As described in a different article here Martingale is a functionality that can help you to not loose your trade when the market moved into the opposite direction of your opened trade. Please read the respective article for more details.
People tend to use Martingale since it works as a kind of a hedging-functionality, especially if the Revers-Mode is being set. In Revers-Mode Martingale opens a trade in the opposite direction of the original trade in its first escalation stage.
Let's assume that you have set a multiplier of 2.0 for your Martingale function. This means that your "hedge-trade" grows with the double speed compared to the original. The idea behind this is, that the opposite trade should overcome the loss of the original trade very fast and then close both trades with a small profit.
This is the situation when Trailing Stop is OFF.
In case that both functions are switched to ON you will see that the opposite "hedge-trade" generated by Martingale is growing fast, but when it reaches your configured Trailing Stop values, the Trailing Stop will trigger and might take the profit to secure it. That's good on one hand, since you will generate high profits in your account, but also bad on the other hand, since the Trailing Stop kicked your hedge before it has overcome the growing loss of your original trade.
If the market continues to move into the wrong direction (based on your original trade) then Martingale will open another "hedge-trade" automatically that also starts to grow in profit, Trailing Stop kicks in and takes the profit for you, while your original trade still produces Drawdown.
This might loop a few times until either you or the market or the Martingale stopps this behaviour. In other words: You have to be aware that Martingale trades will influence your Trailing Stop, if you have switched both functions to ON.
You need to develop a feeling for the right settings in your strategy before you go live with such a scenario.
Disclaimer:
This is not an instruction manual, but merely an explanation of how the software works. As the manufacturer of the software, we want you as a user to better understand how the software works.
We are not saying that you should use this functionality with real money. Think very carefully about whether you want to use the functionalities mentioned in the text at your own risk and what risk you are taking.
If you decide to use these functions with real money, you should have tried out how the whole functionality works and what can happen with a demo account for a sufficiently long time beforehand. This is the only way to learn to independently assess the real risks and potential profits.
This is absolutely necessary in order to deal with the risk with foresight. As the manufacturer, we accept no liability if money is lost at the broker due to the functions mentioned in the text. The above-mentioned functions of our software offer you excellent opportunities to make profits, but with the acceptance of the risks that the markets always present.
Every PowerScalper license offers one demo and one real trading license to you. This is our contribution to you, so that you can learn to trade riskless as long as you want, before you are using real money.
People tend to use Martingale since it works as a kind of a hedging-functionality, especially if the Revers-Mode is being set. In Revers-Mode Martingale opens a trade in the opposite direction of the original trade in its first escalation stage.
Let's assume that you have set a multiplier of 2.0 for your Martingale function. This means that your "hedge-trade" grows with the double speed compared to the original. The idea behind this is, that the opposite trade should overcome the loss of the original trade very fast and then close both trades with a small profit.
This is the situation when Trailing Stop is OFF.
In case that both functions are switched to ON you will see that the opposite "hedge-trade" generated by Martingale is growing fast, but when it reaches your configured Trailing Stop values, the Trailing Stop will trigger and might take the profit to secure it. That's good on one hand, since you will generate high profits in your account, but also bad on the other hand, since the Trailing Stop kicked your hedge before it has overcome the growing loss of your original trade.
If the market continues to move into the wrong direction (based on your original trade) then Martingale will open another "hedge-trade" automatically that also starts to grow in profit, Trailing Stop kicks in and takes the profit for you, while your original trade still produces Drawdown.
This might loop a few times until either you or the market or the Martingale stopps this behaviour. In other words: You have to be aware that Martingale trades will influence your Trailing Stop, if you have switched both functions to ON.
You need to develop a feeling for the right settings in your strategy before you go live with such a scenario.
Disclaimer:
This is not an instruction manual, but merely an explanation of how the software works. As the manufacturer of the software, we want you as a user to better understand how the software works.
We are not saying that you should use this functionality with real money. Think very carefully about whether you want to use the functionalities mentioned in the text at your own risk and what risk you are taking.
If you decide to use these functions with real money, you should have tried out how the whole functionality works and what can happen with a demo account for a sufficiently long time beforehand. This is the only way to learn to independently assess the real risks and potential profits.
This is absolutely necessary in order to deal with the risk with foresight. As the manufacturer, we accept no liability if money is lost at the broker due to the functions mentioned in the text. The above-mentioned functions of our software offer you excellent opportunities to make profits, but with the acceptance of the risks that the markets always present.
Every PowerScalper license offers one demo and one real trading license to you. This is our contribution to you, so that you can learn to trade riskless as long as you want, before you are using real money.