What is Martin EA
The Martin EA strategy is a money management method, and its basic principle is based on the pyramid-like way of adding positions. When the order is covered, keep increasing the position in the same direction to amortize the cost. As long as the market retracements, the series of quilt orders can be released. But you have to know that the future economy and market are unpredictable, how do you know whether the market is volatile or trending? If you encounter a trend, such continuous increase in positions will definitely explode sooner or later, and for Martin EA, your capital requirements are also very high, otherwise the position will be liquidated before the market pulls back!
Martin is particularly favored by programmatic traders for the following points:
- The principle of Martin’s strategy is simple.
As long as he is dead, and the amount of funds is large enough, Martin will not liquidate his position in theory. The market conditions always switch back and forth in different time periods, and one retracement can free all quilt cover orders.
- The drawdown of Martin’s strategy is calculable.
Martin’s increase and retracement can be calculated in advance under the condition of equal spacing and constant increase multiple. This means that the Martin strategy can be measured mathematically.
- Martin has less difficulty in programming code.
Compared with other strategies, the coding difficulty of Martin strategy is less. Under the current situation of lack of talents for foreign exchange EA writing, it is favored by all developers.
- A good Martin strategy to deal with the volatile market can be a complete victory.
As long as he is dead, and the amount of funds is large enough, Martin will not liquidate his position in theory. The market conditions always switch back and forth in different time periods. A retracement can free all quilt cover orders.
Forex Martin EA
Is the inevitable outcome of Forex Martin EA really a liquidation?
It is said that the result is a liquidation, because EA is basically a software for ordering, and frequent transactions will definitely liquidation! In addition, EA usually closes the position with a profit of a few dollars, and then trades, and the system determines that it is wrong, and then closes the trade. Repeatedly, there is no profit at all! The long-term end result of EA is that the liquidation is certain. Some people use EA to make profits and win small money and lose big money, and it is staged profit. What you see may be the process but not the result!
Martin-like EAs have always been loved and hated by people. When the market fluctuates, the profit is very stable. Once it encounters a large unilateral market or data market, it is likely to immediately liquidate. If you use large capital to carry the principal, although you can always escape the liquidation crisis in the end, it is not worthwhile to calculate the overall profit rate. The profit rate of investing so much principal is less than ten per month. One part, can such results satisfy you? Another method is to manually close the position in time to avoid excessive losses, but I personally feel that this method is not practical, because when the market comes, it will always be caught off guard, and the slower processing may cause relatively large floating losses. Moreover, the final profit rate of cutting meat from time to time is also very poor.
One of the reasons why the Martin strategy is so popular in foreign exchange trading is that, unlike the stock market, the exchange rate does not fall to zero. Although the company can easily go bankrupt, the state will not. Sometimes, a currency depreciates, even if it depreciates very quickly, it will not fall to zero. Of course, if the exchange rate really drops to 0, it will be very terrible. The foreign exchange market has its own unique advantages. For those traders who have strong capital to do Martin Strategy EA, foreign exchange EA is very attractive. Traders can earn interest to offset part of their losses. Traders can buy high-interest currencies and sell low-interest currencies. If you hold a very large position, you will earn a lot of interest, which can also reduce the average price of breakeven.