Hello all, thanks for your kind response
Hi Xela, thanks to your advice. It makes sense.
As I continued to study methods of money management, i found that "Pyramiding: Playing with the market’s money" suggested by Van K. Tharp.
This method sounds like an answer as it works well in a trending market.
Essentially, you will lose the same amount of what you used to lose but you will double/triple your profit from the amount you used to profit.
I'm sure they have, but the very few among them who are still here have probably learned better, or at least learned to keep fairly quiet about it.
To put it politely, it's not a very sensible idea. (Someone far more outspoken and far less tactful than myself might even describe it as "ridiculous nonsense".)
Less damaging and dangerous than an actual Martingale, for sure, but Paroli/anti-Martingale staking is still illogical and highly misguided.
Here's the main point: there's no sense in allowing the position-sizing for a forex trade to be determined by what the outcome of the previous bet happened to be. It has no logic at all, and ultimately boils down simply to a variation of the "gambler's paradox".
Either your system/methodology has a genuine edge (positive expectancy) or it doesn't.
If it does, then it doesn't need a "staking plan" in which the next position-size is determined by the outcome of the previous bet.
If it doesn't, then you shouldn't be trading with it at all, let alone trying to make it more profitable (or "less unprofitable") by messing about with its stakes in that kind of way, in a misguided attempt to give it an edge it simply doesn't have.
These things are all just a distraction from learning the realities of money management and risk-management.
I'm afraid they're quite commonly discussed among spot forex traders.
I'd advise you not to let your time be used up with nonsense like this, when you could instead spend it reading a simple book which explains the logic and math of position-sizing principles, and then you can put all this "reverse Martingale" stuff behind you.
(If you want a recommendation, I'd suggest either Profitability & Systematic Trading by Michael Harris, or Trade Your Way to Financial Freedom by Van K. Tharp - especially the second half of the book ... but there are others, too: it doesn't really matter too much where you get this kind of information from, as long as it's a proper textbook and not online chat/websites/videos/forums where spot forex traders discuss it, as they tend collectively to be somewhat naive and questionable in their judgments around subjects like this. No disrespect to anyone intended, but that's the way it is!).
Hi Xela, thanks to your advice. It makes sense.
As I continued to study methods of money management, i found that "Pyramiding: Playing with the market’s money" suggested by Van K. Tharp.
This method sounds like an answer as it works well in a trending market.
Essentially, you will lose the same amount of what you used to lose but you will double/triple your profit from the amount you used to profit.
