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    Trader Senorita's Avatar
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    Martingale For Beginners

    MARTINGALE FOR BEGINNERS

    Attachment 20260

    Introduction: ]
    Attachment 20261
    Martingale strategy have really been one of the oldest method of betting and still popular up to this present times. Where its believed that a punter have to double any losing stake till a win comes out. The name comes from a man named John Henry Martindale, who encouraged punters to stake with this system of bet and it was first introduced to the casino game. The funny part of it all is that this man in question never used this system personally on his own. It's been a lot of years now and many have redefined this system to really suite in their preference to which they can survive and earn with this method.

    However in this article we are going to analyze properly on this martingale system and how good they are for those that will choose to trade with it. Beginners in forex are really looking for the right system and method to which they can develop with so that they can have the proper ability to which they could trade good for themselves and earn for a life time with forex. We all love the idea of success and we have to work hard to at least find that which will really have to work for us more of the time with forex trading.

    What Does Martingale Means For A Beginner

    To set the record straight most beginners must have been tempted to research about this system and have come to understand that in this system one must look to double his stake when loss occurs in repeated means till eventually a win comes up to clear that loss and thus give them a targeted profits. For example if we stake $1 on a trade or bet to win $1 but eventually loose it, on our next trade we must look to stake 2$ to target 4$ profits. Assuming on the 2$ dollar stake we won, we will get a profits of 4$ where 3$ is the amount staked entirely and $1 the actual profits we realized from the run off.

    Attachment 20262

    So for every beginner it's one of the simple terms to understand in this market and know that we double our risk when we make loss and when we win, the cycle continues with the initial stake. So starting off this system we tend to use the lowest funds as possible so as to minimize risk and have the ability to go for a longer term doubling if we managed to see ourselves in a losing streak.

    Does Martingale System Work?

    This have been questions among those who are eager to use this system for themselves and while this system is mathematically possible to give winnings, in the real world it is just another scenario because human have lot of things to deal with ranging from emotions and management. It will be hard for some to control their emotions especially when they start losing in a very long straight in their trade or bet. It's possible for traders and punters to loose 10 -100 times in a row and when the capital is not available to take the doubling of each loss, it means that this system have failed.

    Moreover for this system to work in the real life means having unlimited money supply and unlimited amount of time which we know can't be possible. So it means that for every trader out there they must know that when your loss reaches a stage where your capital equity can't double up your risk in trading, it means you are bound to give up in this system and eventually get frustrated with loss.

    Martingale System Formular

    Attachment 20263

    From the above picture, this is a breakdown of how this martingale system works in practicals. Using the minimum stake of $1 amount for our starting trade.

    *On our first stake we started with $1 and target a profits of $1. After the end of the trade we have a positive trade and end up with a final profit balance of $1

    *On our second trade we stake $1 again and target a profit of $1. After the end of the trade we have a positive trade and end up with a final profits balance of $2

    *On our third trade we stake another $1 and target a profit if $1. After the end of the trade we have a negative trade and end up with a final profit balance of $1

    *Since we have lost, we double up. Then on our fourth trade, we now stake $2 and target a profit of $1. After the end of the trade we have a negative trade and ended up with a final loss balance of -$1

    * Continuing the cycle, we now stake $4 on our fifth trade and a target of $1 profit. After the end of the trade we have a negative trade and ended up with a final loss balance of -$5

    *On the sixth trade, we stake $8 with a target profits of 1$. After the end of the trade we have a positive trade and end up with a final profit balance of $3.

    We could see from this description above that in the martingale system of trade, every loss is growing up in progression yet with a profit target of a little $1.

    THE MARTINGALE IN FOREX TRADING

    Martingale system can be used in forex and that is as a result of doubling our investment in each and every loss. Many experienced traders have always believed that it is bound to work more often for a trader who understand the scope of trading. Meanwhile forex have its advantage as market could trend for a longer time and can always give a trader a good edge to make much more profits with this system.

    Some traders claim that with a good experience about this market, they can come up with a system that won't fail more than five times in a row and so martingale strategy can be a proper approach to such system as they can double their investment and win before a five straight loss. Meanwhile some critiques about this statement believes that the market is unpredictable sometimes and can go as long as making unnecessary sharp moves which could result a trader to loose much more. They note that nothing is guaranteed here and if you must practice this system, you must exhibit caution and money management rules.

    Tips For Successful Martingale System
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    Though this system is popular and have its own risk, I believe that with the right planning and management, a trader can of course use this method to his own advantage and can make sure he trade with the right management always. Forex is risky and no matter how reliable we can boast on our system, we must surely understand that we need proper and adequate management to help ourselves whenever the unexpected could really happen.

