Martingale Strategy
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.
True. A user here emptied his account in just 3 days. Fxstat do not allow martingale users to be signal providers.
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?
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
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
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.
i start a same topic few days ago where some users and me share our experince and other facotrs about this martingle strategy.
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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.