Martingale Strategy on MarketsWorld
amsmith
Posts: 2 ✭
I'm new to binary options and just started trading with MarketsWorld. As most of you probably know they have payouts of 70%, less than I would hope for, but as I am a US citizen I much prefer this platform to Nadex's. I have a basic math question with regard to using the Martingale strategy with this 70% payout; how much do I need to raise my stake by after each loss in order to be profitable at the end of any given losing streak?
Comments
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You should NOT use Martingale. It's a gambling no-good-strategy made by brokers to make you lose money fast.amsmith said:I'm new to binary options and just started trading with MarketsWorld. As most of you probably know they have payouts of 70%, less than I would hope for, but as I am a US citizen I much prefer this platform to Nadex's. I have a basic math question with regard to using the Martingale strategy with this 70% payout; how much do I need to raise my stake by after each loss in order to be profitable at the end of any given losing streak?
That is not proper money management and only beginners with no knowledge would ever touch Martingale. -
I appreciate your concern but I fully understand what catastrophic downsides using the Martingale strategy could entail. However I think if given very low initial stakes ($1 - $5) and utilizing a certain cutoff point (i.e. cutting losses after 4 or 5 consecutive losing bets), Martingale could be a viable and effective strategy. Using proven and effective indicators along with this method furthers its plausibility. I may be new to Binary but I've done plenty of research and can clearly see that the name of the game is limiting exposure and minimizing losses. I am in no way suggesting to use the Martingale strategy blindly or without moderation.
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Hello ams,
Should your martingaling not workout longer term, you may wish to try and just focus on better entries, or try dollar-cost-averaging. The other option is a systemic martingale spread across pairs and not on 1 particular currency move, in theory this can work as long as you cap the sequence to 2-3.
In general, however, martingaling is highly frowned upon mainly because it works for a bit and then one fine day, account blown!
Team BSBBlue Sky Binary - Research, Education & Technology. Signal Hive - The No.1 Binary Signals Marketplace. -
In general I don't advise to use this strategy. Sooner or later you'll end up losing your deposit. It's not a casino... there are many other working strategies, use them.
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I would not recommend this strategy if you are novice at binary options trading.
