What can you say about martingale ea

[Jameson wc]

What can you say about martingale ea? Do they work on the long run or they just blew accounts. Do you think it's wise to use such bot on a real account?

 

[Fin_Trader]

I can't say anything good about Martingale. I tried a lot of strategies and Forex robots that traded using this algorithm. As a result - lost deposits (it’s good that I checked them on a demo account). After all, this method of trading involves constant averaging against the trend, while each subsequent order is set with an increased lot, which ultimately puts a lot of pressure on the deposit and eventually it is reset to zero.

 

[CinFX]

I'm sure you know how Martingale works, so there's no need to explain it.

The odds of it working stay 50/50, and thus a gamble. One can't trade with 50/50 odds, you need a higher profit/loss ratio to be successful. Eventually, you'll run out of trading capital and it'll blow your account.

I've seen Martingale work in complex EA's whereby Martingale is just used during a loss to recover some capital, but then Martingale relies on an existing Strategy that mostly stays profitable. For example, after closing in profit Martingale would be reset back to a 1:1 ratio. If used like this and if one sets a hard limit on the maximum lot ratio then Martingale might be useful. However, on its own, a Martingale-based EA would ultimately result in blowing your account.

 

[Fin_Trader]

I think that in trading it is better to use stop losses, rather than averaging with an increased lot against the trend movement as with the Martingale. After all, when a stop loss is activated, you will lose only a small part of your deposit, and when trading using the martingale method, if the trend movement continues, your deposit will completely disappear.

 

[skrimon]

I think that in trading it is better to use stop losses, rather than averaging with an increased lot against the trend movement as with the Martingale. After all, when a stop loss is activated, you will lose only a small part of your deposit, and when trading using the martingale method, if the trend movement continues, your deposit will completely disappear.

Absolutely, stop-loss orders are a far safer approach than the Martingale strategy. While Martingale promises eventual profit with a single win, the risk of exponential losses with each consecutive loss is extremely high. A single large price movement against your position can wipe out your entire capital, making stop-loss orders a crucial risk management tool for responsible trading.

 

[Fin_Trader]

Martingale can help you make money only if the price moves in a narrow horizontal range or flat. But such flats are often short-lived and the price can come out of it at any moment and begin its sharp and prolonged movement in one direction, providing us with a large minus on the deposit if we were trading using the martingale method at that moment.