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Martingale Strategy | Meaning | Theory | Calculator | Roulette | Options | Forex

(Last Updated On: October 27, 2021)

Hello… how are you?

Today in this article. I am going to talk about one of the most famous trading strategies i.e Martingale Strategy.

This strategy is one of the oldest and proven trading strategies used by traders. and you can easily make some quick bucks out of it If you follow this strategy properly.

In this article, I will also cover the What is Martingale?, Martingale theory, Doubling strategy & more

So, keep reading ahead Martingale System, Martingale Strategy Trading, Martingale Strategy calculator & more.

What is Martingale System?

The Martingale system also known as the roulette strategy is one of the most famous trading strategies that came into existence in the 18th century.

This Strategy was developed by french mathematician Paul Lévy

It was originally developed from roulette betting where the bets will get doubled in order to cover the previous losses.

It is to be noted that the Martingale strategy is also the riskiest trading strategy.

Therefore, The experts have always suggested using this strategy after a proper practice.

Martingale Strategy Trading

Here, To illustrate Martingale strategy. I am going to use Olymp Trade.

In case you don’t have an Olymp Trade account. click here.

You can also sign up via the form given below.

You can sign up here try….

Once, you click the link above you will land on the Olymp Trade homepage.

Firstly, click on register.

Now, enter your email, password, & hit sign up.

Once you have signed up. You will land on the Olymp Trade dashboard.

 

Firstly, click on the chart button and select Japanese candlestick from the menu.

That’s it!! The basic setup is over.

Now, what we need to do is select an asset. Here, I select Brent and we need to analyse the market and trade accordingly.

 

If our previous trade results in a loss then we need to double our trade amount in order to cover our previous losses.

 

Martingale Strategy

Trading with Martingale Strategy is very easy. You just need to remember the Martingale strategy formula:

Martingale Strategy =  Invested amount * 2 +1

Let’s check a few examples:

 

Given above is a bitcoin chart and suppose, according to our analysis the market will go up So, here we take a buy trade with $10 investment.

But, later our trade results in Loss.

Now, what we need to do is follow the Martingale Strategy formula i.e Invested amount * 2 +1 in order to cover the previous loss ($10).

Here, $10 * 2 + 1 = 21 will be your next investment amount.

Similarly, Suppose our next trade also results in a Loss.

Now, what you need to do is follow the Martingale Strategy formula again i.e Invested amount * 2 +1 in order to cover the previous loss.

Here, $21 * 2 + 1 = 43 will be your next investment amount.

We need to follow the process until our trade results in profit.

However, We should be very careful while following this strategy and use a proper money management to overcome the loss.

 

Final Point:

Martingale System is one of the most famous trading systems that came into existence in the 18th century.

This Strategy was developed by french mathematician Paul Lévy

This strategy has been derived from the roulette strategy where you need to double your investment amount in order to cover your previous loss.

Trading with Martingale Strategy is very easy. You just need to remember the Martingale formula:

Martingale Strategy =  Invested amount * 2 +1.

You need to follow this strategy until you have overcome the loss.

But as I said earlier you should always use proper money management while using the strategy.

This is end of this article I hope you have found this article helpful.

This article was all about Forex Martingale, Martingale binary option, Martingale trading, Martingale examples & more

 

 

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