What is martingale trading strategy?

The Martingale trading strategy is one of the opaque trading strategies that sophisticated traders use. The idea behind it started hundreds ago when a French mathematician proposed it. The mathematician was later awarded a major award for his work in the mathematical field of probability.

What is the anti-martingale strategy?

The anti-martingale strategy is the opposite of the martingale that we have explained above. Instead of adding the size of trades, it involves halving the bet each time when you make a loss. After doing that, you double the size whenever you make a loss. Analysts believe that it is a safer option.

What is the martingale system?

The Martingale System (also known as the Martingale Strategy) is a risk-seeking method of investing. The main idea behind the Martingale System is that statistically, you cannot lose all of the time, and thus you should increase the amount allocated in investments—even if they are declining in value—in anticipation of a future increase.

What happens if you lose a martingale trade?

Therefore, in the Martingale trading strategy, after losing, you should double your trade and hope that you will win. If you lose again, you double the size of the trade and so on. As such, if the fifth trade wins, it will mostly cover the previous losses and make you profitable.