Martingale (Martingale).This term can be seen as a game of gambling, and when trading forex around the system of transactions carried out a lot of debate and discussion, but what actually is the Martingale.
Martingale (Martingale) - money management, cash or investments in which, after the receipt of the amount of investment losses is increasing.
This strategy works is closely connected with the theory of probability, it is assumed that the trader or the player can not always enter only losing trades, luck sooner or later will still turn to face him.
If Martingale applies to trade in the casino, everything is simple - put, lost, and increased the rate again waiting for the result of the game. Then at work on forex, there are some nuances, which we'll talk further.
Firstly it should be noted that the Martingale is one of the most risky strategies in the forex and better yet use an alternate version of the so-called trade Antimartingeyl.
The essence of the Martingale strategy.
As previously mentioned, the whole strategy is based on the gradual increase in the volume of transactions, this approach allows to compensate for earlier losses derived from the profits of the last transaction. It should therefore be taken into account two main parameter is the size of the available deposit and the amount of each subsequent transaction when trading martingale.
In this case, it is not necessary to double the amount of each subsequent order is enough to increase its size so that it would overlap the previous losses.
More clearly the essence of this strategy can be understood by way of example -
The number of operations and the deposit - own funds should be allocated so that they would be enough for at least 4-5 orders.
If you have a total bill of $ 100, the first order is open at $ 10. If it losses reached $ 2, the transaction is closed, and the second order has been open to the light of previous losses, for example in the amount of $ 12.
After the second transaction and left at a loss on the $ 3 already take into account the volume of the first and second orders, then there is a third the size of the order is $ 25.
If desired, you can also use a simple trading system, using which you will increase each subsequent transaction twice. That is the first order - $ 10, the second order is $ 20, and the third 40 and so on. In this case, it will be easier to distribute the available capital.
The direction of trade - all orders are opened in different directions, it is assumed that you simply do not have guessed the first time, the direction of the trend and now you have better luck.
Closure of loss-making positions - of course, that the lower the entire deposit is not necessary, each trader sets its own level of losses. Usually it is in the region from 10 to 20 percent of the amount of operation, but do not deposit.
Martingale (Martingale) strategy is quite controversial efficiency, but perhaps for you it will bring a decent profit in the forex.
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