Martingale Trading Strategy is actively used in various types of gambling, roulette. But it is no longer associated only with questionable money investments, as in slot machines. It is also a tool for making profits in trading. Trade involves a serious approach, the choice of a commercial intermediary, the training and analysis of its activities. In order to improve trading and maximize profits, market participants resort to all sorts of strategies. One of them is the Martingale strategy. The essence of this is to increase the stakes in the market until you make a real profit. This means that if the trade rate fails, it is necessary to double it. And if it turns out to be victorious, the previous loss will be closed with a double profit.
Let’s consider the example. The market participant opens an offer for sale. If you do not play, that is, unlike calculations, you will get a loss, do not close the position. Instead, open another sales quote by doubling the batch. And so trading happens until there is a price reversal and the trader will be able to close the trade at a profit, or make it break-even.
Pros and cons trading strategy
has its positives. Practice says that even if a trader has many losing trades, he will make money. Even if a market participant finds a difficult position with large losses, due to martingale’s continuation strategy, it manages to reach a break-even position and even earn money.
Traders also note serious drawbacks:
Is a fairly complex strategy that is heavily dependent on the volatility of currency pairs, the size of deposits and the amount of the first trading position. To correctly calculate everything, you need to have experience in the market. In order to successfully use martingale strategy, the trader must top up the deposit account for a large sum. It is important to find an effective basic strategy. Only in combination with martingale’s cost-effective strategy can help the trader. It is worth remembering the risks. Working with Martingale’s strategy, the market participant risks about 60%. It is necessary to take a competent approach to trade and to assess their strength soberly.
Market participants should bear in mind that Martingale is more likely to irregularly high results. This means that the strategy should be considered from time to time, not permanently. Try martingale’s demo account strategy to see if it really fits your trading style.
Record Strategy Martingale First appeared magazine for Forex traders forex-for-you.ru.