Advisor to Invest System. Classic Martingale after a year
Many traders today confuse the concepts of martingale and averaging. Almost all modern advisors use only martingale elements, averaging losses with a series of simultaneously open orders with increasing position volume.
This approach in Expert Advisors allows you to maximize profits, but at the same time, the probability of losing your entire deposit at one moment is at the highest level.
However, the classic martingale, in contrast to averaging, implies the use of stop orders, and each new order, in the event of a transaction being closed by a stop, is opened with an increased lot.
Thus, when using a classic martingale, there is no risk of losing the entire deposit at once, but at the same time its profitability is an order of magnitude lower than that of modern averagers.
Actually in this article you will meet one of the representatives classic martingale, which has become a thing of history, but has not lost its effectiveness.
It is worth understanding that the first version of the Invest System advisor was developed back in 2005 before the appearance of the famous Internet project Invest Systems, with which many may associate this expert.
The advisor has the simplest operating algorithm and can be used on absolutely any currency pair or time frame, which makes it a multi-currency and universal expert.
However, at the time the robot was created, the author of the expert recommended it primarily for the GBP/USD currency pair, so it is better to give preference to it.
Installing the Invest System advisor
The Invest System advisor is a custom development, so in order to use it you will need to download the robot file at the end of the article, after which you need to install it directly into your MT4 trading terminal.
The installation procedure for the Invest System advisor is no different from installing any other custom advisor and follows the standard procedure, namely, you will need to drop the previously downloaded advisor file into the appropriate folder in the data directory of the MT4 trading terminal.
The procedure is described in detail - http://time-forex.com/praktika/ustanovka-indikatora-ili-sovetnika
After updating the terminal, Invest System will appear in the list of advisors, and in order for it to start automatic trading, you just need to drag the name of the robot onto the currency pair of your choice.
Trading strategy. Settings
The Invest System advisor is based on a simple indicator-free strategy, with an element of the classic martingale.
So the expert compares the closing prices of the last two candles and if the closing price is higher than the closing price of the previous candle, the advisor opens a buy position.
If the closing price of a signal candle is lower than the closing price of the previous candle, the advisor opens a sell position.
After opening a position, the advisor sets a stop order and profit for the order. If the advisor is closed by stop loss, the expert waits for a new one and opens a position with a double lot.
The advisor settings have a limited number of variables that affect only the transaction support, and not the entry point.
So in the StopLoss line you can limit the loss for one position in points, and in the TakeProfits line you can set a goal in points. In the Lots 1,2,3,4 lines you can set the volume for each position in case the martingale is triggered.
Testing the Invest System advisor in the strategy tester
In order to test the prospects of using the Invest System advisor on a real account, we decided to test the robot with default settings on an hourly chart Euro/Dollar currency pair.
The test was conducted for the entire year 2016. So, look at the test result below:
In conclusion, it is worth noting that, despite the fact that the advisor was developed in 2006, its settings have not lost their relevance to this day.
However, I would like to warn you that in addition to the martingale, the expert uses the tactic of sitting out losses, since the stop order is several times higher than the potential profit.
Download the Invest System advisor.