Martingale (Martingale).

This term can be found in both gambling and forex trading, and there is much debate and discussion surrounding this trading system, but what exactly is Martingale?.

Martingale is a system of capital, money or investment management in which, after losses, the investment amount only increases.

This strategy is closely tied to probability theory, assuming that a trader or player can't consistently make losing trades; luck will eventually turn around.

When applied to casino trading, Martingale is simple: place a bet, lose, increase the bet, and then wait for the outcome. However, when trading on Forex, there are some nuances, which we'll discuss below.

First, it should be noted that Martingale is one of the riskiest Forex strategies, and it's better to use an alternative trading method called Anti-Martingale .

The essence of the Martingale strategy.

As noted earlier, the entire strategy is built on a gradual increase in trade volume. This approach allows for the compensation of previous losses using the profit from the last trade. Therefore, when trading with the Martingale method, two key parameters should be considered: the size of the available deposit and the volume of each subsequent trade.

It's not necessary to double the amount of each subsequent order; it's sufficient to increase its size enough to cover previous losses.

The essence of this strategy can be more clearly understood with a specific example:

the number of trades and the deposit . Your own funds should be distributed so that they are sufficient for at least 4-5 orders.

If you have $100 in your account, then open the first order for $10. If the loss on this order reaches $2, the trade is closed, and a second order is opened taking into account the previous losses, for example, for $12.

After the second trade has also lost $3, we take into account the volumes of the first and second orders, meaning the third order will be for $25.

If desired, you can use a simpler trading system, where you double each subsequent trade. That is, the first order is $10, the second $20, the third $40, and so on. This will make it easier for you to distribute your capital.

Trading direction : all orders are opened in different directions, assuming you simply misjudged the trend the first time and will have better luck this time.

Closing losing positions : Of course, you don't have to lose your entire deposit; each trader sets their own loss level. Typically, it's around 10 to 20 percent of the transaction amount, not the deposit.

The Martingale strategy has a rather questionable effectiveness, but perhaps it will bring you a decent profit in Forex. You can find at http://time-forex.com/strategy