I am going to keep it simple and to the stage.
Trading is SIMPLE....OVER THINKING is HARD!
To use martingale and make it work for you. . .there is just 3 factors you want to consider....
1.) Account Funds!
2.) Maximum Draw Down you are willing to let your account visit.
3.) Possible entries into a transaction that your will system give in a specific period.
Utilizing martingale is not mad nor can it be impossible to produce a profit. You don't need billions and millions of dollars to make it function.
When utilizing martingale using a system. . .you MUST understand how many possible positions you might have in that time frame.
Once you know that the rest is straightforward MATH! (ADD,SUBTRACT, MULTIPLY,DIVIDE)
1.) Account Funds = 10,000
2.) Max Draw Down = 16 percent
3.) Possible Entries = 12 trades over the H1
When finding your Trading Capital you need to take your whole account balance and divide it from your Max RISK...
$10,000 / .16 = 1,600
So our Trading Capital daily will be $1,600.
Now that we understand our max RISK for its martingale setup we understand that we will make at least a Xpercent profit on the Trading Capital for the day.
1, 2, 4, 8, 16....You double up your risk percentage every transaction until that one trade strikes your TP (1:1 )....Which makes your cash (or even more) and provides the percent daily you desired!
The point of this thread is to understand how to use martingale SMARTLY! And also to use Money Management while doing so....
As long as you understand how many changes you could have from the trading platform you are using. . .which is SUPER SIMPLE TO KNOW. . .and if you do not yet understand. . .Your need to keep that day job and not serious about trading!
For one that cannot think about the BIG PICTURE....there are 5 trading days in 1 week. . .and roughly 20 per month....So thats 20 percent per month or 240% per YEAR....ROI! . . .Of course if you compound Daily,Weekly or Monthy instead of Yearly. . .you can make more.... K.I.S.S.....Keep It Simple Stupid!