Martingale method: a dangerous but effective method of money management. Martingale financial strategy (catch-up) Martingale table for binary options

Many people have heard about the use of these two methods in trading, but not everyone knows what exactly they are. Meanwhile, every trader should have an idea of ​​what the Martingale method and the anti-Martingale method are. Both of these methods are described below, with specific examples of their use.

The Martingale method originated as a betting system for playing roulette. The essence of the method is to always end up winning by raising the bet in case of a loss. Let's take a closer look at the betting system using the Martingale method.

For ease of calculation, we will take the base rate equal to one ruble. When playing using this method, you first bet one ruble, then if you lose, you double the bet, and if you win, you return to the base bet size - one ruble.

Let's say you bet one ruble on red and lost, then your next bet is two rubles. If you lost two rubles, bet four and so on until the first win, after which you again bet one ruble.

Thus, for each win, your capital will increase by the size of the base bet (in our case, by one ruble). This can be easily verified by simple arithmetic calculations:

Let's say we have a chain of two losses and one win.

2nd bet – 2 rubles – loss

3rd bet – 4 rubles – win

Loss: 1+2=3 rubles

Winning: 4 rubles

Profit: 4-3=1 ruble

You can make similar calculations for any sequence of losses and wins and make sure that the final profit after each next win will be equal to the size of the base bet (in our case, one ruble).

But the size of the bet after each successive loss, on the contrary, will increase. Moreover, it will grow exponentially.

There is an old parable about a cunning mathematician and a greedy ruler. The essence of this parable is that the ruler urgently needed the help of a mathematician, but he absolutely did not want to pay him. They bargained for a long time until the mathematician proposed the following calculation scheme. He went to the chess table that stood nearby, removed all the pieces from it and put one grain of rice on the first square. Then he invited the ruler to fill the entire board with rice in such a way that he had to put two grains on the second square, four on the third, and so on, constantly doubling the number of grains for each new square. The mathematician called this amount of rice the price for his service, but the ruler, without thinking twice, hastened to agree to such a meager price, from his point of view. However, when the time came for the calculation, it became clear that the amount of rice that would fill the chessboard according to the above scheme is unlikely to be found in the whole world*.

I don’t know how the heroes of the parable ultimately solved their problem, however, in the context of this article something else is important. It is important to understand how small numbers reach astronomical values ​​through a simple geometric progression.

So, what do we have when we apply the Martingale method in practice? The probability of winning is many times higher than the probability of losing. But the size of this winning is tiny compared to the size that bets reach after several losses in a row. When placing bets using the Martingale method, sooner or later you will encounter a situation where a chain of continuous losses will lead to the size of the bet growing to the size of your entire capital (and all this for the sake of winning 1 ruble). Thus, you will inevitably lose everything, provided that you are psychologically able to withstand the process of increasing bets on a long chain of losses (and the probability of such a chain occurring is greater, the more bets you make).

Antimartingale method

In contrast to the Martingale method, there is the Anti-Martingale method. Its essence is to increase bets after each win and return to the base bet in case of loss.

Let’s say we have a chain of two losses and three wins with a cutoff of profit after three wins in a row.

1st bet – 1 ruble – loss

2nd bet – 1 ruble – loss

3rd bet – 1 ruble – win

4th bet – 2 rubles – win

5th bet – 4 rubles – win

Loss: 1+1=2 rubles

Winning: 1+2+4=7 rubles

Profit: 7-2=5 rubles

When using this method, it is necessary to set a limit for increasing the size of the bet (the so-called profit cutoff). For example, return the bet size to the base size after every three or, for example, five wins in a row. Without these cut-offs, the method will not make sense, since there are no endless chains of winnings, and the very first loss will reset all earned profit, and you will constantly return to the “broken trough”.

conclusions

In principle, it is possible to use the Anti-Martingale method or its modifications when playing on the stock exchange, at least it will not allow you to quickly lose to smithereens**. But using the Martingale method when playing on the stock exchange or Forex market is strictly not recommended.

*For fun, you can play around with a calculator and calculate the number of grains of rice needed by the ruler to pay the mathematician.

**However, of course, you can make money, the main thing is to approach the creation of your own system based on the Anti-Martingale method correctly and wisely.

Many of the “chips” that are used today for trading binary options migrated from Forex trading. The Martingale strategy is no exception.

Many novice traders, having learned that the Martingale trading strategy for binary options does not require specific analytical skills, pay attention to it and want to make money using this win-win method.