    Some tips I will advice traders who wants to use this system of trade are as follows

    1. Always make sure that you invest what you can afford to loose, that way we can bear our loss even if we find ourselves loose our capital.

    2. Demo trade with this system first and see if really you can make success with it before thinking to go for real trading. Practice makes perfect and it helps you understand the kind of risk you are taking while preparing for the real trade.

    3. Don't get too emotional especially on this martingale system because you could go off from your rules and make more risky decisions that could cause you more harm. In essence be patient and discipline with your rules of trade.

    4. While using the martingale system, set your draw downs so that if you reach a point where your loss is the highest you can bear, you could restart the cycle instead of increasing your risk and then loosing your investment.

    5. You can use the anti martingale system of trade which enables you to increase your lot size on each wins and decrease your lot size on each loss.

    What Beginners Must Know About Martingale

    For every newbie out there, you must know that forex trading is very risky and not really easy. You must put in strong effort to learn about this business and know what could work for you. Your decision on this martingale system lies totally on you and you must have to make the best effort to bring out the best into your trading.

    Martingale system might sound very easy but in practicals it's tends to be one of the most hardest method to manage. Emotions and risk management must be put in place and you must know the very rightful time to exit from your trade. Beginners must also try to understand the terms and conditions of their broker because some brokers might have limit in the actual lot size to take and if this is true, it means it could limit your powers to keep doubling your money once you reach a certain stage. This system can be well profitable if it's well managed and can sure be a good means of earning as long as you have a good system.

    CONCLUSION :

    Attachment 20265

    From this article I have been able to take out time to explain in a lay man's view what martingale strategy is all about. For beginners I believe that if they study this article they will have a better clue of this strategy and try to see if it can possibly work out for them. Up till this moment no one will give you full assurance whether the martingale system will work out well for you or not. You will have to practice on it and know how necessary it can help you make profits.

    I personally have tried this system and I have concluded on my own that it works and also does not work. You will have to find your capability on it and know how effectively you could manage it for proper earnings with forex. However we are all here for profits and we have so many method we can a choose from to trade forex. For martingale system, it will always be a system that will never fade or die away. It's been there right from time and as more get aware of this system, they try to modify it in the means if could really work out for them.

    Lastly I believe we have conquered this topic and you could make more research on this method. Once you have tried this system, it's left for you to decide if it works or not or if it's recommended as a sure system in the long run. All these lies on your hands.

    Thank you.

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  2. #31
    Rookie Silhouette's Avatar
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    Quote Originally Posted by layigold View Post
    If what you explained in this thread is what Martingale strategy stands to advocate , I will prefer to do away with it and trade forex in the best way that is convenient for me . Left to me , it is too risky to increase your stake as trades go against you in streak. In fact , when trades go against you , you are expected to reduce your lot size in subsequent trades you would take since your equity power would have been reduced from what it was before . We need to understand the high level of risks involved in forex trading and be very careful on how we manage it .
    Never do margingale technique because it will increase your chance both to get higher profits and losses as well. Increasing risks to trade isn't always a good idea to do beside we can increase our profitability without it too. Another solution for that is to patience in waiting. We still can trade safely with small risk but get more profits unless we can wait to hold our trades in long term. This is way better than doing martingale.

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    Registered user ara's Avatar
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    Quote Originally Posted by Senorita View Post
    I personally have tried this system and I have concluded on my own that it works and also does not work. You will have to find your capability on it and know how effectively you could manage it for proper earnings with forex. However we are all here for profits and we have so many method we can a choose from to trade forex. For martingale system, it will always be a system that will never fade or die away. It's been there right from time and as more get aware of this system, they try to modify it in the means if could really work out for them.

    Lastly I believe we have conquered this topic and you could make more research on this method. Once you have tried this system, it's left for you to decide if it works or not or if it's recommended as a sure system in the long run. All these lies on your hands.

    Thank you.
    I think martingale is less suitable for beginners, especially for those who have unstable emotions. I also often use martingale strategies in some circumstances, but I know the limits and don't want to violate the rules of risk restrictions from this martingale.

    The only way for martingale to work properly is by doing backtest for our strategy, the main problem of martingale is when we get loss in a row, there is no other problem besides that. Suppose we have a trading system with 70% winning rates out of 10 total trades, then the possibility of loss in a row is 3 trades, so we have to prepare equity for 3 trades in martingale. However that does not apply if we take 100 sample backtest, because there is a chance we get 30 loss in a row, although in fact we can analyze through backtest.

    But forex is an art, here we can combine our idea, because basically there are 2 ways to increase profit in forex:
    1. Increase the lot size
    2. Increase the target point (pips).
    And these two possibilities can be combined with the martingale system to reduce risk and psychological pressure.

