Cheryl Dumped Me

Filed Under (Journal) by Casey on 26-04-2011

Another sad time for me…

I know… I know… people has already said I told you so. Martingale is an account blower. I thought that with a nano account I could manage to juggle two martingale all at once while I focus on GoMarket where I Martingale that account pretty aggressively.

Alas… A strategy that failed… Or rather two hot chickadees that were too hot to handle all by myself.

Sure… all those who says Martingale will surely blow up ones account will probably say… “There I told you so”.

And I for one will not deny that Martingale is dangerous . I know the risk was there… it has been clearly spell out on my blog many times. I also did mentioned before that Martingale was like a hot sexy woman and they must be treated right.

Well, I guess I did not treat them right. Not many women are into threesome. But it will always be one of the most fantasized about experiences by every hot blooded man.

Even from the start Cheryl was already showing some signs of fading. From myfxbook you can see the curve was moving downwards rather than upwards. That would have already been a sign for me to do something about it. But like any hot blooded man who takes EA for granted, I ignored the signs which Cheryl was exhibiting and that was a big no-no.

Ignoring a hot chick like Cheryl would only end up with a slap in a face and I bet Ashley Cole knows this all too well.

Anyway… After being dumped by Cheryl… I re-read my previous article about Martingale and I practically did not practice what I wrote about when it comes to Martingale.

I should have monitored the signs… When Cheryl was dumping me… Megan threw a fit… but I manage to get her under control however the danger is still not over. My current equity level is 78% (at the time of this posting) Thinking about cutting my losses here.

So what was the sign and what was the lesson learned here.

The trend was the sign… In Cheryl… all the position was taken against the trend. I wasn’t monitoring the trends of the currency and when the drawdown happened it was already to late. All I could do was to hope that it retracted to my take profit level.

Now… If you look at Cheryl, I was trading EURUSD, AUDUSD, GBPUSD. These three pairs were like trending like no bodies business. I did not monitor it and so… I paid the price for it.

For Megan, the only trending currency was AUDUSD, that was why I manage to control it… However… I still am not in the clear as I also am trading GBPUSD but the drawdown is still manageable.

Now I am closely monitoring Megan to see if my remainder open position can still be rescued.

So what was the lesson that I have learned?

1. Martingale is a bloody bit(h that needs careful attention
2. Trade martingale with the trend and not against it.

With the two lesson learned. I now am trying a new strategy approach on my GoMarket account. Using Martingale (FX Pitbull) to trade with the trend.

Thus, if I see that on a daily chart that the trend is blue… I put the settings to trade only long. And if it’s red… I set MT4 to trade only short.

Now…  Martingale works very nicely in a trend less direction. So when I can identify that there are no trends… I will switch the settings to trade both ways.

Will this work? I don’t know… We shall see.

As for my Megan account, once I manage to get out the trade for PipStrider, which would not be too soon. I will continue with Cyborg. I mean… Cyborg has been doing well for over a year at a rate of 5% return monthly.

The only thing was I got so greedy and wanted to see if I could push my returns up higher with PipStrider and FX-Pitbull. And Cyborg continues to prove me right.

One thing I did with Cyborg was a few months of testing and backtesting. Where else PipStider and FX-Pitbull was put on live in haste. That was how I got screwed…

A strategy like Martingale must never be dealt with in haste or feel the wrath of an angry hot chick who will burn a hole in your account.

Many people might be wondering why I am still into Martingale after blowing two account? I really don’t know… As I said it before Martingale just intrigues me.

It’s like asking me why do you still love my wife so much even though she at times might treats me bad… I don’t know. My wife just intrigues me, women are such an interesting creature are they not?

Ok… I digress a little here but I just need to test and try Martingale out in Forex until I can not test and try no longer…

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