Martingale?

Only in the mind of a fool. :eek: Martingale is one of those "TRICKS" that works once in awhile. There is no trader on the planet that consistently picks the top/bottom, even the best of us will be slap-happy to average booking 50% of the days average range on a consistent basis.

Any trick works once in a blue moon. The goal of a good trader is to at least KEEP 1/3 of the days winnings after the losses and commish are subtracted. Example: say your total wins were 6k, even giving back 4k+comm, you walk away with a smile on your face when closing down the trading box at 1615.. some things in life seem easy, such as picking tops/bottoms. getting laid was a snap for some of us through the years, for others it was not as easy......... Fat chicks will attest to that. https://www.youtube.com/watch?v=W6qvJp4zPlY

 

Martingale is dangerous and addictive because it can get you out of a bad trader as a winner or recover your losses quite frequently; at the cost of blowing up or gathering a very big loss.

Food for thought, if Martingale is so inefficient, why do casinos have limits on most tables to prevent you from "Martingalin" past 6-7 ?

 

the cost of blowing up is limited to your stop,that's a casino using a stop

 

Last time i really doubled up was back in 1994. I was just starting trading on my own account prior to going to university.
Was shorting the stock markets going long on index puts. Market kept on rising. I kept on buying puts. i was close to being wiped out. Finally, I put the remaining amount into more puts. The next day, Greenspan raised interest rates in a shock move. Markets fell apart. I cashed in and had a good time at college

 

Dangerous? Last time i checked trading by itself is dangerous.. Martingale isn't for weak people and people that don't know how to use it.. And only the reason why casinos prevent martingale is because they want you to lose money not win back your money..

 

Brilliant response, which brings us exactly to my point.

Trick is a version of Martingale with a stop.

 

Statistically, if you always buy a stock and use $1,000 to start and double it every time you lose and you start with a $250k account, you will blow up after 128 trades.

 

Actually, High Frequency Trading was "invented" because Martingale doesn´t philosophically work....

 

I am not suggesting you are wrong but I am curious as to how that is calculated.

 

You can as well be saying the same about almost any thing under the Moon.