D Alembert System
Hi traders...Does anyone use the D Alembert System for money management....( Increase lot size when loosing ...decrease when you are winning...less risky than martingale)any thoughts if it could be implemented in the CP EA
Hi traders...Does anyone use the D Alembert System for money management....( Increase lot size when loosing ...decrease when you are winning...less risky than martingale)any thoughts if it could be implemented in the CP EA
Hi Sir..... main difference between the two systems is that the D Alembert is far less risky than the Martingale...the base use of martingale is to double up everytime after a loss...and your drawdown can get huge....with D Alembert you adding 1 unit after each loss and removing one unit after each win ...Its very hard to blow up your whole account as the progression is much smoother (see attached image below )( can be modified we can decide to add 2 units after a loss and remove one after a win or vice versa...) Can the Current parameters in CP EA increase lot after a win and decrease after a loss.. haven't been able to achieve that
D Alembert
With good risk/reward ratio lets say 1 as to 3...we can decide to add 1 unit after each loss and remove 3 after each win...works much more efficiently in outstaying a streak of losses than Martingale... For example with Martingale after 10 consecutive losses with a lot coeff of 2...we would have a total loss of $512(drawdown) ....but with D Alembert we would have $55(drawdown)...with a progression like 1 ,2, 3, 4, 5, 6, 7, 8, 9, 10 ...and we win trade number 11 ...means we get around $33 with 1 : 3 R/R ...we jump 3 steps back if we win...we recover all the losses...if not we continue from step 7 .....we can have 30 losses and maybe 5/6 wins and end up in a profit... without the risk of killing our account....Hope Andrey Sir will help us with this
Hi Sir..... main difference between the two systems is that the D Alembert is far less risky than the Martingale...the base use of martingale is to double up everytime after a loss...and your drawdown can get huge....with D Alembert you adding 1 unit after each loss and removing one unit after each win ...Its very hard to blow up your whole account as the progression is much smoother (see attached image below )( can be modified we can decide to add 2 units after a loss and remove one after a win or vice versa...) Can the Current parameters in CP EA increase lot after a win and decrease after a loss.. haven't been able to achieve that
How should it work with series of orders?
It is clear how to apply it to single trades, but we have series in the CP, means next order opens while previous is not closed. So, next lot will be always like "last lot + some amount". But we already have this mode.
We can also try to apply this new mode with "Apply martingale after loss", that affects lot of the new series. Is this exactly what you want?
Yes the other system is the contra D Alembert ( Opposite of D Alembert) instead of adding 1 unit after a loss and removing 1 unit after a win.....With Contra we are adding one unit after each win and removing 1 unit after a loss....it can be incorporated just like the Anti Martingale ( but with a smoother progression)
i see the picture is more profit martingale it is over zero pounds on same time with other system ( look at the picture red line )
but when the DD side it is good..
This money management system would be a nice addition to the CP EA.
Yes it would be very effective conservative
How should it work with series of orders?
It is clear how to apply it to single trades, but we have series in the CP, means next order opens while previous is not closed. So, next lot will be always like "last lot + some amount". But we already have this mode.
We can also try to apply this new mode with "Apply martingale after loss", that affects lot of the new series. Is this exactly what you want?
We can try to implement it with partial close or use SL..because the main idea of this money management is to allow lots flexibility ( lots can go up and down) unlike Martingale which goes one way...with this our lot size determined by the outcome of the next trade
With the mode Apply martingale after loss... what happens when the next trade wins...will it be able to move x steps backwards instead of going back to the initial lotsize... assuming ini lot is 0.1 then we have 5 losses in between ...thus we will be betting 0.6 and if we win( but still in a loss or haven't achieved our Global Take target Profit) we need to move x steps backwards (for example to 0.3) rather than go back to 0.1 like martingale would (and if we archive our Global TTP we reset the lot sizes) ....it can work with series of trades if we use a SL