How to do a practical Martin strategy with limited funds?

It's not good to pretend to be Xiaobai casually. Can Xiaobai know Martin's strategy? Can Xiaobai know that Martin's strategy is essentially that the more funds the better? Be more professional next time.

Martin's strategy, which is said to have originated from French casinos in the 18th century, has become one of the most enduring trading strategies in the past century after being introduced into the field of financial speculation.

In the background of casino applications, this strategy is actually very simple. For example, in a guessing game, only one side (big or small) is firmly pressed for each bet. The bet amount is doubled, as long as you win once, you can win back all the previous books that lost money and you can also win more money for the first bet.

In theory, if your principal is large enough, you can make a steady profit without losing money.

Transplanting this strategy to the financial speculative market of guessing ups and downs refers to starting a transaction with a certain fixed number of hands. After each stop loss, the next entry will double the number of trading hands. After a profit, all previous losses can be wiped out Earn it back, and return to the original lot size of a certain unit next time, and continue to operate.

It can be seen that the application of the martingale trading strategy in the financial speculative market must not only have sufficient principal, but also require the overall market to rise and fall, that is, a shock market rather than a unilateral trend.

The biggest temptation of the martingale trading strategy is that you can win back all the previous losses as long as you win once, which undoubtedly has great magic for traders. Moreover, shocks are the norm for the market, and unilateral big market prices do not happen every day.

The biggest disadvantage of the martingale trading strategy is that in essence, it belongs to increasing positions against the trend. Therefore, if the market appears unilateral, it will test the system's ability to resist risks.

To a large extent, Martin's strategy sacrificed the control requirements for the retracement, adopted a dead-end approach, and allowed the rapid amplification of risks. The greater the unilateral market, the greater the level and position of the increase, and the greater the retracement, which makes Martin's strategy move towards the uncontrollable edge of liquidation.

In fact, liquidation should not be Martin's destination. Because the essence of Martin is just a pyramid-style method of increasing positions, which is a kind of fund management method, so it is just a neutral strategy.

As for the effective and feasible method? To be honest, no, it can only be said to try.

1. Control the distance between positions

The distance between increasing positions should be determined according to the tolerance for risk and retracement. Increasing the distance between positions will greatly enhance the robustness of Martin's strategy. If each layer is increased according to 60 points, then it can carry a large wave band. However, an overly robust spacing is probably not the original intention of Martin's developers. What Martin wants may be speed and strength, so that he can quickly return and harvest quickly within the fluctuation range of 150 points, so the strategy needs to balance the income and the distance between positions.

2. Control the increase in multiples

In the later stage, Martin will increase his position, and will adopt a strategy of multiplying his position according to the weakening of the market momentum. Multi-fold increase is a convenient way to quickly close the quilt order. One retracement can wipe out all floating losses. Multiple positions are also prone to risks. Therefore, it is necessary to calculate how many layers and how many times to add the position. Don't easily use multiple positions to prevent continuous quilt.

3. Change the position of Martin's position increase

Equal distance increase position is the easiest way. A better way to increase positions is to use dynamic multiples to increase positions at important resistance levels according to the strength of the resistance, so that positions and spacing can be more accurately and effectively determined. What is more worthy of in-depth study is to increase positions according to the multiples of Fibonacci at the position of Fibonacci. That is, the Fibonacci dynamic interval is used to increase the dynamic position. Of course, this method will be a lot of trouble in programming.

To use the Martin strategy, we must attach great importance to the systematic risk of Martin. In the design of the strategy, it is required to effectively control the retracement range, and design a variety of indicators to combine with the Martin strategy, so as to develop a series of Martin derivatives. Use a variety of indicators to mix and match with the Martin strategy from multiple dimensions, not just a machine-style equidistant increase.

If you have enough funds, theoretically speaking, you will win every battle and win the whole world by using the Martin strategy, cooperating with EA automated trading, and running 24 hours a day.

This is the charm of martingale strategy!

I've always thought martingale wasn't a bad strategy. If many people say it is not good, it is because it has been played badly by people who don't understand. As one of the most basic strategies in trading, Martin's strategy can deal with most market conditions. It has a simple principle, can measure points, and can be used as an ideal marketing tool strategy. It also has strong vitality in actual trading.

Martin's ending is inevitable liquidation? I don't think so. There is only one reason for a liquidation, which is a heavy position .

Martin's main problem, and a problem that will inevitably occur, is to increase positions layer by layer, resulting in a certain sense of heavy positions. However, since the Martin strategy is chosen, it is necessary to face and improve this problem.

Entry-level Martin Strategy Points Deduction

The basic principle of Martin's strategy is that in a two-sided market where you can buy up and buy down, you generally only bet on one side. Until the market pulls back, all previous losses are covered.

For example: 10,000 US dollars, open a position to do EUR/USD.

The first open position is 0.1 lot. Each interval is 15 points, and the positions are increased in equal proportions.

The spread is set at 1 pip for EUR/USD.

The level is set to 20 levels. That is, when the market is unilateral, increase the position 20 times against the trend.

Let's analyze the retracement of this simplest Martin strategy.

The picture above shows the equidistant reverse increase trading strategy often used by junior and intermediate traders , which is what we often call the reverse Martin strategy. All traders who liquidate their positions basically cannot do without the behavior of multi-layer reverse increase of positions.

We can see that when reaching the 20th floor, the number of positions is 2 lots, the reverse order is 275 points, and the floating loss is 2870 US dollars. If you want to call back the floating loss to the initial state, you need to call back 143.5 points.

Assuming that the market does not pull back at this time, and traders stop adding layers, let's measure the risk of it continuing to go against the trend.

