Many traders like to use Martingale/Grid strategy, when the price drop , they increase position, sometimes double lost positions, so the floating negative P/L will be immediately reduced.
They hope the price will go up soon, but is Martingale/Grid good to use ? I afraid not.
you will get very good P/L curve using Martingale/Grid strategy most of the time, but you will always holding negative position, when the market driving crazy, like the OIL future became zero,
your whole balance will be broke.
I suppose using Martingale/Grid strategy is just like taking drugs, the increasing capital paralysis the increasing risks of the heavy nagative positons. Just like a dangerous stair up to the sky,
there’s properly they will drop one day.
Martingale/Grid strategy also relative to the greedy of human nature , people don’t want to lose even one cent in the trade , but they’re facing the possibility of losing all of the money .
Try to stay away of Martingale/Grid Strategies, keep your position volume small when you are not sure about the market movement.
If the market trend does not toward to our position , how to protect your balance ? a great stop loss setting and position management is a must.
we will show how to stop loss best in following articles , also you can follow me and join our channel https://www.mql5.com/en/channels/forexaisignalcom
Thank you and Beset Wishes
3th Sep 2023