DD Reduction within a Martingale Group
Hello, I have an idea to reduce the risk trading Martingale grids. First I use only trend indicator filtered anti Martingale trades. This prevent a large DD by adding useless trades when the price rise on fall sharp because of an event. To make this even saver I would like to have an option that could trail the profit from the last trade with the loss of the first.
I give one example x2 multiplier
1st 0.01 lots (-100 pips)
2nd 0.02 lots (-30 pips)
3rd 0.04 lots (-15 pips)
4th 0.08 lots (+20 pips)
In this example the 4th 0.08x20=1.60 and the 1st 0.01x-100=-1.00 have a profit and trail of these two trades could start. When the price reverse against the trades the 1st and 4th are sold in profit. Now we have 2 trades left and we could have two trades more one 0.08 lots and one 0.16 lots. In many cases when the general trend is against you there are still reversals that might end in this scenario. The sum of the first and last trade is positive but the sum of the whole trade basket not. The advantage is that DD could be reduced and the remaining trades could be closed earlier.