Set the market unilateral as a complete 400-point large unilateral dead carry.

The counter-trend points on the upper 20 floors are 275 points, and the unilateral counter-trend points are 125 points. The 2 hands have already lost 2870 US dollars, plus 125*20, it is equal to 2870+2500=5370 US dollars.

The 2-hand position needs to be covered by 5370 US dollars, and it needs to wait for a callback of 260 points. This is a very tormenting thing.

The above are just the simplest Martin entry-level strategies. Evaluating this strategy, we can see that in the case of adding positions on the 20th floor, it is necessary to retrace 50% of the points against the trend. In fact, in a super strong market, it is difficult to have a 50% quick retracement, which will inevitably reduce the efficiency of the strategy.

If you want to increase the speed of quick replenishment, you need to increase the multiple of the position in the later stage of the contrarian trend, such as increasing the position according to the position ratio of 1.5 times or 2 times. But it will bring about a rapid increase in positions. If the control is not good, the floating loss will accelerate rapidly. This is why we often say that Martin's potential risk is huge.

Anti-Martingale (Anti-Martingale, AM)

The opposite of the martingale can also be used. That is, start with one unit bet, double the bet after each win, but return to one unit bet after each loss. The advantage of this strategy is that the risk is low, and the increased bet is based on the winning money, which can keep the account funds safe. The downside of this method is that the biggest bets are all on inevitable losses.

Optimizing Martin's strategy, the most worthwhile path to consider is to take Fibonacci to dynamically increase positions!

The strength of important support levels and resistance levels is different. For example, at the market reversal point, add multiple positions. In the secondary strength position, do not increase positions according to fixed regular distances and multiples.

Fibonacci is something worth spending a lifetime studying, and it plays a core role in the K-line. How to combine Fibonacci and Martin's strategies, and increase positions according to Fibonacci's rules on the increase distance and increase multiples.

The idea is as follows:

1. In order to prevent and control risks, the initial opening position can be selected to have a long space from the bottom of the band. For example, after rising 60 points from the bottom, start reverse shorting, and gradually increase the position of reverse Martin. In this way, some risk factors accumulated at the bottom can be eliminated.

2. You can choose the combination of Martin and other technical indicators, such as the sixth line of Qiankun proposed by the broker, in the position of the Fibonacci moving average, or the upper track of the Bollinger Bands, to match different dynamic Martin positions.

3. In some positions, in order to reduce the fatal damage to Martin caused by the super unilateral, strategically, you can choose to dynamically hedge some positions. Hedging positions can also be hedged forward and reverse using the Martin strategy.

4. The combination of Martin strategy and Fibonacci is a scientific research field worthy of in-depth study. If each factor is calculated in detail and well controlled, it is expected to produce a Super Martin.

But the small capital mentioned by the topic, I can’t understand how small it is. Generally speaking, no matter how Martin optimizes, he still has a minimum capital requirement. If the capital is small and can’t even meet this standard, then There are only two ways. First, give up Martin . For a trader who does not even have basic conditions, this is a wise choice. Second, change the standard account to a cent account , so that your original funds can The amount is magnified a hundred times in disguise.

Finally, no matter any strategy, there are risks. Here I would like to remind every trader that risk always comes first.

Since you asked this question, it means that you have a good understanding of Martin's strategy. Then we won't discuss about Martin's advantages and disadvantages. The main thing is to see if this strategy is feasible for us Xiaosan.

Since our funds are limited, we must consider the use of Martin within our limited capabilities. In fact, the issue of position management is involved here again, which is actually very important for any strategy.

We know that Martin's strategy is actually an investment strategy of doubling growth. In trading, if we want to use the Martin strategy, then we must ensure that our initial entry order is the smallest unit. In other words, with limited funds, we must open a position with 0.01 lots for the first time. Then add 0.02 and 0.04 to ensure that our limited funds can better implement the Martin strategy.

However, if it is in an obvious trend market, the Martin strategy of increasing positions against the trend will still die. Even with a small amount of funds, as long as the trend is long enough, it will be enough to drag it to death. Therefore, how to judge the current trend and make reasonable use of Martin is something that traders must do well.

Martin's strategy can be said to be a profitable tool in a volatile market. Then in the trending market, we can consider using the anti-Martin strategy to get more profits. As the name suggests, the anti-Martin strategy is to reverse the Martin strategy of increasing positions against the trend, so as to increase positions along the trend. The rate of increasing positions is not doubled, but halved. This realizes the pyramid method of increasing positions, and can make profits run in the trending market.

Therefore, the most important thing is to judge the trend. Strategies are dead, people are alive. The implementation of any strategy requires people to constantly adjust and optimize. To execute the Martin strategy well with limited funds, one must have a good grasp of trends and volatile market conditions. Reasonable use of Martin in the volatile market, consider the anti-Martin strategy in the trend market.

The "Martin Trading Strategy" is a trading strategy based on a gambling method popular in France in the 18th century. The main principle of this strategy is to double the bet each time the trader loses, so that when the gamer wins (every time is regarded as a 100% win/loss of the bet), not only will the previous loss be recovered, but also the previous loss will be recovered. Get the profit of the total amount of the first bet. Assuming that one has an infinite amount of money, the strategy must work because with an infinite number of bets, an outcome with a certain probability must be achieved. The problem is that no trader has an infinite amount of money, so using this strategy will eventually lead to a blowout.

