Anti-watering strategy: how to replace the martingale

Anti-watering strategy: how to replace the martingale

Anti-watering strategy: how to replace the martingale

The classic martingale system has enough followers: many people are attracted by the desire to make a lot of money quickly. However, there is one fat "but": sooner or later, the martingale drains the entire Deposit.

Today we will look at a strategy that does exactly the opposite.

Many people know that the martingale system is a rather dangerous and risky method of overclocking the Deposit. Anti-martingale is built on exactly the opposite principles: it eliminates all the disadvantages of the classic predecessor. Do you want to learn more about the anti-Martingale strategy? Then watch the video below! After watching this webinar, you will master all the subtleties of this trading method, understand how and how much you can earn on it, and whether such trading carries risks.
There are several definitions of an anti-Martingale system. Before we move on to the concept that I use, let's remember once again, using the example of the Ilan expert Advisor, what a classic martingale is.

In the screenshot, you can see how positions are opened.
As the downward trend moves, buy positions are opened. On the subsequent rollback, the system calculates the total take profit and closes the entire series of trades.

Based on the fact that the trend is not desirable for us, we understand that flat movements are what will bring a stable profit.

See how many trades are closed in sideways movements.Having made a simple analysis of the Ilan expert Advisor, we come to the conclusion that it is best to include it in flat market movements. And when we got to the flat movement? That's right, in the Asian session.

I will highlight the parameters that affect future income and risks:

Lot size – the volume of the position that will not overload the Deposit
Multiplication factor of the next position.
Step in points – the distance through which new positions will be opened.
Percentage of total drawdown on the Deposit.

According to the classic Martingale, you can earn from 10% to 80% per month. It all depends on the aggressiveness of the settings and the current market situation. The most optimal timeframe is H1. the martingale method is used by traders who have an idea of Deposit dispersal tactics.

Optimal options for using classical Martingale averaging:

Flat movements
Asian session
Non-volatile currency pairs

As you have already understood, the trend is not our friend. We need flat, sideways movements.

I will demonstrate a statement where trading was conducted only during the Asian trading session.
Trading was conducted only at night Moscow time from 22.00 PM to 8.00 am, sometimes a series of transactions was transferred to the day. About 6-8 currency instruments participated in the trade. In just a month, $ 7,230 was earned with a maximum drawdown of 11.37%. It is worth noting that the market conditions for this annual period were ideal.

Sooner or later, on rough settings, the Deposit is drained. This is the fate of all expert advisors built on the martingale system. In order to protect yourself, you need to systematically withdraw profits.

I repeat that sooner or later the Deposit is drained! Almost everyone who used martingale lost their deposits.
Sooner or later, the robot will open a lot of transactions, and the Deposit will not survive, So you should find some other solutions.

If we know that we will merge the Deposit anyway, then why not do the opposite? This is the whole point of the anti-Martingale method. Where in the classic Martingale we bought, we will sell. Where we sold, we will buy. Where previously there were take profits, there will be stop losses. And the profit will be fixed as a percentage of the Deposit. Where we made money with classic martingale, we will fix losses with anti-Martingale. However, when the Deposit is drained during the Martingale, the anti-Martingale earns.

Comments (0)