Dangerous! Martingale in binary options - Calculator and tricks. Martingale method: a dangerous but effective method of money management Calculation of bets using Martingale

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.

The ideal option would be to choose a suitable system from those described in the “” section rather than risk it in vain. The trader will select effective tactics depending on his trading style and will close 75% of trades with a profit if he strictly follows the rules.

Trading binary options is one of the most effective ways to make money online in the era of high technology. At the same time, the process of making a profit in the financial market is associated with high risks associated with constant price fluctuations for assets. Competent capital management and effective money management to obtain stable and high profits from Internet trading are necessary in the activities of any trader.

Helpers here are various methods, principles, programs (for example, ), which allow you to optimize routine calculations and free up time for creative search in a difficult financial game. Thus, the martingale calculator allows you to calculate stock moves and compensate for possible losses. He is able to determine the required deposit size to withstand a possible drawdown in binary options.

Rate (for example: 30)

Yield in % (for example: 80)

Maximum losing streak:

Sequence of bets:

Key Features

The calculator is designed to help those who use the same principle in their trading. It allows you to quickly, with a few clicks, correctly calculate a series of lots for all orders.

If you make the initial bet much less, a kind of airbag appears. On the one hand, this will limit the possibility of increasing the lot indefinitely, and on the other hand, the depot will not be exposed to large risks. The probability of winning in each binary option is 50%.

As a result of using calculations, a financial market participant expects to receive a profit that would compensate for losses in case of unsuccessful trading.

The main difficulty of using binary contracts is the risk of lack of money to purchase new lots. It can be difficult for a trader to calculate the exact share amount that will help him recoup his losses and possibly return some profits.

Operating principle

A calculator for binary contracts can be downloaded from specialized sites dedicated to binary Internet trading, or you can make calculations online.

• minimum investment size;
• expected return as a percentage.

For example, if the minimum investment is $10, and the expected return is 50%, then the following sequence of bets is obtained: 10; -10; 10; -10; 10; -10; 10.

Calculations using this calculator are unlikely to be difficult. To calculate the correct increase in Martingale bets, you only need to enter the amount of the first bet and the winning percentage that the broker gives for a specific bet.

The Martingale system is necessary to cover losing trades. Each subsequent bet after a losing trade is increased so much that, on the one hand, it compensates for all the losses of previous losses, and on the other hand, brings in income in the amount of one winning trade. This method allows you to win all the time. Another thing is that the trader’s deposit must always have the required volume in order to withstand several losses in a row.

The online calculator will be useful for both beginners and experienced participants in binary options trading. Martingale is often perceived by market participants as a unique model of quantitative justice. The method allows you to take into account all possible exchange risks. This is an indispensable tool for successful traders who make money on binary contracts.

Recently, due to exchange rate fluctuations and the total strengthening of the dollar, ruble accounts for binary options are gaining more and more popularity. It must be said right away that there are quite a few brokers who provide the opportunity to open ruble accounts, and you yourself impose an unnecessary restriction on yourself by being tied to a ruble account. For successful trading and making a profit, it is not the account currency that is important, but the capabilities of the trading platform. I will write more about what you need to pay attention to when choosing binary options trading in one of the following posts.
Now I'll look at examples of martingale calculation for 30 rubles and 100 rubles, I'll show you how to independently calculate the martingale step for rubles and what pitfalls may await you.

An example of a martingale for a 30 ruble bet with a payout of 85%.

As you can see, calculating the Martingale steps according to the “break-even” levels (in the case of a successful transaction, we recover from a loss, without profit) and with one of the highest bets of 85%, already on the 7th step we are forced to place a bet 100 times larger than the starting one, and on the eighth more than 200 times (!). And then the rate of increase in the rate will grow at a cosmic pace... think about it. After all, for the eighth bet you need a starting deposit of 7055 rubles. And this is only at the “break-even” levels - if you increase even the second bet in order to earn money, and not just cover the loss, then the next bets will also increase.

An example of a martingale for a 100 ruble bet with a payout of 80%.

All calculations are the same as in the example with a 30 ruble rate.

