SteadyMartinGear EA

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SteadyMartinGear is a combination of three words: “Steady”, “Martingale” and “Gear”. Martingale is a kind of money management system which increases the lot size after losing. It seems to be paradoxical to link this word with “steady” because for long, traders consider martingale a risky system. SteadyMartinGear is an attempt to merge the two with a gearbox so that the risk becomes manageable. In short SteadyMartinGear is to put martingale under control and make it into a stable and contained EA.

The trading logic of SteadyMatingear V1.0
SteadyMartinGear is a trend following martingale EA. It is composed of two parts: [1] trading signals and [2] a 5-step martingale system. The trading signals provide an analysis on market conditions and set the trading direction, while the 5-step martingale system controls the lot size and ensures that the risk is manageable.

Trending or Ranging?
The traditional way of understanding the market is to divide it into the trending market and ranging market. Different markets call for different strategies. A single strategy might wins in one but fail in another. But the question is how we can tell which market we are in. The method we use is Bollinger Bands + Envelope. The red lines in the diagram below are Bollinger Bands, while the blue lines represent Envelope. When the blue lines embrace the red lines, it is ranging market. When any one of the red lines (the upper line or the lower line) breaks out, it is the trending market. We stop trading when the market is ranging, because the market direction is not clear. It is easy to lose. In trending markets, the direction is clear. If the trend lasts for some time, the chance to win is high. We use the same principle to monitor the market conditions on different timeframes.

trend or range

Market Direction Indicator
The charting software we are using has an obvious drawback. When we use a high timeframe, we cannot see detail movements. When we use a low timeframe, we lost the whole picture. We have to flip between timeframes if we want to see both. The concept behind the indicator called “Market direction indicator” is to help traders to see the market conditions of 4 frequently used timeframes say D1, H4, H1 and H30 at a glance. It shows four dots on the upper right corner each stands for one timeframe. The dots can have three colors: [1] Green, buy. [2] Red, sell. [3] Grey, wait. Here are two examples.

Example 1 – This is a chart on EURUSD. From left to right the first two dots (D1, H4) are green, which means an upward trend on higher timeframes. The third dot is red, which means a down trend in medium timeframe. The last dot (M30) is green, which means an upward trend in lower timeframe.

example 1

Example 2 – This is a chart on USDJPY. From left to right the first dot (D1) is green, which means an upward trend. The other three (H4, H1, M30) are grey, which means the market is ranging.

example 2

The Market direction indicator is for human eyes. It is drawn here only for illustrating the general trading logic. An EA does not need to see the colors of the indicator. We can simply input the readings of the indicator and make it into an EA. 

5-step Martingale Systems
In forex, the word “martingale” usually means a double-up system. After losing, the trader increases the lot size by 100%, such as 1, 2, 4, 8 and 16 and so on. The increment ends only when the trader finally wins. This kind of money management system has a bad reputation because if the trader did not win after several attempts, the lot size would rocket up and finally blew up the trader’s account. However, the definition of “martingale” can be extended to cover all kinds of systems that increase lot sizes after losing. We called them “increments”. The increments do not have to be 100%. They can be milder, like 50% or smaller. We have done a research with a simulator. Even a 20% increment can make
the backtest curve go up smoothly.

The chart on the left below is the win/lose ratio (the yellow line). We can see that on the whole we do not have any luck. If the lot size is fixed, we will lose. But when we use increments, we can win with a bad win/lose ratio. The green line on the right shows the balance when we use an increment of 20% after losings, and a decrement of 20% after winnings. To make the green line straight, 20% seems to be the minimum requirement. We have lower values, it worked but the green line is not that smooth.

winloss ratio

It works even if the increment is 0.01. Here below is an example. The lot size is increased by 0.01 after losing and reduced by 0.01 after winning. In the long run, it forms an upward curve. But it is not smooth and sometimes, it can take so long to recover from heavy drawdowns that most traders will lose confidence and give up after falling into the dip.

add one
The win/lose results of the simulator is by random. In extreme cases, there can be 20, or even 40 losses in a row. However, this is very rare in forex, if we believe that forex is not random.

