Trading Martingale system

Trading Martingale system - based on the popular system of betting in France of the XVIII century. The main principle of this system - it is doubling bets after every loss, so if you win (get your rate plus 100% return), you up for all the losses and also earn the amount of the initial bet. If someone had an infinite amount of money, this strategy would be a win-win option, since the probability of an infinite number of bets to win in one of the outcomes would be equal to 1. The problem is that no one trader is not an infinite amount of money and, therefore, this strategy leads only to spend the entire deposit. And, although this strategy is very popular among forex traders and is used in many paid expert advisor forex market, I strongly recommend against using it.

Features

• Theoretically, a win-win system.
• Practically useless.
• Relation to the rate of gain may reach very low levels.
  

How to trade?

1. Any currency pair and timeframe suitable.
2. Determine the size of the starting position.
3. Place an order in a random direction (buy or sell) a fixed stop loss and exactly the same take-profit.
4. After the SL or TP will work, or you win or lose.
5. If you win, set the size of the position is the same as was at first and then proceed to step number 3.
6. If you lose, double the size of the position and go to step number 3.
7. If you have an infinite trading account balance, eventually you'll increase it. If your balance is limited, then eventually you will lose it.
   

Example

For this trading system is an example of a graph, since it is not needed. Examine the following example using the strategy:

1. You start with a score of 10 000 $ and can trade minilotami (0.1 standard lot, and you decide to sell the pair EUR / USD.
2. You specify the initial position size as a 0.1 unit.
3. You decide to enter a long position with stop loss 40 pips (or $ 4). Take-profit also set 40 pips.
4. You lose a position. Now your balance - $ 9996.
5. You double your starting position of 0.2 lot, so that, using the same stop-loss and take profit, you are risking $ 8 and has a chance to win $ 8. You decide to change the direction of the short position.
6. You win and restore lost $ 4, and win another $ 4. Now your balance - $ 10 004.
7. You return to the original position size 0.1 lot and continue on.
8. On the balance of $ 10 000 and a base amount of the risk of $ 4, you have to lose 11 positions in a row to lose everything. You have to win the 250 items, to double its balance sheet.
   

Attention!

Use this strategy at your own risk. EarnForex.com not responsible for any damages that may result to you when using any strategy presented on the site. It is not recommended to use this strategy on a real account without testing it to start a demo account.