Just correcting the three bar martingale strat with four bars as people are getting confused in the other thread
This is the (better) idea
If you get four green/red candles in succession, take a call/put for next (fifth) candle.
If you lose
wait again for next four successive green/red candles and take a call/put for next(fifth) candle with a martingale.
I started working on a strategy similar to this one couple of months ago. When IQ opened their beta bots, i tried making an auto trader for this.
The problem is that if you use martingale you need a very high starting account and a relatively small bet. And even then is not 100% full proof. I thought that the number of consecutives is related to news....well bad luck, with news you have even better chances that this works. I tried to determine what causes waterfalls....still trying to figure it out.
If you use too many candles, you end up with very few trades. If you use too few, you end up with an empty account. So now am considering a different MM, part martingale, part something else...
Let me know if you get more ideas on how we could improve this.