Any trader’s dream is a trading strategy, which gives a guarantee of success, if not 100%, then at least 99.99%. Of course, at first glance, it looks absolutely unbelievable. But if you study the possibilities of the Forex market more carefully, you can find quite convincing evidence of the existence of such a strategy. And having deepened into the history of exchange trading, each trader can find quite significant evidence that it works. And the name of this economic miracle is Martingeil’s strategy.
What is the basis for almost no-lose exchange trading? Strange as it may seem – the theory of probability, the one that promises victory to gambling fans and allows you to build the most unusual assumptions. It is the basis for the work of totalizators in the world of sports. It’s used by the luckiest forex traders. And millions of people every day are convinced that Martingale’s strategy is bearing fruit.
How do you play without losing? The optimal solution is a trading plan that allows you to “keep abreast” of your investment. But even the most risk-free transactions do not guarantee success in case of significant market fluctuations. Is it possible to get the desired result with 100% probability? Martingale’s method doesn’t answer that question. On the other hand, it relieves the trader of the main problem – the need to make assumptions and analyze the market situation. After all, in fact, this trading strategy is based on the same principle as the bets in a casino or betting game: sooner or later, the “zero” falls on absolutely any roulette wheel. Accordingly, choosing a certain line of conduct for yourself, we can safely say that the “bet” sooner or later will play. The main thing is that by the time you’re lucky, the amount of losses does not exceed the size of the loss.
As a matter of fact, Martingale’s strategy is the basics of trading. It is with her that you should begin to get acquainted with high-risk methods of currency trading. But here it’s important to remember the golden rule of probability theory: you have to be ready to continue the game no matter what happens. Simply put, even if you lose your deposit, you should strive to maintain your chosen strategy of the game. You must be prepared to spend. Otherwise, you shouldn’t start.
Martingale’s strategy: how does it work
For the first time the principle of the Martingale method was applied in practice in the XVIII century. Quite quickly he gained popularity among gamblers in a variety of risky investment areas – from betting to stock trading. The principle of the strategy is simple: in case of losing the initial bet, each subsequent bet should be twice as large as the previous one. That is, the player in any case gets a chance to cover all losses with one win. But, unfortunately, the more chances there are in the game, the less chance that the Martingale method will work quite effectively.
Let’s give an illustrative example: winning roulette by betting on a specific number is not an example more difficult than betting on red/black or odd. Simply put, it is much easier to succeed when the odds are distributed in a 1:1 ratio than when the ratio is 1:10 or 1:100. In this case, each losing trade should be considered as a step towards success. The only deal that could bring the expected profit.
Martingale on Forex: The secret to success
For an inexperienced trader, a long period of failures may look like a reason to change the trading strategy. More experienced participants of the Forex market know that currency rates do not make chaotic movements – their growth and decline are always subject to certain laws and depend on trends that determine the current direction of price values. Accordingly, prolonged trading at a loss most often indicates that you are holding a position against the current trend. What can Martingeyle’s strategy do in this situation?
For example, let’s consider the EUR/USD pair, the price of which moves down. The trader, on the other hand, is playing for a rise from 1.2620 to 1.2630. What would the Martingeyle method do in this case? With each subsequent decline in the rate trader has to add lots to minimize the risks. This dynamics can be easily traced on the charts in a special section of the website brokers.ru. But do not forget that each added lot in this case plays into the hands of the trader, reducing the size of the average entry price to the market. And each subsequent deal will in any case serve as another step on the road to success. The main thing is not to stop at half the road. And that’s probably where Martingeil’s tricks lie.
After all, it is not just psychologically difficult – it is almost unbearable – to continue moving in a knowingly unprofitable direction. And the realization that even after you have emptied your deposit, you will have to find the means to continue moving in the chosen direction seems incredibly stupid. Actually, it’s exactly the opposite. After all, the main thing in Martingale’s strategy is the ability to wait. And if you calculate everything correctly, sooner or later the target will be achieved. And the profit earned will more than cover all the losses on the transactions.
Where else do they use this method today? Initially, the Martingale strategy was based on the principles of probability theory. And where else, but not in binary options, this principle today works at 100%. So why not choose this method of planning trader’s actions? Moreover, in the case of options, although it does not bring huge profits, but makes the game almost a win-win situation. Of course, if a trader has the necessary resources to continue playing even after a series of losses. But even if we are lucky, we should not forget that Martingale is one of the most risky strategies. It should only be used if you are really ready to go to the end.