Risk of Martingale Strategy

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.


Linkback: https://www.forex.zone/forex-education/29/risk-of-martingale-strategy/2005/

so far I have never seen any specific strategy for the martingale strategy and its MM settings, so many traders lose using this strategy.

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.

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

I've heard that this martinggle technique is the same as gambling? is that right?

Even though the risk of the Martingale strategy is high, there are certain methods for overcoming the burden, including using small lots.

good strategy sir, I appreciate the strategy that you provide.

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.