In actual operation, Martin strategically manages positions, and the risk of continuously increasing positions is high. In a series of losing trades, a trader keeps doubling up on positions until the trend reverses, and his previous losses are wiped out immediately with the first profit. The purpose of this strategy is only one, which is to make up for all previous losses with the first profit. The difficulty is that blindly doubling up puts a trader's account at greater risk. If the trader has already caused retaliatory trading or impulsive emotions due to continuous losses, then the martingale strategy will only quickly cause the entire account to suffer major losses or even be out of the game.

How to use it effectively and feasible? It seems that everyone is studying this issue. The key point is that there are several points that need to be paid attention to in practical application: first, follow the general direction; The most important point is to control the position below half position.

It is very important to master the above points. Martingale strategy can be said to be a part of fund management. Reasonable use is more important. It is neither a trading strategy nor a trading mechanism. It requires traders to grasp the trend correctly enough Be confident and set a good risk-reward ratio. The martingale strategy is highly dependent on funds. When trying to apply this strategy, it is necessary to ensure that there are sufficient funds in the account and at the same time control the position.

Anyone who is familiar with Martin's principle will know that this is a trading strategy in which ideals and reality are completely polarized.

Theoretically, Martin is 100% established. "Any product will eventually go out of the unilateral market." Therefore, two-way pending orders and double positions one by one have reached the final profit.

In reality, the duration of the volatile market is unknown, the time may be long or short, the trading orders are continuously stopped, and when the account funds do not reach the unilateral market, the position has been liquidated.

1. Martin's strategy "no shortage of money"

There is a general consensus that Martin's strategy actually achieves 100% accuracy, that is, there are sufficient funds.

I don't think so.

This is a typical low-level retail investor cognition, I asked these people:

"If you have sufficient funds, you don't need to make transactions, and there is no point in doing transactions."

"If you have enough funds, don't set a stop loss, just enter the market and wait for the profit, that's it, no need for Martin, any strategy is 100% profitable"

"All stop losses are due to insufficient funds"

...

So don't talk about money. Money will not be the deciding factor in any failure.

In reality, the failure of Martin's strategy is the same as that of other failure strategies, and the trading system is incomplete.

Many traders who have been losing money in trading for many years share a particularly low-level cognition, "used doctrine"-theory and actual combat are 100% the same, and the analysis and trading system are 100% the same.

Martin strategy just informs a theoretical framework, which is strategy. For a firm offer, a specific trading system must be formulated in combination with market analysis, entry and exit point setting, and fund management. This is the tactic. One is knowledge and the other is action. Wang Yangming "unifies knowledge and action", telling future generations that knowledge and action are unified, and the two cannot be bookish or mechanically applied.

2. The Martin loophole is "no unilateral"

Now that you know the consequences of using the Martin strategy, start from the consequences to find the root cause.

Martin's consequence was that before reaching the unilateral position, the account was liquidated. There is a key word here "not yet unilateral", unilateral is the long/short trend, and it is very clear at once. Combining Martin's strategy with trend analysis, this trend is "finding the opportunity to start unilateral soon".

The loopholes in Martin’s strategy have been found for everyone. How to improve Martin’s strategy? I think everyone has their own trend strategy, and it is enough to combine the two with the real offer and deal with the details.

Martin is a strategy based on capital position management. In financial transactions and games, it is one of the most common and fundamental strategies. Increase the position after the loss, continue to increase the position after the retracement, increase the position repeatedly, wait, and then even out all the losses. However, there are many risk points in the operation that need to be well controlled.

Opening a position for the first time: It is best to choose when the market basically starts to go out, rather than the top or bottom starting position, so that you can relatively maintain a little advantage, and the number of operations in the later period will be more controllable.

Add-in distance: Whether to add positions at a distance of 30 points, or at a distance of 50 points, or according to a certain proportion of dynamic distance, directly affects the potential risk of Martin. It can be calculated according to the historical trend of specific varieties in the trend to get a reasonable value.

Increase multiple: whether to increase the position at a ratio of 1:1, or at a multiple of 1:1.5 or 1:2. It is recommended to increase the position at 1:1, which can reduce the total number of positions and the complexity of calculation.

When using the martingale strategy, the market moves in the opposite direction. The multiple increase in the position will increase the pressure later, so it is very likely that the account funds will be lost in the later stage of the loss. So it can be seen from this that what martingale theory is most afraid of is a market that never looks back. It is most suitable for maintaining the direction, but the market is relatively flat and the situation lasts for a long time. At the same time, it is also necessary to think about a critical point. If a completely reversed market is about to appear (you can refer to the big picture to find the key points in the trend), it is not recommended to follow through to the end.

Martin's strategy is nothing new. Besides, there are already so many position management strategies on the market. Why do you insist on using it? You are still a novice with limited funds. Isn't this looking for abuse?

As we all know, the Martingale strategy is one of the important stake management systems used by gamblers around the world.

It was first used on the roulette wheel in the casino. The basic principle is: if you lose money, you need to double the bet, and if you win money, you need to restore the bet to the original bet. This will allow you to make a profit in the end.

For example: You bet on a game where the home team wins, the odds are 1 to 2, you bet 100 yuan, but you lose, and then you bet on a game with 1 to 2 odds, but the bet is increased to 200 yuan , you still lost, and then you still bet on a game with odds of 1 to 2, and the bet doubled to 400 yuan. This time you won, you bet a total of 700 yuan, and you made 100 yuan, and This is exactly the profit you were hoping for on your first bet.

This method seems magical, and it seems to work in theory, but it must meet the following two prerequisites at the same time:

1. Be able to maintain enough calmness after losing a large amount of money, and at the same time must have sufficient funds to ensure that the game can continue.

