This homemade Robot will make its way to the testing ground of Desktop come next week. The idea is not original as it is taken from the book of Roulette Trading. But some tweaking was made.
So lets discuss how potential this one will be.
It is best to trade this on the FXTM account where it has no commission per trade.
Of course, like any trades, you need some indicators that can ensure the longest winning sequence that it can. In R2 we require 5 straight wins which is not actually impossible. As the open trade will depend on what the indicators say, it could be B or S or a mixtures of both in any orders. Discussion on the indicators next time.
Lets discuss on the mechanism.
Unlike conventional trading we 'group' our trades into cycles. The winning cycle is 5 trades. Meaning that if it complete 5 trades in wins then it complete a cycle. The rule is win a trade and proceed to the next one. If loss, start all over again. Now what is the difference in each cycle ?
Well this is more or less like an anti martingle. In martingle, you double your lots on a losing trade just to make up the losing one. Like we all know the lost can be tremendous that it can blow the account and significantly reduce the account balance.
The TP and SL for each trade is 15 pips. It can be any amount but both must be in equal amount for this mathematics to work. Making it lesser may result in easy SL when price retrace.
The table shows how much the lots increase on each winning trade (doubler)
At any level when SL is hit the losses seem to increase. But if we take them as 'groups' it will always equal to -1.5. So at any level below level 5 with a loss, the 'accumulative' loss will still be -1.5.
If trading is done conventionally with 15pips as the target the total profit for 5 wins is 7.5. Small thing to shout about.
But what if the wins occur with the roulette increasing lots (double) of each level, the profit will be 620% than conventional or 46.5 !!
Lets face the fact that it is hard to get a perfect 5 wins in a row (not impossible but hard) and they will be losses along the way. Let it will take 31 group of trades of accumulative -1.5 loss to equal to 1 win !!! And that is quite unbelievable !!
