Double your winning Not your losses. This is the motivation behind the design of this potential very powerful semi-automated Expert Advisor.
Unlike the Casino generated ‘Martingale’ Trading strategy where a bet / trade is doubled each time a loss is en-cured with the sole intention of eventually taking all of your money and wiping out your account, because our biggest weakness as human beings is the psychological pressure of never wanting to loose. Inevitably the house always wins.
The Martingale strategy works like so:
You bet $10 & you loose. Your next bet is then $20 & you loose.. and so on. You keep on going with this algorithm in the hope that eventually the odds favour your persistence and eventually win… Fact is you don’t.
$10 loss / $20 loss / $40 loss / $80 Win !!!
$10 + $20 + $40 = $70 Total profit = $10 🙁
You’ve just risked $70 of your hard earning to win just $10 !
BAD MONEY MANAGMENT !!!
Now let revers this logic the Vdubus way! 🙂
DOUBLE YOUR WINNINGS NOT YOUR LOSSES !
$10 win / $20 win / $40 win = $80
$10 + $20 + $40 = $70 Total Risk = $10
No matter how many levels you only ever risk your initial Bet / Trade entry of $10
Awesome Money Management
Each trade level set by the Compound money management EA represents a risk / reward ratio of 1 to 1.
Each level is then compound assuming that you won the previous trade level… and so on.
As each level rises similar to a trailing stop, so does your stoploss.
In the event of a loss then the EA is coded to automatically close all othe entries.
The User using the Compound Money management trade panel has customisable option to which he/she can control risk, number of entry levels and and option trailing stop perfect for protecting pull-backs should you require it.