Let's do a simple calculation: If you use 1 to pay 2 for betting, when you lose 5 times, you need to bet 32 ​​times your original bet, and the sixth bet is not necessarily It can make you win money, your loss is huge when this happens, and you don't necessarily have enough funds to make the seventh bet. And you can't guarantee that the seventh bet will definitely win!

2. The bookmakers loosen the upper limit of their betting bets (theoretically, there should be no upper limit), so that you may have a chance.

Most bookmakers have upper limit or payout limit on each game item, which will not be changed according to your needs. Therefore, you may not be able to make full profits due to the restrictions of the rules.

In the trading market, the theoretical basis of Martin's strategy is that the probability of a profitable transaction after a transaction loss will increase, so use this opportunity to carry out more transactions after a transaction fails.

But the reality is that this strategy is often a disaster. When you increase the position size after a trading loss, since no one guarantees that you will be profitable after a trading loss, that is to say, after a trading loss, it does not mean that subsequent transactions will have a higher probability of profit. In fact, from the general law, regardless of profit or loss, the chance of profit in the future is still 50%. In other words, no one can guarantee that you will not suffer long-term continuous trading losses, which will cause you to go bankrupt early.

Therefore, in such a situation, engaging in Martin with small funds is most of the time sacrificed on the eve of dawn. You have not yet increased your position a few times before you can't stand it and your position is blown out.

When it comes to the Martin strategy, anyone who has trading experience is familiar with it. It is a strategy that people love and hate: many people will use the Martin strategy to obtain good returns at the beginning; but as time goes by, the latter account does not appear. A sharp retracement is to leave the market with hatred!

Many people have seriously designed Martin ea, and tested it with historical data or even real data. They will find that the capital curve at the beginning is very stable, which is simply the most perfect capital curve we have been looking forward to; The capital curve on the top suddenly turned around and went down, and the position was directly liquidated.

In the end, everyone came to the unanimous conclusion that as long as you use the Martin strategy, you will eventually be unable to escape the fate of liquidation (unless your principal is large enough).

So, is there any way to change the fate of Martin's strategy of liquidation? In other words, investors with limited trading funds like the subject must not use the Martin strategy?

My personal opinion is: there must be! After all, Martin's strategy can last hundreds of years in this market, and its existence is reasonable, and there must be a way to use it.

We know that any market is nothing more than unilateral and volatile trends; we also know that trading is actually very simple when the range is volatile. In the case of fund management, go long at key support levels and stop losses at key support levels; short at key pressure levels , Break the position and stop the loss.

Speaking of this, you may suddenly realize a little bit: Isn't this very similar to Martin's strategy?

Yes! Martin's strategy is inherently the best strategy for range-bound markets!

Therefore, if, like the subject, you have limited funds but want to do the Martin strategy, then the feasible and only way is to choose varieties with range-bound market fluctuations and strictly implement the risk control of breaking positions and stopping losses!

When it comes to the Martin strategy, anyone who has trading experience is familiar with it. It is a strategy that makes people both love and hate.

Success is Xiao He, failure is Xiao He. Many people use the Martin strategy to make good profits in the account at the beginning, but then the account either has a large retracement or leaves the market with hatred. And I was in extreme losses from the very beginning.

So, can the Martin strategy be used in the market?

The answer is yes, existence is reasonable. How to use it in the market is what we should think about. Next, I will briefly talk about my use of Martin EA and data modification.

This year began to test Martin EA, the main purpose is to enlarge the position period after the trend is profitable. In the period from January to February of this year, after data testing, it was found that the loss reached 48% for two consecutive months, which was close to half. The frequency of adding positions is reduced, and the extreme position is out, etc., so as to get out of the predicament. From a loss of 48% to a total profit of 157% by the end of the National Day, the first half of the year was suffering. When it was close to being cut in half, I almost gave up on EA. The hard work paid off. After working hard on the last strategy, I got out of the predicament.

The current summary of the reasons lies in two shortcomings:

1. Floating losses and increasing positions. Under the premise of correct judgment on the general direction, this strategy is effective. As mentioned in the opening article, success and failure are also Xiao He. The unilateral market will be miserable, and you can lose everything in one go.

2. Insufficient algorithm for judging the direction of the trend is the biggest culprit. A good EA can really make people worry. The first is the success rate. On this basis, add fund management (loss increase, limit position exit, etc.) strategy), is the icing on the cake. Those who do not pay attention to this rule, in the current market where false breakthroughs are flying all over the sky, it is easy to go to the road of liquidation.

Hope to give EA lovers a direction, don't be discouraged.

How many Xiaobai have fantasized about Martin's journey to the world, but the results are often disastrous. What's the reason? And listen to me slowly.

First of all, as usual, we still have to introduce what is called the Martin strategy. The Martin strategy, the full name of the Martingale strategy, is actually a gambling strategy. In fact, this method was widely known in Europe not long after it originated in France in the eighteenth century. Theoretically, this strategy will never lose money.

For example, if you shake dice, if the result is only big or small, and the odds are 1:1, then we use Martin's method to bet only one direction, for example, only guess big. So:

1 yuan for the first time, lose 1 yuan,

2 yuan for the second time, lose 2 yuan,

The third time is 4 yuan, lose 4 yuan,

8 yuan for the fourth time, lose 8 yuan,

The fifth time is 16 yuan, lose 16 yuan,

The sixth time is 32 yuan, lose 32 yuan,

The seventh time was 64 yuan, and the profit was 64 yuan.

Then in the process of betting this time, a total of 6 losses were made, and the amount was 1+2+4+8+16+32=63 yuan. Then the seventh bet was correct and the profit was 64 yuan. Recover the losses of the first six times, and earn 1 yuan more. By analogy, if the funds are large enough, theoretically, this method can make profits without losing money. Note that the premise is that "funds are large enough", this needs to be highlighted.

