### Martingale forex system

If he uses a classical martingale system he will be either always buying or always selling. It's not impossible that a currency could reach zero, but what it would take for this to happen would be an global economic nightmare. In Forex the probabilities are not linear, so the streaks can have some inner logic dependent on markets. Martingale system was very popular in 18th century, but it still remains popular, despite its obvious and very important disadvantage. The key with martingale, when applied to trading, is that by "doubling down" you essentially lower your average entry price. In other words, they would buy a currency with a high interest rate and earn that interest while, at the same time, selling a currency with a low interest rate. Trading Application of Martingale Strategy You may think that the long string of losses, such as in the above example, would represent unusually bad luck. If the price decides to reverse after all, we shall be able to close all our positions and break even or even get some profit: So, martingale creates an illusion that you can avoid making losing trades. Orders that have an increased lot size, and which amount is equal to the number of losing trades. If we ride a long-sustained trend, we can lose our entire deposit.

#### How the, martingale manual system is usually applied

These mini-elements will help to enhance its profitability and reduce a moral load on a trader. However, let's consider what happens when you hit a losing streak: Your Bet Wager Flip Results Profit/Loss Account Equity Heads 1 Tails (1) martingale forex system 9 Heads 2 Tails (2) 7 Heads 4 Tails (4) 3 Heads 3 Tails. How it will look like in practice? In theory, it all seems to be a funny and a profitable game. By doing so, we can make ourselves safe from huge losses. Besides, we need to find not the maximum, but the average amount of losing trades over the entire period of testing. If the roulette doesnt hit red again, then you should bet 8, 16 and so on, until you get a win. To understand the basics behind the martingale strategy, let's look at an example.