Algorithmic trading using the Martingale strategy

Many sources call Martingale a direct route to the loss of the deposit. But it is not so bad if its idea is applied carefully, wisely, and without fanaticism. Dozens of Expert Advisors, the algorithm of which is based on Martingale, are an example.

Principles of Martingale application in Expert Advisors:

• The volume of the position increases not by 2 times, but smoothly. For example, using the ratio of 1.1 and its gradual increase (1.2; 1.3...).
  
• In contrast to the classical Martingale, the Expert Advisor takes into account the data of technical indicators and other tools, which increase the probability of a correct decision.
  
• In Forex, there are no levels contributing to the normal probability distribution, which can increase the probability of success.
  
• Money is withdrawn with a constant frequency.

In the settings of robots, it is often highlighted in a separate block in which the trader specifies the coefficient by which the position volume increases in case of loss, the terms of its activation, etc. An example of such a well-known Expert Advisor is Ilan in any of its versions.

When Martingale is applied for a long time, the result is always the same - a loss. Theoretically, winning is possible only with an infinite amount of money, which is impossible. That is why Martingale advisors sooner or later always "lose" the deposit. The secret of their success is that they quickly overclock the deposit, and the trader's task is to stop in time and withdraw money.

Rules for working with Expert Advisors on Martingale:

1. Constantly monitor the trades you open. These types of advisors require constant monitoring - sometimes it is better to close transactions manually, without waiting for the triggering of a stop loss or stop out.
2. Run the Expert Advisor through the tester. You should understand what the mathematical expectation is, how many losing trades in a row the robot makes on average, at what point it is "lost", etc.
3. Be careful when the Expert Advisor gets "carried away" with opening trades by trend. It may do so by increasing the position with Martingale. And the "departing train" principle can work here: a trade with maximum volume will be opened with a delay when the trend reverses into a loss.
4. Experiment on cent accounts. On them, real market quotes are available online.
5. Use maximum leverage. To reduce the broker's margin. This will increase the maximum series of trades.
6. Withdraw your profits periodically. The primary goal is to fully recoup the deposit, to reach the breakeven level. After that, you may increase the risks.
7. Use a VPS server. In case of a connection failure, you will not be able to close transactions manually.

Martingale Expert Advisors are high-risk tools, but the risk is compensated by the possible acceleration of the deposit. Whether it's worth it is up to you to decide.

Also, if you want to use all available trading tools to increase your capital as soon as possible - follow this link below, or contact us via live chat. Our experts will help you to choose the best strategy for success.