Martingale strategy for binary options trading

The Martingale strategy involves doubling the investment amount after a losing trade.

First of all, we note that standard doubling on binary options does not work.

The fact is that in these contracts, if successful, you do not receive 100% of the profit, but only 60-90%. Accordingly, it is necessary to plan the calculation of transactions somewhat differently; the Martingale strategy in binary options has been slightly modified to suit the local trading conditions.

Let's give a simple example. For clarity, let’s take the first investment of size 10 $. The contract yield is 80% .

• So, a trader buys an option with a growth forecast and the first trade turns out to be unprofitable. He loses 10 dollars.
• The size of the second investment is $20. This deal is also not profitable..
• The next trade is $40. It also turns out to be unprofitable.
• Next - 80 dollars. The deal is also not profitable.

The total loss is already $150.

• The volume of the next transaction is $160. She finally turns out profitable. But it won't bring you joy.

The fact is that the profit on this transaction will be only $128(80% of US$160). At the same time, our current loss is already $150 (after the last unsuccessful trade). What happens? The net loss for the martingale cycle was 22 dollars.

It turns out that the Martingale strategy does not work on binary options?

In the classic version it really doesn't work. But the thing is, you don't have to stick to the classic standard. The essence of working with this technique is to make a profit, and not to strictly follow the classical doctrine of the system. This means that you can independently develop your own coefficient system, which will allow you to overcome the obstacle that is created by the reduced profitability in binary options. Of course, in this case, it will no longer be the Martingale that we all know. But if the new system brings in income, then why not?

Depending on the profitability, you can increase the volume of the second transaction not by two, but by 2.2 times, for example.

There are many both real and pseudo-strategies on how you can make money in a casino or on Forex, how to successfully trade binary options and hit the jackpot at roulette. One way or another, people have always strived to develop some working strategies for making a profit without much effort. Gambling has always been a very attractive area. In them, you can really seriously increase your fortune in the shortest possible time (or, on the contrary, lose it).

Excitement has been inherent in us for a long time...

Since time immemorial, when mankind already knew games with a random outcome (for example, “Heads-Tails”, “Over-Under”), people began to place bets. We know that gambling itself dates back hundreds, if not thousands, of years earlier. This desire to take risks and win (or lose) is explained by human nature. It always seems to us that this is our chance, that now we will hit our jackpot and become fabulously rich. The entire gambling industry operating today exists on the basis of such an illusion. And due to this feeling inherent in all people, casino owners receive incredible income.

How to guess?

Knowing that one successful outcome of a game for money can make them fabulously rich, people have always tried to somehow predict what will happen in the end. Some relied on their intuition, while others created various strategies and tactics for the game. With their help, it was supposedly possible to get rich if you “deceived” the casino, luring it out of all the money.

Such desires were inherent in all players, but hardly anyone managed to achieve such a result. It's all about the special protection methods that gambling establishments use. Even online gambling services today have special algorithms that do not allow you to somehow “adapt” to the game and start winning in it all the time. Due to this, in principle, gambling sites and real gambling establishments exist - people come to them, hope to win something and leave with nothing. It has always been so and so it will be - nothing changes in this area.

Betting system

At the same time, the desire to get rich with the help of casino winnings is inherent in all gambling lovers. Therefore, each of them (and probably you too) have thought more than once about how to develop some special winning strategy. After all, if you watch some feature films, you can see how another daredevil calculates the algorithms for issuing cards at the table and thus wins a million dollar jackpot. The explanation is simple - it generates its own, which allows you to guess the next combination.

Is this really possible in our lives? Let's find out together!

In this article we will present material about what the Martingale system is. Why is it called that, what is it, where is it used?

Martingale method

First, let's explain the name. It seems at first glance that this system was named after a certain Mr. Martingale. Our imagination pictures a cunning gentleman living in the 18th century who manages to outplay all the gamblers and ultimately earn a fortune with his winnings. However, is this really possible?

Let us characterize what this technique offers the player, and perhaps you will understand everything yourself.

Meaning

So, the method is tritely simple: the player is offered to place bets according to a certain algorithm. It will be clearer if we explain with an example. Let's take the famous game “Roulette”. The player's task is to guess what number/color will appear in the next game.

You set a minimum bet for yourself (for example, 100 rubles) and place it on one of the options (for example, on “black”). If you win, you receive twice the amount (200 rubles), after which you make the same bet (100 rubles), but on the opposite option (now on “red”). While you receive a prize and guess the color, you should follow the same logic and simply bet your 100 rubles one by one.

