There was a recent thread about position sizing. Made me think about how in my countless hours of education via ET, I have only seen one full-time trader, "40yotrader", who was using a martingale position sizing method.
My question is, does anyone out there use martingale successfully?
From all of my research, it seems intuitive that the anti-martingale is the only way, probability wise, to:
1) ride out a drawdown before blowing out your account - the very event that could occur with martingale by doubling up every time you lose, and;
2) to protect you from a "fat tail" or "six sigma" event - whether that occurs during a drawdown or not. It seems that "six sigma" events actually occur more often than we say they should.
Your input please.............
My question is, does anyone out there use martingale successfully?
From all of my research, it seems intuitive that the anti-martingale is the only way, probability wise, to:
1) ride out a drawdown before blowing out your account - the very event that could occur with martingale by doubling up every time you lose, and;
2) to protect you from a "fat tail" or "six sigma" event - whether that occurs during a drawdown or not. It seems that "six sigma" events actually occur more often than we say they should.
Your input please.............
lol electric - I cancelled the original reply due to non-response - ended up "doubling" my reply