黑胡子的网格 (Blackbeard's Grid)

Blackbeard is a Martingale variation that I developed that keeps drawdowns extremely low. I do not trade it yet, but wanted to share it to the FF community.

To refresh you on basic Martingale, suppose my TP is 100 pips and my SL is 100 pips with a 1 lot trade. I lose the trade, and now double up on the next trade with 2 lots. I continue doubling after every loss until I either TP or bankrupt my account. Let's look at the drawdown that would occur:

Trade 1: 1 lot -100 DD -100
Trade 2: 2 lots -100 DD -300
Trade 3: 4 lots -100 DD -700
Trade 4: 8 lots -100 DD -1500
etc....



See how lower DDs work with a Martingale Hedge, described here:

http://www.forexfactory.com/showpost...5&postcount=19

As the price moves back and forth across the channel, the drawdown is much lower because only half the floating losing positions can effect your equity at a time. This is because no positions are ever closed until TP.

Trade 1: Long 1 lots -100 DD -100
Trade 2: Short 2 lots -100 DD -200
Trade 3: Long 4 lots -100 DD -500 (note that T2 is not included because it is at 0 when T3 is at -100)
Trade 4: Short 8 lots -100 DD -1000 (note that T1 and T3 are not included because they are at 0 when T4 is at -100)
etc....
described above. The twist to Blackbeard is to have the TP at 200 instead of 100.... Now you can trade the hedge like this:

Trade 1: Long 1 lot -100 DD -100
Trade 2: Short 1.5 lots -100 DD -150
Trade 3: Long 1.25 lots -100 DD -225 (note that T2 is not included because it is at 0 when T3 is at -100)(note that T1 and T3 are not included because they are at 0 when T4 is at -100)