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Martingale Strategy is one of the most popular trading strategies used by traders to overcome previous losses.
However, if you are trading with a Martingale doubling strategy without a piece of proper knowledge you may face a lot of damage. Therefore, In this article, I will be sharing with you the proper guide on how to trade with martingale properly at Olymp Trade.
What is a Martingale Strategy?
Martingale System is the most common Trading System used by Traders to overcome previous losses.
It is said that the Martingale System was designed for betting and was really popular in the 18th Century, France.
This Martingale System was originally developed for a game of gambling in India we call it जुआ. Where the gambler only intention was to cover all the previous losses if any.
If the gambler faces any loss. He will double the amount of bet and play again to cover the previous losses.
It is said that, In 1934, Paul Levy, introduced this system though he didn’t name it.
The name was introduced later by Ville in 1939, he also extended the definition to continuous martingales.
You can easily make some quick bucks from this system. However, you should use this trading system very carefully.
How to Trade?
Understanding the Martingale Strategy is very easy.
Step 1: Write Down the formula
The first and foremost important thing that I would suggest to you is to write the formula.
Martingale Strategy = Invested amount * 2 +1 that’s it!!!
Step 2 : Understand this Example
The best way I can teach you the Martingale Strategy is by an example.
Suppose, you Deposited $100 in your Olymp Trade account.
Now your first Trade is let’s suppose is $1. and you lost that trade.
So, The next trade amount that you will bid will be the Invested amount ($1) *2 + 1 = $3.
Assuming that your next trade is also a loss too…
So, now, your new trade amount will be the Invested amount ($3) *2 + 1 = $7. and you need to keep doubling your trade until you cover up your loss and make some profit.
Stay safe while using this trading system:
The Martingale system is one of the easiest money management strategy. However, this strategy is also one of the riskiest trading strategies that can empty your pockets within the minutes.
Therefore, you should use this strategy very carefully. The best way to stay safe while trading with this strategy is that you fix future loss amount.
Suppose, You fixed that you are going to begin from the start If you are unable to cover up the after four trades. If your first trade amount is $1 your fourth and final trade amount will be $15 and from thereafter you are not going to double your trades. This will not only help you to stay safe but will help you develop financial discipline.
So, I have done my part. I explained everything about Martingale System. By now, you must have understood everything about this trading system and how to stay safe from the same. I will highly suggest you practice this strategy properly in the Olymp Trade demo account and comment your experience below.