Speaking of this, it is estimated that many people will imagine that Martin’s trading method is also used in the process of futures trading, such as only doing one direction, for example, only long orders, and a stop profit of 30 points:

At the beginning, 0.01 lot, take profit of 30 points, wrong for the first time, loss of 3 yuan;

The second time is 0.02 lots, the stop profit is 30 points, the second time is wrong, and the loss is 6 yuan;

The third time was 0.04 lots, and the stop profit was 30 points. The third time was correct, and the profit was 12 yuan.

Then in the process of these three transactions, the total loss is 3+6=9 yuan, the profit is 12, and the overall profit is still 3 yuan.

After such an analysis, it is estimated that many people seem to have found a way to get rich: as long as I follow the whole method, won’t I be able to make a steady profit without losing money? This is an idea that every Xiaobai has experienced, and the subject is no exception.

Yes, in theory, as long as you trade according to this method, you can make a steady profit without losing money. But, here's the theory! There is still a big gap between theory and practice. For example, in theory we can move the earth, but in fact we don’t have such a long pole; the same is true for the Martin transaction. In this way, a huge amount of money is required, and this amount of money may exceed your imagination.

How big is this funding requirement? Here's my silly calculation:

first time: 0.01;

Second time: 0.02;

Third time: 0.04;

Fourth time: 0.08;

Fifth time: 0.16;

Sixth time: 0.32;

Seventh time: 0.64;

Eighth time: 1.28;

Ninth time: 2.56;

Tenth time: 5.12;

Eleventh time: 10.24;

Twelfth: 20.48;

Thirteenth: 40.96;

Fourteenth time: 81.92;

Fifteenth time: 163.84;

Sixteenth time: 327.68;

Seventeenth time: 655.36;

Eighteenth time: 1310.72………

How is it, is it against the sky? The 8th time I broke through 1 hand, the 11th time I broke through 10 hands, the 15th time I broke through 100 hands, the 18th time I broke through 1000 hands......

Let’s try the question, including all the netizens who are reading, how many of you can break through 10 lots of transactions, and how many of you can break through hundreds or even thousands of lots of transactions? It is estimated that I have never tried the simulation disk, but it can be millions of minutes every minute!

Therefore, I would like to advise the subject owner here, if you do not have a large enough amount of funds, if you want to use pure Martin methods to trade, you should give up your mind, otherwise you will die.

Domestic EA is rampant, and it must be called Martin. But this is a strategy that has been eliminated for a long time abroad, why is it still popular here? I have been doing transactions for a long time, and I have contacted a lot of EAs. The Martin strategy is the most common, but I have never seen anyone who relies on Martin to make money.

why? Because Martin is a strategy that is destined to explode, it just depends on whether it will explode in the near future or after a while. As long as the unilateral trend of the market comes out, Martin will die, unless you have unlimited funds!

Where did Martingale's strategy come from? From the casino, if I double the investment every time, I can guarantee that the money I earn this time will make up all the previous losses, and there will be a surplus. You can go and find out how the casino deals with Martin's strategy? It's easy, set a betting limit! In the trading market, this upper limit exists naturally, and no one has unlimited money. Even with ultra-large-scale funds, using Martin in the market will not have any good results-------the upper limit of the lot is set too low, and there is no profit; the upper limit of the lot is set high, and the risk of retracement is very large.

I have seen an account of 1 million US dollars, with a floating loss of more than 670,000, which is a completely unacceptable result. The core of trading is not how much you profit, but first of all you can't lose too much. This floating loss can blow up more than 99% of accounts.

For EA, domestic development is still relatively backward. There is a lot of room for it in terms of quantification and asset management. On Wall Street, they all rely on talents with super high IQs such as Harvard and MIT, and they are still counterparts. Models built by professionals in astronomy, physics, and mathematical modeling to achieve a quantitative hedging. Just a few people in China formed a studio and started to develop EA to sell. If it was that simple, this market would have ceased to exist long ago, and all the money would have been made. After all, this is a zero-sum or negative-sum market.

Many futures, gold, HSI and other financial investment traders are unwilling to face stop losses, and choose to increase their positions when they lose money. This may be why so many people choose the Martin strategy in the end. Is this trading strategy reliable? Woolen cloth?

The martingale strategy first appeared in casinos. In fact, this method originated in France as early as the eighteenth century. It did not take long for it to become widely known in Europe, with mixed success and failure.

Forex AI Trading Strategy

Martingale (Martingale) strategy is currently widely used in foreign exchange market EA strategies. In theory, as long as the amount of funds is large enough and the investment continues to double, it will never lose money.

Martin strategy operation mode

Here, Lao He takes leveraged trading in the foreign exchange market as an example to understand how Martin's strategy is applied to trading.

Assuming that the initial position is 1 lot long, and the position is increased by 10 points:

If the judgment is right, the profit will be directly exited; if the judgment is wrong, when the floating loss reaches a certain level, the position will be doubled and the position will be doubled. If it falls by 10 points, the position will increase to 2 lots; if it falls by 20 points, the position will increase to 4 lots, and so on. , fell 60 points, and the position increased to 64 lots: 1. The market rose and rebounded, so that the average position price continued to decrease, and each time you rebounded slightly, you could exit the market, and finally offset the floating loss, and you still exited the market with a profit; 2. The market continues to fall, and you no longer have the funds to double your bets, then your account can only leave the market with a loss (liquidation);

Advantages and disadvantages of Martin's strategy

If foreign exchange investors want to use the Martin strategy without losing money, one of the important conditions cannot be ignored, the size of your initial principal. As long as the money is sufficient and the market does not appear super-large unilateral, it will always be profitable.

