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Martingale Strategy

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Jun 06, 2011 09:59 am
#1
Bee User

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Зарегистрирован: 09/05/2011

In other words it is known as double up and get rich strategy. Even if any of your trade wins, all your previous losses will be covered (looks good).But this is your biggest mistake to trust Martingale strategy. I will give you an example here.

There is either a win or a loss in Forex. So you got 50% chance of winning and 50% chance of loosing. How many times you can invest in a row using Martingale strategy? Lets say 10 times.

Following is one of the unlimited results taken by tossing a coin 100 times (0 and 1 are two sides of coin)

1000011000000101111100011000010100100011001000010101001010000000100000000000011010110010111101001111

So here is a row with 12 "0s" means you can loose 12 trades in a row. In another result I got around 70 "1s".You get different results each time. But the point is that even if 1 row came with more loosing than you can actually handle, it will wipe your whole account. Thats why it is the riskiest strategy. Never use it on your real account.

 

Regards

Bee There is no term like "sufficient money". So aim for a satisfied life.

Jun 06, 2011 02:02 pm
illiterate User

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Зарегистрирован: 21/04/2011

True. A user here emptied his account in just 3 days. Fxstat do not allow martingale users to be signal providers.

https://www.fxstat.com/widget/link?t=medium&c=1&s=25892&o1=growth&o2=drawdown&o3=monthly&o4=equity

Jun 08, 2011 07:45 am
Champ User

Сообщения: 711
Зарегистрирован: 17/05/2011

Thats an interesting article. I have two questions regarding Martingale strategy

1- Are there any versions of Martingale strategy? e.g using it in different ways
2- Martingale strategy is used on high leverage or low leverage?

http://www.fxstat.com/widget/link?t=tiny&c=1&s=24959&o1=growth&o2=drawdown&o3=profitfactor

Jun 08, 2011 04:05 pm

Сообщения: 939
Зарегистрирован: 21/04/2011

There are no versions of Martingale strategy. Martingale strategy is used on high leverage. Martingale strategy is only popular among traders who want to earn maximum amount with minimum effort and this shows an element of excessive greed. Professionals never use or recommend it. As you can see in fxstat rules and regulations that a Martingale strategy user cannot be a signal provider.

Stick to your rules

Jun 15, 2011 05:36 pm
Sasha User

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A question just came to my mind. Does Martingale strategy is a branch of Day trading? Coz both are fast methods of trading. In martingale you do trading on high leverage and same is done in day trading. Day trading can be done in any way. So I was thinking may be martingale is a branch of Day trading.

 

Thanks

Jun 16, 2011 07:13 pm
Bee User

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Зарегистрирован: 09/05/2011

There are different strategies of Forex. Day trading means that a trade is started and exited on the same day. Martingale strategy is something else. There is no connection between them. Martingale strategy is much more riskier than day trading. I have given a short description of Day trading here and I have explained Martingale strategy above. You can search over net for more details to understand more about these strategies.

 

Thankyou

Bee There is no term like "sufficient money". So aim for a satisfied life.

Sep 05, 2011 10:28 pm

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i start a same topic few days ago where some users and me share our experince and other facotrs about this martingle strategy.

http://www.xynafx.com/ Xynafx ... fund managers and forex signal service providers Minimum investment for our Forex managed Account service is $2k that will be managed individually in one investors account. XynaFx signals As low as $26 per Month.

Apr 14, 2012 10:16 am
mrinalini User

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Зарегистрирован: 12/04/2012

Martingale trading strategy is a gamblers way of trading as a trader needs to double his lot size until he wins a trade and each time a trade is lost the lot size is doubled and it can lead to huge losses and one can loose many trades and huge some of money and it is just a gamblers way of trading and requires huge investments.

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