{"id":78525,"date":"2015-09-20T16:39:43","date_gmt":"2015-09-20T20:39:43","guid":{"rendered":"http:\/\/countingpips.com\/?p=78525"},"modified":"2015-09-20T16:39:43","modified_gmt":"2015-09-20T20:39:43","slug":"the-secrets-of-the-martingale-system-especially-for-currency-traders","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/09\/the-secrets-of-the-martingale-system-especially-for-currency-traders\/","title":{"rendered":"The Secrets of the Martingale System (Especially for Currency Traders)"},"content":{"rendered":"
September 20, 2015<\/div>
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As many experienced currency traders in the foreign exchange market know, there is a winning strategy called the Martingale System. Many casinos, including the gambling stations in Las Vegas, say that it is 100% profitable, and is actually a challenging yet fun system to employ. However, since it is based on a mean reversion theory, which means that one wrong move can equate to no longer having a good financial future, you\u2019re better off knowing more about it before you jump ship.<\/p>\n

The Martingale System 101<\/strong><\/p>\n

The Martingale System, introduced and developed by mathematicians Paul Pierre Levy and Joseph Leo Doob in the 1900s, has been around for over a century. Since it is focused on the theories of mean reversion and probability, it is considered as a high-risk system.<\/p>\n

The Martingale System takes into account the popular trading approach of \u201cdoubling down\u201d. It starts with an initial bet, and every time that initial bet becomes a loss, the wager is increased. With ample time, a single winning trade makes up for the earlier losses.<\/p>\n

How the System Operates<\/strong><\/p>\n

If you want proof that it is a profitable system, know that the effectiveness of the Martingale System is the chief reason why the wheel of the roulette has 2 markers, in addition to odd\/even bets; it has a 0 marker on one end and a 00 marker on the other. For instance, if you begin betting with 1.805 with the CHF\/USD pair, you can \u201cdouble down\u201d by adding a 0.001 wager with every loss. If you \u201cdoubled down\u201d 10 times, for instance, you can achieve a 1.815 win.<\/p>

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The Martingale System works in the favor of the currency trader since the value of currencies rarely reaches anywhere near 0; a country cannot easily go bankrupt. Also, currencies tend to follow a trend, and usually, trends last a long time. Therefore, if he wins at one point, he\u2019s looking at a streak of wins for a long time.<\/p>\n

The Final Word<\/strong><\/p>\n

The Martingale System may be a profitable system for a currency trader, but he needs to take matters seriously. He has to remember that with the system\u2019s employment, the risk for a loss is far greater than the risk for a win. Granted that he\u2019s extra cautious, and has an infinite (or almost infinite) stream of financial backup, why not give it a try?
\nBy MTrading.ph \u2013 a Forex company from Philippines. <\/i><\/p>\n

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As many experienced currency traders in the foreign exchange market know, there is a winning strategy called the Martingale System. Many casinos, including the gambling stations in Las Vegas, say that it is 100% profitable, and is actually a challenging yet fun system to employ. However, since it is based on a mean reversion theory, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-78525","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/78525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=78525"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/78525\/revisions"}],"predecessor-version":[{"id":78526,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/78525\/revisions\/78526"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=78525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=78525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=78525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}