So here comes the question, what happens if investors in the foreign exchange market have limited funds and the market does have a super large one-sided market?

Needless to say, I believe that most investors in the foreign exchange market are very clear in the real market. If they cannot bear such a heavy lot, their positions will be liquidated, and they will not be able to continue to operate, resulting in a fiasco.

In order to avoid Martin's flaws, Lao He usually makes a signal prompt with Mag, and then manually screens and builds positions, but the profit is very good. After trying for a period of time, the monthly profit is relatively stable. Look at the capital income chart

The "invincible" Martin strategy actually has two conditions.

1. Unlimited funds. Needless to say, in order to never lose money, Martin's strategy must be backed by unlimited funds. Because the odds are completely uncertain, it is necessary to have enough funds to cover all losses before you win. And this loss can be said to be very huge, and it is even impossible for people to persist.

2. The rate of return is the same. This means that the income obtained after each win is fixed. Therefore, Martin's strategy is most suitable for use in casinos, because each opening is an independent event, and the payoff is the same. But not in the trading market. For example, in rolling dice gambling, this time has nothing to do with the last time, and the probability of winning is 50%; we assume that the rate of return after winning is also 50%, that is to say, as long as you win once, you can earn back the loss of the last time money.

Not so with trading markets. The probability of winning may reach 50% without any analysis; but the rate of return is hard to say. If I invest 100 to buy EUR/USD, unfortunately the currency falls by 100 points, and I lose all; then I immediately buy 200 more, but at this time EUR/USD needs to rise by 50 points to recover the money I lost last time. Whether we can recover 50 points is not something we can be sure of, which is the biggest difference from rolling dice.

Especially when this strategy encounters a unilateral market, the above net worth curve can explain everything. In other words, even if this strategy can help you make money before, as long as you encounter a big unilateral market, it will inevitably lead to liquidation, and the speed of liquidation will be very fast.

After working hard for half a year, I returned to the pre-liberation overnight. I don't think anyone wants this kind of experience, so it's better not to choose the Martin strategy.

      Martingale strategy is one of the most enduring trading strategies in the field of speculation. It can achieve stable wins in theory. So far, countless people are still addicted to it and study it with great concentration.

　　The essence of trading is the probability of trading. Every time an order is placed, no one dares to say that it can win 100%. When you click the mouse and place a bet on the direction of the species you are optimistic about, the risk already exists. Many people trade ten times and only make money three times. But don't underestimate the 30% winning rate. If the trading time, entry point and position are used properly, it will also be a big profit.

　　The "Martin Trading Strategy" is a trading strategy based on a gambling method popular in France in the 18th century. The main principle of this strategy is to double the bet each time the trader loses, so that when the gamer wins (every time is regarded as a 100% win/loss of the bet), not only will the previous loss be recovered, but also the previous loss will be recovered. Get the profit of the total amount of the first bet. Assuming that one has an infinite amount of money, the strategy must work because with an infinite number of bets, an outcome with a certain probability must be achieved. The problem is that no trader has an infinite amount of money, so using this strategy will eventually lead to a blowout.

　　So the question is, is there a feasible Martin strategy with limited funds?

　　Don't tell me, there really are. The following uses the most common foreign exchange transactions to illustrate.

　　First of all, foreign exchange trading varieties with relatively large fluctuations and certain trends should be established. Common trading varieties include Europe, America, US, Japan, and pound US. Take Pound US as an example:

　　The above is the trend of GBP/USD from the beginning of June 2019 to November 27, 2019. It is divided into three areas. The bottom area below is a phased bottom. Selling at this time is more risky than rewarding.

　　The penultimate area from the bottom up is the consolidation area, which can be either long or short. The uppermost area is the breakout area, and buying at this moment is the only option.

　　It can be seen that to do trading, we must first clarify the direction of the trend. If the general direction is wrong, such as selling in the second area, and the result goes directly to the first area, the more you invest, the more you will lose. Unlimited loss is very scary, and unlimited increase can only lead to continuous loss, which eventually becomes a nightmare for traders.

　　Before doing the Martin strategy, first use small-scale funds to test the direction of the market, such as the bottom of the GBP-USD market shown in the chart, test more and wait more to see if there is a possibility of a decline. If there is a double bottom or even a triple bottom at the daily level as shown in the figure, even if there is a sell order of the Martin strategy before, it should take a break. First use small-scale funds to test the direction, and after the trend direction is verified through time and space, the Martin strategy will be implemented again.

　　For example, if a trader has 10,000 US dollars, he can place an order at 200, 400, 800, or 1600. Of course, if you simply use double investment, there are dangers with a too large double investment base. For example, during a consolidation phase, traders are likely to feel nervous because of their continuous investment. We can reduce the base of the investment capital, for example, start with 100 US dollars for 10,000 US dollars, and reduce the multiple investment coefficient to less than 1.5, for example, use 1.3 multiples, start with 100 US dollars. 100, 130, 169 progressive multiples. Because the amount of capital occupied is relatively small, the risk of operation is relatively small.

　　The above is the proportion diagram of the relationship between capital investment and multiple investment. It can be seen that the use of low multiple investment will occupy very small funds, and the pressure on traders is relatively small. In order to ensure the safety of funds, it is recommended to invest with low multiples. Even if you use the Martin strategy to open a position, you cannot bet with a full position. It is best that the position can be controlled within 30% of the total capital, and the number of opening positions should not exceed 6 times.

