Date:Mon Apr 15 2024Tokyo:18:04Sydney:19:04New York:5:04London:10:04CET:11:04

BinaryOptions.net Forums› Binary Options Strategy# When should I use Martingale?

mosesbet
Posts: **12** ✭

Can someone please clarify when it is profitable to use the Martingale strategy (assuming it's used as 1 step Martingale only).

I think I read in Blackjack that if you have any positive win-rate (e.g. 52%+) then Martingale increases your long-term profits and it's +EV (assuming you have the capital to do so).

So in as short and simple an answer as possible, if all trades have an equal 61% probability of winning, will using a 1 step martingale make me more profit then no Margingale at all? Is there any reason or situation where I should use Martingale or avoid it?

For arguments sake, I want to ignore emotional trading and assume all trades are independant (i.e. not doubling up on the same trade in different positions).

Thanks.

I think I read in Blackjack that if you have any positive win-rate (e.g. 52%+) then Martingale increases your long-term profits and it's +EV (assuming you have the capital to do so).

So in as short and simple an answer as possible, if all trades have an equal 61% probability of winning, will using a 1 step martingale make me more profit then no Margingale at all? Is there any reason or situation where I should use Martingale or avoid it?

For arguments sake, I want to ignore emotional trading and assume all trades are independant (i.e. not doubling up on the same trade in different positions).

Thanks.

## Comments

851✭✭✭Hit me up on skype at Brymcafee (McAllen TX)

www.tradingaxis.com

4✭Having said that, if we did assume an ITM of 61%, I don't think a 1-step Martingale offers any mathematical advantage or disadvantage over straight trades. 39% of the time you will be wagering a higher amount. 61% of the time you will win those trades. You may as well just keep it simple and bet higher straight amounts.

Imagine though - you have a bad run and lose most of the martingales. It could lead to inappropriate trading due to emotions. e.g. revenge trading. I wouldn't be surprised in such a scenario that the trader starts taking 2, 3 or 4 (and more) step Martingales, which will most certainly lead to account ruin.

In this example there's a 15.21% change of 2 consecutive losing trades (a losing martingale). A 23.79% change of a losing then a winning trade (a winning martingale). A 37.21% chance of 2 consecutive winning trades.

83✭851✭✭✭Hit me up on skype at Brymcafee (McAllen TX)

www.tradingaxis.com