Ok… I have to admit. I lied in my previous post with regards to cooling off and about reseting and rebooting my automatic trading activities. Kinda screwed up what I plan for August…

But there is a reason for it…. Well, last month I kept a secret from you all. I was secretly testing an EA. Have a look at this…

Sorry… I did not insert my statement here…

This graph was from my IBFX account which I had set aside for Fedora FX due to hedging issues, I needed to create another account so that it does not messed with my main account which was using Cyborg.

As you can see, this is obviously an Martingale Strategy EA with the bump here and there on the curve. Pretty interesting no?

I will not hide the fact that I am very afraid to use a Martingale strategy, on the other hand I can not deny that there is a possible way to use this strategy successfully in forex. I just needed to find that ‘right’ strategy… and I believe I have…

Now let me show you my trade summary… (no… not statement just the screenshot )

I only started with $235.00 and cranked up an interesting profit of $57.05… Now this secret testing only started close to the end of the month on the 26 July 2009 after I started bickering about how I was clawed by losses.

That my friends was a cool 24% profit in the span of 5 days.

Now if that did not convince myself that this maybe the magic of martingale strategy at work than this might reinforce my believe.

This graph above is from my Alpari account…  I followed my faith and took it for a wild ride on this account. I was already crying my balls out when my account was at the bottom….

But after I let this secret EA which I tested on IBFX on my Alpari account… Well… I don’t really need to tell you what happened isn’t it..

Now, that is not your ordinary Martingale curve as IBFX. Why? Because I applied some manual intervention. I had to manually close trades that were eating into my equity. I had set my drawdown to be only 10% of my balance. So when it does reached my drawdown level I had to close some trades.

As you can see, it quickly picked up with any problems. The trailing off on the graph was me closing all my trades out manually for the weekend.

Never leave the trade over the weekend is the forex master’s mantra. Especially with a martingale strategy, you can bet your ar$e I follow that rule…

Here is the killer… For my alpari account I only started this EA, on the 30 July… The last 2 days before the month closed…. (started around trade no 140 on the graph).

Which means it took 2 days to recoup from a lost of around 1244 to 1385… profit of 141. Ok… give or take because I was also still running Boomerang, Winalot and EAezGor.

So… I am going to continue with this secret testing.

Why so secret? Why can’t I reveal this secret EA? Well, because it is a Martingale strategy. I don’t really want to shot my big fat mouth by declaring that I may have found the best forex ea and then the next week I get slaughtered by this strategy.

I know all too well the power of Martingale. It’s a double edge sword.

Let me be the guinea pig first. In probably 2 weeks time or middle of August. I will let you know what this secret EA is but if you can guess or figure it out than fine and dandy…

Oh… on top of that, I will display my statement above just to show you that I am not bull$hitting here with my fancy nice graph…

Time will tell….