　　The martingale strategy should be considered part of money management. It is neither a trading strategy nor a trading mechanism; the martingale strategy is especially suitable for use in trend trading, as long as the trader is correct and confident enough to grasp the trend and set a good risk-reward ratio, then trading in the entire range Among them, even if our profit is greater than the loss, the account can still make a profit; trading psychology is very important to the success of the entire transaction, traders can lower the investment multiple at an appropriate time, and then play a role in adjusting the mentality; martingale strategy The dependence on funds is high. When traders try to apply this strategy, they must ensure that there are sufficient funds in the account. At the same time, the size of each transaction should not be too large to ensure that the transaction is controllable.

　　In the Martin strategy position management method, there are also risks in increasing positions against the trend. This means that in a series of losing trades, the trader should continue to double the position until the trend reverses, so that when the first profit is made, his previous losses can be wiped out immediately. The purpose of this strategy is only one, which is to make up for all previous losses with the first profit. The difficulty is that blindly doubling up puts a trader's account at greater risk. If the trader has already caused revenge trading or impulsive emotions due to continuous losses, then the martingale strategy will only quickly sink the entire account into a major loss.

　　It can be seen from this that Martin's strategy must be based on objective market analysis. Even if there is a loss when the double investment is less than 3 times, it must be quickly closed. Choose a new direction to make a double bet. Note that each bet does not have to be doubled, use 1.1, 1.2, 1.3. ．．．It's also good to be progressive. Remember to use the trend as a guide to do a good job of the Martin strategy, not blindly carry it to death, once the trend is reversed, you must quickly leave the market; you must find a suitable Martin strategy implementation point to gain profits.

First of all, lower the profit expectation, and don't expect to use the Martin system to obtain high returns. The smaller the profit expectation, the relatively smaller the risk you face.

Second, adopt the Martin hedging strategy, that is, the long-short two-way open position strategy, to offset the occupation of funds and improve the utilization rate of funds.

The second point needs to be explained. In the past, Martin’s strategy was to increase the position at a fixed point and double the investment. For example, the position was doubled every 100 points, such as 1 2 4 8 16 32 in sequence. Now join the hedging strategy, such as opening a long position by 0.1 lot, and closing the position after the price rises when you are satisfied with the profit. If the price does not rise but falls, then place an empty order of 0.1 lot when it falls to 25 points away from the position, which is equivalent to locking in a loss of 25 points, and the price continues to fall until it reaches 50 points away from the position, and then add another 0.1 lot of empty order , add 0.1 lots of empty orders when the price drops to 75 points of the exit point, add 0.1 lots of empty orders when it falls to 100 points of the exit point, and enter the market with 0.2 lots of long orders at the same time. In this way, the overall long order is a position of 0.1+0.2=0.3 hands, while the short order is a position of 0.1+0.1+0.1+0.1=0.4 hands, which means that the first time the short order is opened, the loss of the long order is locked, and the second The third time you increase your position, you can start to make a profit. When you do both long and short positions for the fourth time, the positions are offset, and only 0.1 lots of short positions take up funds. And empty orders are generally profitable. If you don’t continue to add positions and make orders at this time, there is no problem. Just wait for the price to drop and you are satisfied with the profit of the short order, and then close all the long and short positions.

If you still insist on the original long order, the price will continue to drop to 125 points, 150 points, 175 points, and 200 points to add 0.1 lots of empty orders, and add 0.4 lots to lock at 200 points, so that The short order entered the market 0.3 lots earlier than the long order, which has already made a profit in advance, but it formed a pair lock again at 200 points, and still only occupied funds by 0.1 lot. , the overall increase in funds, so the negative impact is not great.

The price continues to fall, and the next time to increase the long position is 0.8 lots. At this time, the short order is falling to 225 points, 250 points, 275 points, and 300 points, each need to add 0.2 lots of empty orders, and at the same time at 300 points Increase the long position by 0.8 lots. In this way, the short position will start to make a profit in the middle, and the position will be locked at 300 points, which is equivalent to the profit lock. After the position is locked, only 0.1 empty positions will occupy the funds.

Continuing in turn, the next time a long order enters the market is 1.6 lots, then the price will add 0.4 lots at 325 points, 350 points, 375 points, and 400 points, and at the same time add 1.6 lots of long positions at 400 points. It is still a profit-to-lock mode. This method is not afraid of a large unilateral decline in long positions, because there are short positions to hedge against profits, and when the price reverses, close the short positions, and hold long positions to rise by about 100 points to start making profits.

Compared with the one-way Martin strategy, this hedging strategy has more advantages and a higher utilization rate of funds. The biggest advantage is that you can stop entering the market at any time after hedging, which solves the problem of using limited funds to do Martin. If you grasp the timing of closing positions well, the profit probability and profit rate will be greatly improved, and it is possible to make profits on both long and short positions.

The positions and points in this method are just examples, please make adjustments according to your own situation. The method and strategy also depend on the background of the user. If the inner quality is lacking, a good method will not have good results. Please use it according to your actual situation. Personal opinion, for reference only, thank you.

Now there are many so-called EA strategies on the market, among which the Martin strategy is often mentioned, but unfortunately, it is very unfriendly to small funds. Because Martin's profit theory is that as long as the amount of funds is large enough and you continue to invest twice, you will never lose money.

For example, assuming that the initial position is long with 1 lot, and the position is increased by 10 points: if the judgment is correct, it will directly exit the market with a profit; When it reaches 2 hands, it falls by 20 points, and the position increases to 4 hands, and so on, when it falls by 60 points, the position increases to 64 hands. if:

1. The market rises and rebounds, so the average position price continues to decrease, and you can exit the market after a slight rebound every time, and eventually offset the floating loss, and you still exit the market with a profit; 2. The market continues to fall, and you no longer have the funds to double your bets , then your account can only leave the market with a loss (liquidation).

