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Risk of Martingale Strategy

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zanurreload

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Basically, the Martingale technique will multiply Lot units (volume trading) under certain conditions, to achieve large profits in a position that is able to cover the total loss from previous losing positions.

The conditions for running the Martingale strategy can be described like this:

    1. If the position wins, keep the initial Lot amount.
    2. If the position is lost, multiply the number of lots in the next trading position.
    3. If the amount of margin that is insufficient is required, use all remaining Margins.
       Repeat steps 1 to 3 until the last position gets a profit, or until the account is unable to open a trading position    again

You really don't need complicated calculations to imagine how high the risk of Martingale is. Only by highlighting Lot's multiplication mechanism, can you imagine that the risk of Martingale's strategy is indeed high. However, increasing the number of lots is tantamount to increasing risk.


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#1 - May 27, 2019, 04:42:34 PM

Kumara

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The martingale strategy in my opinion is quite risky because besides requiring a large margin, traders who are still beginners will have difficulty implementing this strategy.
#2 - May 27, 2019, 04:56:52 PM

joy

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so far I have never seen any specific strategy for the martingale strategy and its MM settings, so many traders lose using this strategy.
#3 - May 27, 2019, 06:51:10 PM

aranku

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I don't like trading with Martingale because it often makes me margin call.
#4 - May 27, 2019, 10:36:01 PM

dunia

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martingale's strategy is indeed quite effective but not in all market conditions this strategy can be carried out, martingale is also a risk strategy because it requires a large margin.
#5 - May 28, 2019, 01:32:10 AM

LiteFx

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it turns out that the martingale strategy can also be safeguarded by risk management, I think such a strategy is a strategy of dying.
#6 - May 28, 2019, 02:54:49 AM

nurdaffa

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The main attraction of the Martingale strategy is the simple premise, that only one winning position is needed to make up for losses from previous losing positions
#7 - May 28, 2019, 03:29:34 AM

ratman

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this kind of strategy is known to be dangerous and indeed we must be experienced in using it, including when to use it and to what extent we use it.
#8 - May 28, 2019, 05:13:33 AM

karim.fz

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I've heard that this martinggle technique is the same as gambling? is that right?
#9 - May 28, 2019, 05:54:36 AM

ani susanti

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Quote from: karim.fz on May 28, 2019, 05:54:36 AM
I've heard that this martinggle technique is the same as gambling? is that right?
Martingale is a trading strategy based on probability theory developed from popular gambling techniques. But the Martingale Strategy can also be applied in forex trading.
#10 - May 28, 2019, 06:34:45 AM

luwak

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Even though the risk of the Martingale strategy is high, there are certain methods for overcoming the burden, including using small lots.
#11 - May 28, 2019, 09:44:20 AM

ibumaria

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Don't trade martingale because it is a dangerous technique
#12 - May 29, 2019, 02:27:52 PM

jagung bakar

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good strategy sir, I appreciate the strategy that you provide.
#13 - May 29, 2019, 04:30:20 PM

tadarus

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in my opinion the martingale technique is the most dangerous technique in forex, so I avoid this technique because it often makes me a margin call
#14 - May 31, 2019, 01:11:32 AM

zanurreload

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Quote from: dunia on May 28, 2019, 01:32:10 AM
martingale's strategy is indeed quite effective but not in all market conditions this strategy can be carried out, martingale is also a risk strategy because it requires a large margin.
IF you want to use martinggale on forex martingale it is better to use in areas that are already saturated or overbough / oversold, and are very suitable for use on the RSI indicator when the rsi is ovrbought / sold, then martinggale is played ... The RSI is usually not too long ... just need the price to turn around just a little, immediately profit and all losses are covered.
#15 - June 02, 2019, 04:30:17 AM
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