If you lose, you need to repeat the bet on the “losing” option, doubling it. Let’s say you bet 100 rubles on “black”, but lost money, and now you bet 200 rubles. again to the same color. If you are unlucky again, no problem, make a contribution of 400 rubles and repeat the action. Thus, the user must double the amount he bets.

Designed just for the final “exit in plus”. Double the winnings due to the constant growth of our bet will cover all losses.

It even got to the point that this strategy is described on various information sites as one that can work an infinite number of times. For example, advertising portals post information about the supposed opportunity to earn $300-500 a day using such tactics. True, all these sites, as well as the theory of such a game, are pure deception.

Break-even

As you can read on various Internet sites, the Martingale system is ideal. There are a lot of opinions indicating that people allegedly really make a profit in this way. It is enough, for example, to “fill” $100 into your casino account and wait until the funds are credited to it. After that, start playing.

There is no need to particularly understand which color to bet on. In reality, there is no difference in what exactly you choose the first time. It is much more important, according to people, to adhere to the above double boost system, through which you can make a profit. The main thing is to simply “level up” until you win.

Inconsistencies

This topic has become very popular with the development of the modern Internet and new technologies, as well as with the spread of online games among ordinary users. More and more people are learning about this technique and often trying it in practice. Unfortunately, it doesn't work.

Why does this happen and what inconsistencies do we not notice when we think about what the Martingale system is?

Feedback shows that people do not think about the real likelihood that they will get a different color on the roulette wheel next time. It seems to them that by constantly playing with such tactics, they will be able to make a profit sooner or later, without going beyond the budget, but this is not so.

In fact, your money will run out long before the system works and you win. Perhaps you will go all the way with your bet, but again, this will only lead to even more loss of money. In fact, the Martingale system (reviews from experienced players will confirm this) does not work. Why this happens like this, read on.

Refutation

There are several factors that refute the theory of alternate doubling bets. These include, for example, total control by the casino. As soon as the administration notices that you are using such a scheme, they immediately implement some “measures”. This includes: deleting a player, blocking his account (after all, such actions are aimed at deceiving the institution and are prohibited by the rules). In such a situation, you simply cannot tempt fate any further.

In addition, even if you just look at the dry numbers, you can mathematically confirm the impossibility of winning if you use the Martingale system. Think about it: you could only win if the odds of getting “black” and “red” were the same. However, in roulette the situation is somewhat different and there is also a third option - “zero”. This is a “green 0”, which (according to probability theory) will periodically appear clearly not in the player’s favor. Thus, the whole strategy collapses very quickly.

Other areas

In fact, as we have already noted, users often write that the Martingale system in roulette differs from that in other areas of gambling, which is why it is likely that you will be able to beat, for example, a bookmaker or the Forex market ". To do this, it is enough to apply the same principle of betting on one of the two and further doubling.

Even if you imagine that you are actually playing with an unlimited pot, we can assure you that the Martingale system in sports betting works no better than in a casino. Here you also have no guarantee that one of the two events will not appear regularly for another 100 times. And imagine, if this actually happens, how much money you will end up losing on such a “doubling”. Even if you start with 100 rubles, by the fifth time you will have to bet a huge amount. Where is the guarantee that you will be able to cover this bet with a winning combination? That's right, she doesn't exist. This means that this principle does not work. And believe me, the Martingale system on Forex gives the same results.

Binary options trading is considered a highly effective type of online work in the era of the development and spread of the Internet. However, it entails high risks that are associated with daily asset price movements. In such a situation, various programs and methods that simplify trading calculations can help.

One of these assistants is the online martingale calculator for binary options. Let's consider the features of its application in this article.

Main settings

The probability of making a profit in any of the options is 50%. As a result of using the calculator, the trading participant receives a profit that covers losses during unprofitable trading. The main caveat of using such a program is that the player may ultimately not have the funds to open new transactions.

It can be difficult for a financial market participant to determine a specific amount of profit that will compensate for his losses. The binary calculator correctly calculates the lot and depot size at any stage of the purchase. In such a situation, the trader enters the following data in specific fields: the amount of the minimum investment and the profitability in%.

The result of the calculations is a sequence of bets with increased values. So, if the initial deposit amount is $10, and the probable return is 50%, then the calculator shows the following rates: 10; -10; 10; -10; 10; -10; 10. Using this program does not cause any difficulties. When calculating the increase in transaction volume, you need to enter the value of 1 bet and the % of money won.

