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#1 23-05-2011 14:43:25

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2437
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AWESOME: Double Martingale forex trading strategy

Double Martingale forex trading strategy

   
Here is a double martingale strategy I came across on broker-forex.fr. It is a variation of the Sure-Fire forex Hedging strategy.

For example, and in reference to the below picture, you would purchase 1 lot (indicated with B1) with the idea that it will rise. But you will also sell 1 lot (at S1, which is the same price as your buy price) at the same time, in case the price goes down. Then follow the diagram. When a martingale stops, the other one takes over. This strategy can earn pips during periods where price is ranging. As your winning transactions only require an additional lot to be put into play, it doesn't really make much of a difference in relation to the other martingale. There is always a risk for the first martingale during ranging periods (flat consolidation periods), but this risk is mitigated by the pips you are earning from the second martingale!

http://www.forex-central.net/img/strategies/double-hedging.jpg


Each arrow = a winning trade!



Should be tested using multiple configurations. If someone can program an EA, let us know, this strategy looks awesome! The only downside is that you need to manage 6 positions at once (your initial 2 positions + 2 buy stop positions + 2 sell stop positions (the latter 4 positions are so that when your take profit and stop loss levels are hit your next orders are triggered...)


"Anything worth having is worth going for - all the way." - J.R. Ewing

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#2 22-06-2011 08:45:43

manjit ritwal
Member
Registered: 22-06-2011
Posts: 1

Re: AWESOME: Double Martingale forex trading strategy

NICE ONE SIR , I LIKED IT

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#3 28-07-2011 10:56:11

cajuncailloux
Member
Registered: 28-07-2011
Posts: 1

Re: AWESOME: Double Martingale forex trading strategy

Hello, and thank you to propose your hedging strategies, very definitly. However, I have a question:



The second basis or price reached the 1.4280, I have the impression that there is a small error in the limittes orders, cut the martingale while he as not take profit. for me, I would have placed B12 S1, then after, S24 b1 to take profit in sell, volume 24, at price 0.4260 ?

           Or i have not understood? Thank you

Last edited by cajuncailloux (28-07-2011 11:03:10)

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#4 28-07-2011 16:14:37

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2437
Website

Re: AWESOME: Double Martingale forex trading strategy

cajuncailloux wrote:

Hello, and thank you to propose your hedging strategies, very definitly. However, I have a question:



The second basis or price reached the 1.4280, I have the impression that there is a small error in the limittes orders, cut the martingale while he as not take profit. for me, I would have placed B12 S1, then after, S24 b1 to take profit in sell, volume 24, at price 0.4260 ?

           Or i have not understood? Thank you

Hi Cajunrock. I just checked the graphic, after staring at it for 5 minutes I concluded...you're right! After the blue S6 order hits the stop a B12 order is placed at 1.4280, followed by a S24 order at 1.4270, with the blue order becoming profitable when the price hits 1.4260.

Thanks for pointing this out :)

EDIT: I have now fixed the above graphic, it is now 100% correct!


"Anything worth having is worth going for - all the way." - J.R. Ewing

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#5 16-08-2011 18:10:15

only1looser
Member
Registered: 16-08-2011
Posts: 5

Re: AWESOME: Double Martingale forex trading strategy

well john....

As you said at the top of the post  """It is a variant of the Sure-Fire forex Hedging strategy""..
please be honest and tell me which one would you choose for real trading system???  Hedging or Double Martingale ???
You know i have been working with hundreds of trading system but i found Hedging profitable, risk free and profitable and also tension free strategy. But your word Variant confused me enough to choose.

you are doing great john.

thanks
kader


"He is rich or poor according to what he is, not according to what he has."

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#6 21-08-2011 15:48:57

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2437
Website

Re: AWESOME: Double Martingale forex trading strategy

Hey, sorry I missed your post (better late than never!).

In theory, I would prefer this new double martingale strategy as you're always picking up pips no matter which way the market goes. In practice, though, I don't use it as you have to constantly juggle with 6 orders at a time (1 buy + 1 SL + 1 TP, 1 sell + 1 SL + 1 TP). If you end up getting into a highly volatile situation (such as during a news release) it could be quite difficult to keep up with all of the orders you need to place. For now, I stick to the second hedging/martingale strategy I describe here.

Also, I probably should have used the word "variation" instead of "variant" in my post! (that's what happens when you translate stuff from French without reading it over!)


"Anything worth having is worth going for - all the way." - J.R. Ewing

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