As a result, you will start trading with a good profit. The Martingale method. The martingale method gamers originally used in roulette betting. As you know, you can bet on events that involve only two outcomes, such as black or red, even/odd, and so on. Accordingly, adding a bit of probability theory here, we get the following layout: the probability of red is conditionally ½ (we don't consider zero and double zero).
Suppose we bet $1 on red, and black comes out the first time we spin the wheel. We bet again on red on the second round, but this time on $2, the probability of red falling out is ¾. If black again, on the third round, we bet $4; that is, each new game implies doubling the bet, the probability is constantly increasing. In any case, the profit in the second or the twenty-second round will be $1. The only question is whether there will be enough money for the following position. On the player's side is maths; on the casino's side is setting your own rules, very good falcor forex robot review ea gps forex robot eagles according to which there is a maximum bet; that is, putting a martingale strategy on stream, in this case, will not work.
In trading, the essence is orders are opened at some distance from each other when the price passes against the desired direction. What is the Martingale strategy? How does the Martingale strategy work? The martingale strategy is a popular trading methodology among traders. Almost everyone has used it to some extent or another, sometimes without even knowing that the simple action of averaging and filling a position has a separate name.
Currently, the proportion of robots that use the martingale method as the basis of their algorithm is rapidly increasing, as the methodology itself is pretty simple, and the optimization issue is to filter signals and find optimal entry points. So it is impossible to say unequivocally that the martingale strategy is a way to ruin the deposit because you can extract a lot of profits when approached correctly. But at the same time, if we look at statistics of traders' questioning about loss circumstances, most traders tell us about averaging or using colossal leverage.
However, increasing a position thoughtlessly, albeit gradually, also leads to excessive risks since there is no difference between a single order with total leverage and ten orders, each of which represents a significant part of the deposit. The martingale strategy logic is quite simple - if the price is 100 pips below zero, breaking even will require a return of one hundred pips.
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