The bet size is the amount of the next transaction after the loss of the previous one.
Deposit amount – the required amount of the initial deposit to be able to complete the transaction. How much money do you need, in simple terms? This same amount is the total loss in the event of a negative transaction result.

How to calculate the martingale step for binary options in rubles yourself.

The principle of calculation itself is quite simple, the main thing is not to get confused in the numbers. To do this, I recommend taking a pen and paper and drawing it into two parts, one containing the “bet amount” and the other “deposit amount”.
We immediately write the first bet, for example 50 rubles. We write the same amount as a deposit. Since we have the first bet, the spent deposit is equal to the first bet.

In case of loss, you need to increase the next bet by the amount of the percentage deduction. If we have an option with a deduction of 85%, then we divide the deposit amount by 0.85 (50:0.85=58.8), round up and get 59 rubles.
We have the following bet of 59 rubles.
The deposit amount is the sum of our bets. At the second step it is equal (in our example) 50+59=109 rubles.

The next bet is 109:0.85=129 (including rounding)
The next deposit is 109+129=238 rubles.

I think the principle of calculation is clear?

I recommend keeping all calculations and notes on a piece of paper, this will help you avoid getting confused and lost. After all, the transaction amounts may change if you sold a binary option ahead of schedule or moved it to another time... it’s very easy to get confused throughout the day.

And some food for thought...
If we lose five times with a fixed bet of 100 rubles, we will lose 500 rubles. To restore the deposit balance, 6 successful transactions are enough and the 7th will close the balance and bring us about 60 rubles in profit on top. With martingale, under the same starting conditions, we will lose 2111 rubles (table above) and to recover we will need 26-27 transactions of 100 rubles each (!).

Martingale is the most popular strategy for playing in Forex, binary options and even in casinos. Its essence is that each subsequent bet should be doubled compared to the previous one. Therefore, if you win, all unsuccessful bets are covered, and the winnings will be the size of the initial bet. The profit may be small, but it is guaranteed. Due to its simplicity, it is suitable for both experienced players and beginners.

Mastering the strategy does not require in-depth special knowledge of stock trading. In a very short period of time, you can use it to earn a substantial amount of winnings. With an unlimited deposit of the player's funds, the strategy literally becomes a win-win option.

Despite the advantages, the Martingale strategy is called the most aggressive game for betting on binary options. Therefore, if the deposit has a limiting framework, it is better to first thoroughly understand whether it is worth taking such a big risk, because there is a possibility of losing all the savings on the deposit.

Martingale in binary options

About 80 percent of binary options traders use this strategy. The law of this strategy was derived by the mathematician Martingale, so no matter how easy it may seem, you must remember the correct calculations for calculating the amount of the initial bet. It is worth considering that the winnings from the transaction in the amount of one hundred percent are not awarded.

Consequently, covering the loss leads to complex calculations, because In this strategy, the loss must be covered exactly twice. For accurate calculations, a special Martingale calculator for binary options has been created.

Expert opinion

Vadim Binclub

Trader expert. I've been making money on binary options for over 5 years!

This strategy is recommended to be used only when the trend is clearly decreasing or increasing. If there is a sideways trend, it is better to abandon the Martingale strategy altogether. After winning, you need to resume trading with a new minimum bet.

For clarity, let’s say you made a bet of $3, if the trade is unsuccessful, following this strategy, the bet should be $6, the next bet if you lose will be $12, the loss should be $24, etc. Therefore, the Martingale calculator for binary options online acts as a lifesaver. Thus, when you win, the entire accumulated loss will be covered and up to 90% of the profit from the transaction will remain a plus. After successfully closing the transaction, the bet is again placed at $3.

The Martingale strategy is mainly used when playing Turbo options. From practice, we can conclude that unsuccessful transactions can be repeated 10 or 20 times in a row, so you need to be prepared for such large amounts of investment.

Martingale calculator for binary options

Martingale is a purely mathematical strategy; it is used without the help of indicators and does not concern technical analysis. To calculate each subsequent loss coverage, it is best to use a special Martingale calculator. It is enough to enter there the size of the minimum investment amount you have chosen (initial bet) and the percentage of profitability (percentage of winnings from the broker). This way you will get the optimal rate for working on binary options.

