Advisor to Invest System. Classic Martingale after a year
Many traders today confuse the concepts of martingale and averaging. Almost all modern expert advisors use only elements of martingale, averaging losses through a series of simultaneously opened orders with increasing position size.
This expert approach allows for maximum profits, but at the same time, the likelihood of losing your entire deposit in one fell swoop is extremely high.
However, the classic martingale, unlike averaging, involves the use of a stop order, and each new order, if the deal is closed by a stop, is opened with an increased lot.
Thus, when using the 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 averaging systems.
In this article, you will meet one of the representatives classic martingale, which has become history, but has not lost its effectiveness.
It's worth noting that the first version of the Invest System advisor was developed back in 2005, before the emergence of the well-known internet project Invest Systems, with which many may associate this expert.
The advisor has a simple algorithm and can be used on absolutely any currency pair or time frame, making it a multi-currency and universal expert.
However, at the time of the robot's creation, the author of the expert recommended it primarily for the GBP/USD currency pair, so it is better to give preference to this one.
Installing the Invest System advisor
The Invest System advisor is a custom development, so to use it, you'll need to download the robot file at the end of this article, then 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. Specifically, you will need to copy the previously downloaded advisor file to the appropriate folder in the MT4 trading terminal data directory.
The procedure is described in detail - http://time-forex.com/praktika/ustanovka-indikatora-ili-sovetnika
After updating your terminal, Invest System will appear in your list of advisors. To start automated trading, simply drag the robot's name onto your chosen currency pair.
Trading strategy. Settings
The Invest System advisor is based on a simple indicator-free strategy, with an element of 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 the signal candle is lower than the closing price of the previous candle, the advisor opens a sell position.
After opening a position, the advisor places a stop loss and profit for the order. If the advisor closes at 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 management, 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 target in points. In the Lots 1, 2, 3, and 4 lines, you can set the volume for each position if the martingale is triggered.
Testing the Invest System advisor in the strategy tester
In order to test the viability 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 of 2016. Here are the test results:
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, it should be noted that, in addition to 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.
