Forex Fury 2018 & Anti-Martingale

Yes, I know I might be looking too far forward here, but we are just a couple months away from 2018, so we have to start thinking about the future of Forex Fury. Many EA’s take years off, or disappear and stop performing over time.

I don’t think that’s going to be the case here, and there’s a few reasons why.

Forex Fury 2018

The first reason, is the fact that Forex Fury is providing new accounts, and new settings. When the EA was first released, the developers only provided 1 pair, GBPUSD. In the past three months, they have added a EURUSD, and  USDJPY. My favorite is still the GBPUSD account, but these new accounts prove that you can spread the risk, and it gives us a back up plan. If GBPUSD doesn’t perform as well, then we can put more money into these other pairs as a way of diversifying.

I’ll link you to the accounts here, so you can take a look at them yourself.

USDJPY Account

These two accounts show some modest gains so far, and I’m really excited about 2018 with what they have in store. I’ve also talked closely with the support team, and they tell me that we should expect even more accounts, with different time settings, and pairs. I’m extremely pleased with this continued development. This is looking more and more like a long term investment, which is exactly what I’m interested in.

Anti-Martingale Strategy

You’re probably wondering what this is all about. Well it’s a little off topic, and not Forex Fury centric, but this is a trading approach that I frequently employ, so I was hoping I could share it with you. So, with that being said, enjoy.

anti-martingale-forex-fury

The Anti-Martingale strategy is as it sounds the opposite of the Martingale Strategy. Instead of doubling your risk every time you lose you will half it and double it when you win. The assumption is that it is better to capitalise on ones winning streaks than on the losing streak, building on the term “let your profits run and cut your losses short.

There are a few points to keep in mind with this trading system:

  1. By doubling up your risk on every winning trade you increase the chances of taking a big loss that will wipe out all of your profits if you do not couple it with a risk reward ratio greater than 1:1.
  2. Losses will incur during periods where you incur a loss after every win instead of a streak and you do not have a risk reward ratio of at least 1:2.

Example in a system of taking profits at a risk reward ratio of 1:2
Assume that you have $100.

The first trade you place risks $10 and is a winner, risk reward of 1:2, you profit $20. You then double your risk to $20 on the next trade and you win again taking profits of $40. You follow the same process for your third trade which also wins. However your 4th trade is a loser and you lose $80. Your account balance is now $160.

This money management strategy is better at taking profits than simply always risking the same amount for every trade but the downside is that when a draw down does occur it will be quite a big one, fortunately the system caters for that by halving the position sizing and therefore decreasing risk rapidly.

Another scenario would be to include the winning and the losing streak and see the effects it has on your profits.

Example:
Assume a risk reward ratio of 1:2, an account balance of $100 and consecutive wins to consecutive losses are 4 to 3 respectively.

The first trade you place risks $10 and is a winner, risk reward of 1:2, you profit $20. You then double your risk to $20 on the next trade and you win again taking profits of $40. You follow the same process for your third and fourth trades which also wins. Your account balance is now $400.

Your account then incurs the 3 expected consecutive losses for which you halve the risk after every loss keeping a risk reward ratio of 1:2.

The strategy will even hold up in a scenario where instead of having a run of consecutive wins and losses you incur a one for one ratio as shown in the graph below.

Assume a risk reward ratio of 1:2 and account balance of $100.

The key to its success is a positive risk reward ratio of at least 1:2.

Conclusion

The Anti-Martingale strategy is considered to be better than its nemesis the Martingale strategy because it don’t increase your risk exponentially as well as not incurring massive drawdowns.

The Anti-Martingale has the added benefit of not being a suicide bomber and ending your account in a single trade.

Can this be employed with Forex Fury in some way? Let me know what you think.

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