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    Rookie Yayami's Avatar
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    Quote Originally Posted by ara View Post
    But forex is an art, here we can combine our idea, because basically there are 2 ways to increase profit in forex:
    1. Increase the lot size
    2. Increase the target point (pips).
    And these two possibilities can be combined with the martingale system to reduce risk and psychological pressure.
    trade with martingale has its own benefits but then we don't have to increase our target because the more lot size we open, that should do the target into bigger. only do this when we're sure about our analysis and market is moving by following our trades as our expectation. in order to make a stable martingale, we must able to trade by following market strong trend which this knowledge won't be learned for beginners.

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    Rookie layigold's Avatar
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    If what Martingale strategy teaches is to increase lot size when there is loss with a view of quick recovery , then this kind of strategy is not meant for me . I prefer to stay at the opposite side , if there is any time a trader must reduce the risk of trading , it is when he faces loss in trading .Loss recovery is never accomplished by adding more lot size but by being careful so that one would not find himself reacting to the market because of loss As a trader, I have learned to accept loss as part of what is being faced in trading and the best thing is to learn from the loss and avoid a repeat of past mistakes

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    Martingale is very profitable in sideways market. The main idea is that market returns back to average price. There are many forex robots working with Martingale strategy and they are very profitable till one time they lose everything when trend starts. Trader using Martingale must take profits everyday and know that account will be lost one time.

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    Rookie Silhouette's Avatar
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    Quote Originally Posted by Krosneles View Post
    Martingale is very profitable in sideways market. The main idea is that market returns back to average price. There are many forex robots working with Martingale strategy and they are very profitable till one time they lose everything when trend starts. Trader using Martingale must take profits everyday and know that account will be lost one time.
    Couple times got myself stop out because or martingale system and the way I calculate my risk is bit complicated to do. Since then, I never intend to trade with martingale system anymore and focus on the consistency of trading with my trading plan without adding another trades to my account. Once my plan has been set with some value of risk to reward, I'll stick to it.

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    Rookie layigold's Avatar
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    Quote Originally Posted by Senorita View Post
    What Does Martingale Means For A Beginner

    To set the record straight most beginners must have been tempted to research about this system and have come to understand that in this system one must look to double his stake when loss occurs in repeated means till eventually a win comes up to clear that loss and thus give them a targeted profits. For example if we stake $1 on a trade or bet to win $1 but eventually loose it, on our next trade we must look to stake 2$ to target 4$ profits. Assuming on the 2$ dollar stake we won, we will get a profits of 4$ where 3$ is the amount staked entirely and $1 the actual profits we realized from the run off.
    If what is said above is what Martingale trading strategy stands for , I will never move near such a concept or strategy because a trader under normal situation should reduce the volume of his transaction as he records loss. Increasing the lot size in subsequent trading after making loss could spell a doom for trading account and that is why much emphasize is placed on risk and money management in forex trading . If that system works in a betting which dies not run on any leverage , I doubt much if it will ever work in forex , that is just my own opinion

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    Rookie Toyen's Avatar
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    It is so strange for me to see this thread for the first time ever since i have being posting on this section of the forum. All i can advice the new traders about the martingale trading system is for them to avoid it totally, that trading system is bad, it will only perish the whole capital of the new trader. Traders which are new can test it as explained on the demo account, they will know that it will never work for them.

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    Rookie Sascha's Avatar
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    Quote Originally Posted by Toyen View Post
    It is so strange for me to see this thread for the first time ever since i have being posting on this section of the forum. All i can advice the new traders about the martingale trading system is for them to avoid it totally, that trading system is bad, it will only perish the whole capital of the new trader. Traders which are new can test it as explained on the demo account, they will know that it will never work for them.
    someone must've brought this thread back to the ground once again by posting a new update where other members are doing the same until you and i see this thread again. i thought the same as yours and this one's created in 2017 and posted in last 2018. well then, since it's about martingale system then i think we know it's necessary for some of us who wants to increase the risk and reward. we can do this when our strategy provides us more support with accuracy and help us with sure winning.

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  11. #40
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    Quote Originally Posted by Sascha View Post
    someone must've brought this thread back to the ground once again by posting a new update where other members are doing the same until you and i see this thread again. i thought the same as yours and this one's created in 2017 and posted in last 2018. well then, since it's about martingale system then i think we know it's necessary for some of us who wants to increase the risk and reward. we can do this when our strategy provides us more support with accuracy and help us with sure winning.
    accuracy of trading is not easy if we have very big experience then we can say we are good trader and can trade with some accurate orders but still this is not easy and simple. for some proper trading we must need of experience we must need to know about market as well. risk can be increased automatically when we do not have good experience and patience

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