Therefore, as a novice with limited funds, it is better not to engage in Martin, it is meaningless, the money is destined to be wasted, why bother yourself.

However, if a certain market is dominated by turbulent market conditions, then you can still do it. Because as long as there is enough money and the market does not appear super-large unilateral, it will always be profitable.

For the currency trading market, it is very different from stocks and futures. Not only is there very little so-called insider trading, but a single individual or institution cannot turn the market trend, even if a country's central bank intervenes Or manipulation, in the end, it is the country's central bank that loses the most. Every year, many central banks share their wealth, such as the daily foreign exchange market operations of the Swiss National Bank and the Bank of Japan, and it is not uncommon to see losses.

If you often watch the market, you will find that, unless it is a major international bullish or bearish, whether the market is long or short, it is not easy to turn around in a short period of time. The trend of the currency pair market is generally a slow rise Trends, declines or flat shocks. For any currency pair, you can clearly see their slow movements as long as you use a 4-hour line. In fact, they are also one of the market foundations for the existence of high leverage in currency pair trading.

In recent years, the trading of global currency pairs has shown the characteristics of reduced volatility, which has also contributed to the volatile operation of the market. This is because of changes in trading entities, the rise of electronic trading ten years ago, and the participation of a large number of individuals and institutions have increased market activity. With the current institutionalization of transactions, the proportion of individual traders is getting smaller and smaller. There are transactions, and they are also market makers, and orders do not enter the market, so most of the institutions are playing games. At the same time, with the invention of arbitrage tools such as quantitative trading, the volatility of transactions has been smoothed out to a certain extent, and the trend has become more and more stable. This is a general trend of all transactions. In addition, cooperation and information exchange between countries have been strengthened, and the ability of big data analysis to predict economic trends has improved, so the ability to intervene in the market has also increased.

Because of this, it is found that the daily trend of many currency pairs is dominated by shocks. In this case, it is understandable that Martin has become the object of discussion among speculators in the foreign exchange market.

The martingale strategy has a very high winning rate, almost making money without losing money, but it actually hides a huge risk of bankruptcy, and the profit-loss ratio is very poor (each profit is 1 unit of bet, and it may lose money quickly when it loses consecutively. all principal alone). The anti-martingale strategy looks stupid and has a low winning rate, but the risk of bankruptcy is very small and the profit-loss ratio is superior. This is beyond the expectations of ordinary people.

In the speculative market, the ideas of martingale strategy and anti martingale strategy are reflected in every speculator. For example, most people are used to increasing their positions at a loss. The more they lose, the heavier they increase their positions, and they hope to take it back. However, there are very few people who can carry this kind of list to make a large profit, because after experiencing long-term or large-scale floating losses , The willpower of ordinary people is already very weak, and the urgent desire to escape from a catastrophe will defeat most people.

Similarly, due to the weakness of human nature, fewer people adopt the anti-Martingale strategy. The strategy requires profit to increase the position, and as the profit increases, the position should be continuously increased until the target number of times.

The weakness of human nature drives most people to adopt martingale strategy trading methods in transactions, and refuse to adopt anti martingale strategy trading methods. This is one of the important reasons why most people lose money and a few people make money in the speculative market .

The martingale strategy can be simply improved.

The strength of important support levels and resistance levels is different. For example, at the market reversal point, add multiple positions. In the secondary strength position, do not increase positions according to fixed regular distances and multiples.

In order to prevent and control risks, the initial opening position can be chosen to have a long space from the bottom of the band. For example, after rising 60 points from the bottom, start reverse shorting, and gradually increase the position of reverse Martin. In this way, some risk factors accumulated at the bottom can be eliminated.

Using ea to operate is not to consider the income, but to consider when the position will be liquidated. Using ea to operate, the winner will be the one who can last.

How to do a practical Martin strategy with limited funds?

Can a practical Martin strategy be implemented with limited funds?

First of all, we have to start with what is Martin's trading strategy.

Martingale (Martingale) strategy is actually a gambling strategy. This method was actually widely known in Europe not long after it originated in France in the eighteenth century. In theory, this strategy will never lose money.

Start with one unit bet, after each loss, double the bet, and after any win, return to one unit bet the next time. The beauty and allure of the martingale method is that you double up after every loss, so that the next time you win, you can always win back all the previous losses.

Suppose we participate in a betting game, we start betting from 1 yuan (only one side can be pressed), and then increase in multiples of 2 (2x1)n, that is: 1, 2, 4, 8, 16, 32, 64 , 128, 256, 512... until the money is won, and then start all over again.

But a unit bet (you can do the math yourself) when a series of losses occurs, the bet size will increase very quickly, and you may go bankrupt before you win the bet. Therefore, the premise that Martin's trading strategy will never lose money is to have unlimited funds as the backing!

It needs unlimited funds as the backing to not lose money, which is inherently doomed by Martin's trading strategy, and it is difficult to change. From this point of view, it is impossible to do a practical Martin strategy with limited funds, because you will inevitably encounter liquidation!

Martin's theory requires unlimited funds to ensure an infinite probability of winning. When the market cycle always pulls back, even if the pullback does not reach the original level, as long as the pullback occurs, according to Martin's theory, you can make money.

But if you have limited funds, you must consider the risk situation. If you deal with it too strictly, you will hardly make money at ordinary times. If you deal with it too loosely, the situation of being unable to resist risks will greatly increase. This is a question of compromise. Look at the ratio of your own funds and expected returns.