Below you can calculate using our online Martingale calculator :

Rate (for example: 30)

Yield in % (for example: 80)

Maximum losing streak:

Sequence of bets:

Even if you do a great job using the Martingale strategy, do not forget that to play options effectively you need to use more than one strategy. The best results are obtained by combining Martingale with a trend trading strategy, because the mathematically predicted result increases.

Martingale can help you out if you need to win back several losses in a row. The strategy can also be used to cover a large amount at once. The method is very gambling, so follow the trend and use the Martingale calculator for bets.

The dangerous Martingale money management method came to the world-famous Foreign Exchange thanks to the light hand of gambling enthusiasts. Some traders, especially beginners, perceive the method as a trading strategy and consider Forex martingale the only way to achieve 100% profit. Experienced pros are cautious about the tactics of gamblers, since not only profit awaits the trader at the end of the journey, but also a very likely loss of the deposit.

What is Martingale anyway?

The main argument for The martingale principle in the Forex market is a well-known fact: the martingale tactic, successfully used in gambling games (poker, roulette) for two centuries, caused the appearance of minimum and maximum bets and two green fields: “0”, “00”. Thus, casino owners have protected their business from the martingale system, and accordingly, traders’ confidence that the method provides profit is not unfounded.

The mathematical principle of martingale discovered by Paul Pierre Levy, a French mathematician, based on probability theory. The original version of the strategy is simple: the player places a bet and every time the bet closes with a loss, he doubles the deal. As a result, all losing trades are covered by one winning position. The most convincing strategy on which the martingale system is based is demonstrated by the example of the game “heads-tails”:

The player makes a bet ($5) - tosses a coin and bets on the side coming up in one direction, for example, “heads”.

Each subsequent throw doubles the bet, adhering to the chosen direction (“heads”).

After waiting for the desired side to appear, the player wins back all losses with a profit of the initial bet ($5).

Joseph Leo Doob, an American colleague of the famous Frenchman, argued that this strategy can make a 100% profit. Nevertheless, Forex martingale is still successfully used on the currency exchange as a dangerous but effective method of money management. However, a simple example with the game “heads-tails” demonstrates the weak points of the strategy: the amount in the player’s pocket must be sufficient (or better yet, unlimited) to continue to stay in the game until the desired side appears, while constantly doubling the bets.

Using the Martingale method in Forex

A comparison of the casino strategy with the martingale method is clearly in favor of the latter. Firstly, the tactics have been significantly improved and, as is usual in trading, where demand creates supply, it has been brought to automaticity. However, do not delude yourself - both the money management method itself and the proposed advisors are not a guarantee of 100% profit. Secondly, the martingale system has an indisputable advantage in comparison with the same shares: any company can go bankrupt, and the country, even in conditions of currency devaluation, will not reach “0”.

On Foreign Exchange, the martingale method for Forex has another advantage: even with a series of unsuccessful transactions, the trader will receive the expected profit, since a price rollback - a basic law of Forex - will happen sooner or later. The only question is Is the deposit enough to withstand serious drawdowns?? On the currency exchange, the principles of gambling and the vulnerabilities of the strategy are preserved: the need to double lots presupposes a bottomless “deposit”. However, for those who “missed” the trend and opened positions incorrectly, the martingale Forex system is the only plan of salvation, unless you take into account the likelihood of a planetary catastrophe in which the currency pair goes to “0”.

Let's look at a simple example of using this strategy in the Forex market

1. Select any currency pair.

2. We enter buy or sell positions clearly in the direction of the current trend with a minimum lot. To determine the trend, you can use a chart with a large one (for example, D1). After we have determined the price direction (for example, upward), we open a position (in our case, to buy Buy).

3. For an open transaction, be sure to set equidistant stop loss and take profit orders (50 points for each from the market entry).

4. If the price knocks out our take profit, at the same level we open a new position, also for purchase and with similar orders.