive.
This strategy wasn't possible in the daily range strategy since having a straddle large enough to make the trade important and a SL large enough to not whipsaw us really ate into a lot of the daily range. It would be asking a lot to have a trigger hit again and also double the TP. On the weekly candle I don't think this is asking much though.
Anyone else think this is a good strategy? Anyone want to try programming an EA to backtest? Thoughts? Opinions? Thanks. Matt