What is the Martingale tactic?

Martingale was popularized in the 18th century by the French mathematician Paul Pierre Levy. This is a strategy to double bet on losing. Then, the American mathematician Joseph Leo Doob did research more carefully because he wanted to find a way to refute the 100% possibility of winning this method.

The strategy goes like this: you place 1 of your initial bet and if you lose, the next bet will be doubled. As time goes by, you will have 1 meal and this will help you get back all the previous losses.

Think of it as a simple gambling game of coin tossing, with a chance of winning or losing 5/5. The first time you bet 1 dong. If you lose, you lose 1 penny so you bet 2 coins. If you win, then there are 2 coins, minus 1 coin of the initial loss you will have 1 dollar profit. If you lose, then bet 4 VND, if you win, you will gain 4 VND, minus 3 VND of the first 2 losses, you will have a profit of 1 VND. Just keep going until there is a win, then return to bet 1 dong.

Just 1 win, you will remove all your losses first and have a little profit

So what is the difficulty here, it is the limit on the amount of money you have. If you only have 10 coins, then you only lose 4 times. Because the first time the loss is 1 dong, the second has a loss of 2 dongs, the third time, the loss of 4 dongs is already 7 dong. The last time if the bet is always 3 coins and lose, it will be considered out. Thus, it takes a lot of money to play this way.

Apply Martingale to trading

As mentioned above, many traders and coders today use money management systems - with martingale tactics. This strategy helps you just need to be in the right direction once and touch takes profit, all the pain of the previous stop loss will be erased. The game is started again.

The advantage when applying to trading is that the market, especially forex, has many fluctuations in a day. If the target is only a few dozen pips, the price is easy to reach profit-taking.

The advice for you to use Martingale is
  • Start with the smallest volume possible
  • Earn a system that comes with Martingale because Martingale is just a method of capital management. If there is a hard system attached, the odds of losing 4/10 only, it is very beautiful.
  • Money in the account must be thick
  • Be careful with brokers because when the volume is raised, it is easy for Broker to push the price to hit SL for account fire.