What’s the difference between SteadyMartinGear & traditional martingale EAs?
Traditional martingale EAs pay little attention on market directions. Basically it is just a simple money management machine. It looks alright at normal times, but cannot stand difficult market conditions. Those extreme market situations are like typhoons, earthquakes, and tsunamis. Though not common, they will surely strike. That is why martingale EAs cannot be used for long. They blow up accounts.

Usually martingale EA vendors can only show short-term results and prey on inexperienced traders. Some of them are scammers who put cheating code in the EA, making the EA stop trading on historic losing days. Actually there is a way to find out even if we do not have the source code. It is by changing the date of the historical data to a few weeks earlier or later, and you will see the difference.

We are honest developers. To make SteadyMartinGear works, we put a lot of attention on monitoring the market directions. This helps to reduce the chance of consecutive losses. Also, we use 99% tick data backtest to ensure that the account is safe in all testing years, and the drawdown level is acceptable.
Here are two backtest reports. 

EURUSD, 2010/1/1–2015/9/30, CapitalShare=-1000, GearSteps=5

test reprot EurUsd

USDJPY, 2010/1/1–2015/9/30, CapitalShare=-1000, GearSteps=5

test report UsdJpy

Base Lot Size 1X
If we want to lower the drawdown, an increment and decrement of 20% will be enough. Since the smallest trading lot size of MetaTrader 4 is 0.01, to have an increment/decrement of 20%, the smallest lot size must be 0.05. But many traders might not have enough capital to implement this strategy. For example, if a trader has only US$1000 in his account, to start with 0.05 lots, he will over trade. To cater for small accounts, we will use a base lot size of 0.01. To cater for different capital amounts, SteadyMartinGear will calculate the optimum lot size from the available balance and stop loss so that the loss of a trade will not exceed 1% of the account. We called this 1X. In MetaTrader 4 the minimum value of 1X is 0.01 (or Min Lot).

Multi-Step Increment / Decrement
SteadyMartinGear will start with the lot size of 1X. When it loses, the lot size of the next trade will be doubled. When it wins, the lot size of the next trade will be halved, until it goes back to 1X. Though we try very hard to avoid, sometimes there will be losing streaks. If we let the lot size increase indefinitely, it could grow beyond control and blow up the account. Therefore, there must be a stop to protect the account. The way to do it is to limit the number of increments. While SteadyMartinGear always start with lot size 1X in a new account, on a 5-step increment setup, the lot size will varies between 1X, 2X, 4X, 8X, and 16X. If you find this too risky, you can choose a 4-step increment (1X, 2X, 4X, 8X) instead.

What is the difference between the Demo Version and Full Version?
The demo version can only work  on a demo account. The Full Version has no restriction.

How to get SteadyMartinGear (Full Version)?
You can obtain SteadyMartinGear V1.0 (Full Version) at the price of US$50. You will get the a user manual and an ex4 file. The source code is not included.

The product is distributed through ClickBank. Please click the button below if you want to proceed.

button_2_medium2

The following link is for people in China:

 

Please make sure your account can run the demo version before you purchase. This will save a lot of trouble. I also assume you have run the demo version for some time before making any purchase. A refund is possible. According to our refund policy, customers can request a refund within 60 days if they are not satisfied for any reason.

Thank you for your patience to read up to now. If you have any questions or suggestions, please feel free to write to us at steadywinner@gmail.com . We will try our best to answer all your questions. After all we are just traders like you. Learning forex is a long way, I hope we can help one another.

Happy trading

Ming  and Henry

SteadyWinner Development Team   Email: steadywinner@gmail.com

 

SteadyMartinGear Q & A

http://steadywinner.com/?page_id=358

SteadyMartinGear Q&A

 

 

Disclaimer and Risk Warnings

Trading any financial market involves risk. The EA and the content of the website and all related correspondence are neither a solicitation nor an offer to purchase or sell any financial instrument. Although every attempt has been made to assure accuracy, we do not give any expressedor implied warranty as to its accuracy. We do not accept any liability for error or omission. Examples are provided for illustrative and educational purposes only and should not be construed as investment advice or strategy. No representation is being made that any account or trader will or is likely to achieve profits or losses similar to those discussed. Past performance is not indicative of future results. 

Copyright 2010. All rights reserved.

 


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