Martingale is a theory of probability that allows the management of any future value of certain similarities with the past by using the multiplication principle.
In the Martingale forex trading strategy is a strategy to make a profit at the same time cover the total losses from the previous transactions through the doubling of capital.
Example:
One day you are planning a 5 times the transaction EUR / USD, stoplloss & target profit of 50 points, as well as the initial capital = $ 50,000.
Using multiple lots martingale strategy.
After the transaction the result was four consecutive defeats and only one win in the fifth transaction.
Like this:
The first transaction: 1 lot transaction loss x 50 points = - $ 500
Second transaction: 2 lots transaction loss x 50 points = - $ 1,000
The third transaction: 4 lots transaction loss x 50 points = - $ 2,000
The fourth transaction: 8 lot transaction loss x 50 points = - $ 4,000
Transactions fifth: 16 lots transaction profit x 50 points = $ 8,000 +
So at the end of the transaction the result is:
Total Loss = - $ 7.500
Total Profit = $ 8,000 +
Net Profit / Loss = $ 500
End Capital = $ 50.500
Excess use martingale strategy:
It only takes one win in so (n) transaction, to cover all losses from previous transactions and at the same time reap the benefits.
Disadvantages of using a martingale strategy:
When you are no longer sufficient capital for the next transaction, your loss is immense.
There is also a martingale strategy is called as the 99:1 system. This means that if we use this strategy then 99% of market conditions can make our profit. but if one day we meet conditions 1%, drop our money.
Therefore when you want to use the martingale strategy, then you have to calculate your capital until the transaction durability you want. Thus we can further pursue victory before the last transaction.
In the Martingale forex trading strategy is a strategy to make a profit at the same time cover the total losses from the previous transactions through the doubling of capital.
Example:
One day you are planning a 5 times the transaction EUR / USD, stoplloss & target profit of 50 points, as well as the initial capital = $ 50,000.
Using multiple lots martingale strategy.
After the transaction the result was four consecutive defeats and only one win in the fifth transaction.
Like this:
The first transaction: 1 lot transaction loss x 50 points = - $ 500
Second transaction: 2 lots transaction loss x 50 points = - $ 1,000
The third transaction: 4 lots transaction loss x 50 points = - $ 2,000
The fourth transaction: 8 lot transaction loss x 50 points = - $ 4,000
Transactions fifth: 16 lots transaction profit x 50 points = $ 8,000 +
So at the end of the transaction the result is:
Total Loss = - $ 7.500
Total Profit = $ 8,000 +
Net Profit / Loss = $ 500
End Capital = $ 50.500
Excess use martingale strategy:
It only takes one win in so (n) transaction, to cover all losses from previous transactions and at the same time reap the benefits.
Disadvantages of using a martingale strategy:
When you are no longer sufficient capital for the next transaction, your loss is immense.
There is also a martingale strategy is called as the 99:1 system. This means that if we use this strategy then 99% of market conditions can make our profit. but if one day we meet conditions 1%, drop our money.
Therefore when you want to use the martingale strategy, then you have to calculate your capital until the transaction durability you want. Thus we can further pursue victory before the last transaction.
forex martingale strategy
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