The Martingale strategy is actually used as a method in the gambling world with the mindset that just 1 hit can bring back all previous losses and it doesn't matter how many times you have lost.

This is why today betting in casinos has a minimum and a maximum, and playing roulette (rolling the dice around and then falling into the number box) has the numbers 0 and 00, in order to make 50/50 ratio difference.

Today, almost every trader knows EA - Expert Advisor - also known as Robot. This is an automated trading unit that is attached to the chart and connected to our account, trading and making profits on our behalf.

In today's global coder world, there is a very widely used and widely used strategy. Theoretically, this strategy almost guarantees 100% profit. This algorithm dates back to the 18th century and it is based on the theory of probability. With a strong enough amount of money, the success rate of this method is almost absolute.

**What is the Martingale Tactic?**

Martingale was popularized in the 18th century by the French mathematician Paul Pierre Levy. This is a double bet strategy when you lose. Later, the American mathematician Joseph Leo Doob studied it more closely because he wanted to find a way to disprove the 100% probability of this method.

The strategy goes like this: you place 1 bet initially and if you lose, the next time you make a double bet. The passage of time will give you 1 eat and this eat helps to remove all previous losses.

Imagine that gambling is simply a coin toss bet, with a 5/5 chance of winning or losing. The first time bet 1 coin. If lose, lose 1 dong, so bet 2 dong. If you win, you have 2 dong, minus 1 initial loss, you have 1 dong profit. If you lose again, bet 4 dong, if you win, 4 dong profit, minus 3 dong loss of the first 2 times, you still have 1 dong profit. So that continues until there is a win, then return to bet 1 coin.

With just 1 win, you will remove all your losses first and have some profit.

So what's the difficulty here, that's the limit on how much money you have. If you assume you only have 10 coins, then you only lose 4 times. Because the 1st time he lost 1 dong, the 2nd time he lost 2 dong, the 3rd time he lost 4 dong, 7 dong was already gone. The last time, if you bet 3 coins and lose, it will be considered broken. Thus, it takes a lot of money to play like this.

**Applying Martingale to trading**

As mentioned above, many traders and coders today use a money management system - money management - with martingale tactics. This strategy helps to only need to be in the right direction once and hit take profit, all previous stop loss pain will be erased. The game is started again.

The advantage of applying it to trading is that the market, especially trading, has many fluctuations in a day. If the target is only a few dozen pips, the price is very easy to take profit.

In addition, trading using martingale is more favorable than stocks or cfd because there is no bankruptcy in trading, unlike securities there is. Trading applies to the currency of 1 country and if we trade the currencies of the top countries, how can there be bankruptcy.

However, in the current big wave period, the biggest risk for the martingale strategy is the #black swan phenomenon, i.e. events that happen suddenly, strongly and unpredictably. These events cause the price to move sharply to one side with wide spreads. At that time, the super trader was dead, let alone the martingale.

The advice for you to use Martingale is

- Start with the smallest possible volume.
- Get a system that comes with Martingale because Martingale is just a capital management. method. If there is a hard system attached, the loss ratio is only 4/10, it is very beautiful.
- Money in the account must be thick.
- Be careful with the bad broker because when the volume is raised, the broker is easy to push the price to hit the SL to burn the account.

## 0 Comments