INitial Martingale remains running and we're continuing to start BUY orders.
At what degree will we be if we start opening SELL order.
INitial Martingale remains running and we're continuing to start BUY orders.
At what degree will we be if we start opening SELL order.
Price drops we've 5 buy orders 50, 01 and -50$ we started market lot 0, 15, the price began to rise again what would we do ?
we must shut both 5 buy orders (0.01) and one market order (0.15) when both figures equivalent.
- $50 $50 or something like that
In easy terms.
When our initial order is BUY 0.01 and fashion goes against us downtrend- martingale shouts in.
And now we have multiple levels of martingale opened.
While Martingale is running with launching BUY orders. After approximately -$50, we will need to start another new order of approximately 3x (full of initial 5 buy orders open -0.01*5 = 0.05) now open market order of 0.15 since the it's on downtrend. When the pips or amount equals to the reduction on first 5 buy orders- shut both buy sell (0.01x5 BUY orders) and (0.15 sell order hedge order).
Whilst Hedge begins with SELL order, we carry on with BUY orders normal martingale. We don't stop that. It could be so or on level 4.
He appears to use Google interpret from English to Russian to comprehend what was written.
Suggestion he's making is: (am copying and pasting the material).
In the image above, I have circled the largest difficulty for us now in the downtrend. The transactions
which are furthest away from the current market price. All these are causing the largest problem
since they're so many pips away from the market and most hard to regain. These transactions are
those we have to target.
You might believe that the latest martingale transactions are the largest problem due to their size.
But they are far nearer to the current market price so more frequently than not, the tiny transactions
which were put first are actually in more human DD and more difficult to regain. I have seen
this innumerable times over the past 2 years of playing around with martingales.
So the notion is that if the EA activates recovery mode, for instance, $-100, the EA begins to hedge
and first goals the initial five trades. Hence that the EA opens a market trade which is 3x the amount of the initial 5
trades. So if the initial five trades total 0.05, then the first hedge trade is going to be 0.15. So from the above mentioned
chart, we'll have a 0.15 SELL trade open when the recovery mode is activated.
HOWEVER, this is the most important part, the EA MUST CONTINUE opening BUY transactions as ordinary in
that the downtrend. Otherwise we'll have a big gap of no transactions and maintain a large reduction waiting for
market to turn. No matter what happens, the market will eventually turn so we will need to have transactions
near this turn.
The question now appears what happens when the market reverses as soon as the market is set? The
response to this is the TP of their normal martingale transactions takes into account the hedge trade also.
So this implies the TP is going to be modified when the hedge trade is set.
So whether the market continues to proceed downor reverse, we're in a 'win win' situation. It's the
best of a lousy situation. Targeting the initial 5 trades just, means we do not need to havea large margin
This means if you're running into a particular quantity of drawdown you should cut the lousy order(s).
renko
it's extremely tricky to interpret a PDF file, I do not know what the address is all about.
Something you may wish to understand and think about:
that the Lotto model along with the insurance policy model,
combine both and come up with a Money Flow model
and diversify your trading and also to make decent use of your OPM.