This tactic covers losses. Each subsequent position, after a failure, increases so much that it eventually covers all losses from previous losses and makes a profit. When using this method, you can receive a certain amount of funds for a long time and not go into losses.

However, the player must always have a specific deposit amount in order not to lose money on several losses in a row. Of course, in theory this works, but in practice, the deposit may simply not be enough to open a new position with an increased lot.

The Martingale trading method is used to compensate for losses from failed transactions. The goal of the calculator is to ensure that the income from each unprofitable contract covers the serial loss and at the same time brings 1 profitable bet.

According to mathematicians, such a strategy can take place, but one must keep in mind all the risks. After all, the price of an asset, for example, a currency pair, rises very sharply and quickly, and you can even miss the moment when the account is reset to zero.

As a result, before using such tactics, you need to calculate in advance what kind of losing streak the trader’s method will bring. Let's look at an example:

• the amount of the initial deposit (for example, $100);
• % of income (for example, 80%);
• the maximum length of a losing streak based on the results of a history test (for example, 5 trades).

So, the smallest risk is $100, profit is 80%. 1 contract of the series is always opened with the least risk. If the forecast is correct and the lot is closed in money, the next bid is made in the same amount.

If a loss is received, the value of the option must match the next one - $225. In such a situation, if the contract is closed in the money, the market participant receives $180, and minus the losses from 1 bet, the net income is $80.

Afterwards, the trader buys the contract again at the minimum position. As a result, in each transaction there is a calculation to receive a net profit in the amount of the payment from the minimum contract, in our case $80. If the deposit is not limited, then this strategy is considered break-even. Naturally, no player has an endless deposit.

As a result, for such a system to work effectively, each series should have no more than 3 contracts. This means that the longest losing streak at the test stage does not exceed more than 3 trades in a row.

Martingale table

When trading using such a calculator, a financial market participant knows in advance the percentage of income after a successful transaction. Usually it is 70–85%. Below is a visual martingale table for binary options, which shows the calculation where the profit percentage is 80. To close a losing contract, the trader raises the next bet by the percentage deduction (in this case, 0.8).

With the 1st serial position being 1 dollar, the next position is equal to 1:0.8=1.25. If it turns out to be winning, the income will be = 1.25+1 = 2.25. As a result, the financier closes the amount of both 1 and 2 orders, reaching the break-even level.

In such a situation, the user does not receive income, but does not lose his deposit. Next, by making the calculation using the formula, you can get a table of the values ​​of the following orders:

It shows that with 9 losing contracts, the trader loses $658.2. And in the case of the 10th step – $1480.95. At the same time, he earns nothing.

Below is a detailed martingale table for binary options in rubles, calculation of a bet with a nominal value of 30 rubles. and with a winning rate of 85%.

This table shows that at break-even levels, a position with a nominal value of 30 rubles. and with a winning of 85%, the trader already at the 7th stage makes a lot 100 times larger than the initial one, and at the 8th step - 200 times (!). And then the rate of increase increases at a very fast pace. Already for the 8th lot you need a starting deposit of 7055 rubles - and this happens for break-even positions. If the player increases the 2nd bet in order to make a profit and cover losses, then the remaining lots will also increase.

When to use?

This system is very dangerous to use, because with high risks, your lot must be increased by at least 2 times. As a result, players use such tactics only in conjunction with technical analysis. Let's say a trader carried out an analysis and came to the conclusion that the EUR/USD currency pair will rise, but his trade ended up losing because he set the wrong expiration date for the asset. However, his prediction remained correct.

In such a situation, a financier can use such a trading system, recover losses and make a profit. At the same time, it is better not to trade using this system in the following situations:

• when the trading session opens in the US and Europe. During this period, great volatility arises, which often defies logic;
• you cannot trade against trends;
• before important news from the financial calendar begins to appear;
• if a market participant has a small depository.

In general, this tactic is successful - it covers losses with income from 1 transaction. With a stable trend or when using a specific system, the player completes contracts with a profit in the 1st stages of increase. But is the user ready for this?

To make a profit of $24, a trader must have a deposit of at least $5,000. Having such a deposit, he wants to earn a greater profit than $16.8 (70% of $24). Also, opponents of this know that in the future there will be an inevitable loss of the deposit, since the losing streak is not limited by anything.

Analysts say that if you remove technical analysis and use only the Martingale system on pure assets, the 1st deal can be closed with an income of 57.4%, the 2nd - 79.1%, and the 3rd - 98 ,9%.

