Page 1 of 4 123 ... LastLast
Results 1 to 10 of 34
  1. #1
    Rookie Member

    Why do you guys hate martingale so much? !!!

    Hi, I have been trading for a short while, i currently made around 600 trades.
    I never lost more then 3 times in a row, and even that is very rear.
    I usually trade between 15 min to 1 hour never less and 50 euro per trade.
    My strategy is hardcore analysing and trade with Bollinger bands.
    When i loose a trade i apply martingale and never failed in my account i always keep money for 6 martingales but as i said never applied more then 3.

    So as the title why do many of you hate martingale ?


    (sorry for my english not my native language)

  2. #2
    Active Member
    Hmm.. personally I dont hate martingale, and I think it can be beneficial if used properly but you really only want to use it once.

    From what I am seeing from the experienced traders here, is that they say in may threads to keep your risk very low. they recommend 2% per trade or less, so obviously going martingale is a break away from that.

    I don't think martingale is bad if used properly, but maybe it is more dangerous for those who are new or who succumb to emotions.

    I have used martingale and it did not work, and all it did was make me feel even more pressure and feel more out of control. It's really up to you. Sorry I'm new anyway just sharing my experience.

  3. #3
    Specialist Member marc's Avatar
    I don't hate Martingale ...

    But I had days where I lost more than 3 times a row ... and the sums can get high very quickly then ... and unless you are a robot or a very seasoned trader, emotions may come into play, if you risk 100% of your account at some point ...

    Not sure, how long you trade and about your experience ... but I had the same thoughts as you at some point ... but after a "personal black Friday" I have changed my mind completely about Martingale ...

    And meanwhile my personal view on that is: If I need Martingale to trade profitable, my approach on analysis is wrong!

    But I wish you all the best and luck!

  4. #4
    Legendry Member willyw's Avatar
    I have been around trading for more than 2 decades and have been trading as a profession, too. I have never use martingale before. I do not object to martingale but personally I do not advise doing so. What is the difference of keeping your risk low and apply martingale at the same time?

  5. #5
    Master Member SeasaltMcFish's Avatar
    No reason to hate Martingale. It's just a kind of money management.

    The only things are: it's a heavy tilt danger kind of management (you easily can blow your account) and it's not as logical as it seems.
    It's also not an optimal way of using your bankroll. I'll try to explain:

    If you use Martingale, you'll either start with a very small part of your bankroll, say 0,1%, or you start with, say, 1%.

    If you start with 0,1% of your bankroll, you may be too conservative, making only very small profits of 0,1% (you only win 1 unit, no matter what level) by risking sometimes a large amount of money (32 units in 6th level = 3,2% of your bankroll and more than a normal 2% money management).

    If you start with a 1%, you'll risk a third of your bankroll in level 6, to only win 1%!

    If your system is profitable, it will bring you more money with a flat % of your bankroll than with a Martingale. If your system doesn't make profit with a flat % of your bankroll, your system is not good and you shouldn't trade it at all.

  6. #6
    Veteran Member Optionguy's Avatar
    If a strong downtrend or uptrend starts and the market never looks back for a few months and you are on the right side of the market I think you are going to blow up your account with Martingale system. It might be ok in a range, but it definitely does not work in a trend, particularly going against the prevailing trend.

  7. #7
    Veteran Member hchandra's Avatar
    Easily it will be blown away by trending market,
    the benefit just shadowed by its weakness.

  8. #8
    Veteran Member Optionguy's Avatar
    Even if you trade currencies and do that let's say in aud/jpy in a downtrend and make interest on your positions you will probably be wiped out. Tests have been done on that already.

  9. #9
    Legendry Member willyw's Avatar
    Quote Originally Posted by Optionguy View Post
    Even if you trade currencies and do that let's say in aud/jpy in a downtrend and make interest on your positions you will probably be wiped out. Tests have been done on that already.
    Totally agreed

  10. #10
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    Quote Originally Posted by MaxMalta View Post
    Hi, I have been trading for a short while, i currently made around 600 trades.
    I never lost more then 3 times in a row, and even that is very rear.
    I usually trade between 15 min to 1 hour never less and 50 euro per trade.
    My strategy is hardcore analysing and trade with Bollinger bands.
    When i loose a trade i apply martingale and never failed in my account i always keep money for 6 martingales but as i said never applied more then 3.

    So as the title why do many of you hate martingale ?

    (sorry for my english not my native language)
    Most of us are against (not hate) martingale due to several reasons. In your case, you said that you always keep money for 6 martingales and never lost more than 3 in a row in 600 trades. That is a pretty good average so far. I have seen traders surviving for longer than this using martingale. But the end of martingale is usually a blown account. With other strategies you can control ur losses but with martingale, you can't. Martingale users hope for a win in every next trade after a loosing trade. What if they do not win?
    Even if you have very good strategy, you are relying more on gamble than logic.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
3