Deciding whether to use Martingale tactics on binaries or not is everyone’s choice. Traders often consider Martingale to be a certain standard of fairness that takes into account all risks. In this case, a binary options calculator is the best tool for successful players who are ready to take risks and get bigger profits.

Trading digital contracts attracts many people, but most are looking for easy money. Beginners want to earn money right away, without going into details and without wasting time on training. To make their work easier, speculators are looking for tactics that allow them to make profits without understanding the laws of the market. The most popular is considered to be the one that came from the world of gambling. The system involves increasing the bet when losing. To avoid calculations and quickly conclude trades, beginners use the Martingale calculator for binary options online and apply a trading strategy. This program will be discussed in the article.

Features of work

The program is available online on many trading resources. Also offered by a number of brokers, for example. The service has 2 fields, in the first the amount of the bet with which the trader will start trading is entered, in the second the profitability of transactions is indicated. Then the “Calculate” button is pressed and after 5-10 seconds a sequence of bets appears.

The profitability of contracts with brokers is less than 100%, so the initial amount does not double. If you do not take this point into account, you will face losses. With a standard option profit of 75-80%, the investment increases by 2.5 times. In this case, losses on orders closed in the negative will be covered and the amount will remain as income.

The calculator helps simplify the process; the trader will not calculate the bet amount manually, so he will save time. The service does not require payment, is available for free, and works without freezes.

Advantages and disadvantages

The calculator has pros and cons that you should focus on. The advantages are as follows:

• free;
• availability;
• no download required;
• ease of use;
• simple algorithm;
• entering a minimum amount of data;
• quick calculations;
• saving time.

The service has virtually no disadvantages; the disadvantages include the inability to perform calculations when there is no Internet connection and the unattractive program interface. Otherwise, there are no complaints, so speculators use the program with pleasure.

Martingale: to be or not to be?

Beginners resort to this strategy because they believe that after 3-5 bets they will catch the trend and make a profit that will cover their costs. However, in reality the situation is not simple, since the market may be in a flat for a long time. As a result, 10-15 orders in a row will close in the negative.

To cover losses and remain in the black, you will need to deposit a large amount and start trading with $1. At first glance, the bet is insignificant, but the third investment will be $8, and the eighth will be $645. If the ninth transaction closes in profit, then the income will be 75-80 cents.

The amount of profit is not worth the risk that the tactic entails. In addition, the deposit does not always withstand a trading drawdown (a series of unprofitable transactions). If the account does not have $1,000, it is not recommended to start trading. However, even in this case, the chances of making a profit are low.

Analysts do not recommend using the Martingale tactic, since it has not proven its worth in the long term. The system gives positive results within 2-3 days or a week, but subsequently leads to a drain on the balance. This truth should be accepted as an axiom, and not try to refute it in trading conditions, since the experiment will fail and lead to losses.

Using Martingale correctly

It has already been said above that tactics do not produce results in long-term trading. However, a number of traders use the system and are satisfied with the efficiency. For a strategy to be profitable, you need to use it wisely.

Beginners open trades at random because they do not understand how the market works. To make a profit using Martingale, you will need to master:

• Technical analysis indicators. There are more than 200 tools in MetaTrader, the most popular are Moving Average; , . Programs help determine trends, reversals, and flats. Due to this, contracts will not come off when the market is in a sideways corridor, and trading will not be conducted against the trend. When the first order is closed in negative territory, the speculator will understand the mistake and open a second contract in the desired direction, increasing the investment by 2.5 times.
• Candlestick analysis. Patterns and figures on the price curve help you trade profitably without using indicators. The effectiveness of such an analysis is 75%. To compensate for the remaining 25% of trades that close at a loss, Martingale is used.
• Trading on news. A number of traders successfully trade using the Economic Calendar. The summary table contains news that affects asset prices and is divided by importance. At the time of publication, there is high volatility in the market, on which you can make money. If the price of a trading lot, contrary to forecasts, has not increased (becomes higher), a second transaction is opened in the opposite direction with a larger bet amount. Thus, it is possible to compensate for losses and make a profit.

When mastering the methods described above, options will not be purchased at random, which means you will be able to avoid long-term drawdowns and reduce losses.

It is better to spend time studying indicators and candlestick patterns than to lose money.

Conclusion

The Martingale calculator is a useful thing that allows you to calculate the investment amount when trading using the strategy of the same name in a matter of seconds. However, before trading using this tactic, it is recommended to weigh the pros and cons of such a decision.