BitcoinMiningForex - It was close duet of years agone when I was experiencing forex trading amongst no deposit bonus offered past times times the forex brokers to attract new clients, 1 of my cousin blood blood brother Bodrul Islam was talking amongst me close a no deposit bonus offered past times times a forex broker.
During the discussion, he told me unopen to of the key trading atmospheric status to merchandise the bonus. One of the atmospheric status was that the trader cannot apply Martingale trading strategy province trading on the no deposit bonus account. It was position out time, I heard the key words "Martingale Trading Strategy".
Martingale trading strategy was position out introduced past times times French mathematician Paul Pierre Levy, after on an American mathematician named Joseph Leo Doob worked a lot on this trading strategy. Martingale Strategy is primarily a betting strategy based on probability. However, inwards financial trading the strategy tin alive effectively applied to minimize acquit chances equally good equally loss equally good equally to maximize profit.
In forex trading martingale trading strategy is mainly applied to create produce the losing trades, but it tin also alive applied to maximize cyberspace plow a lucre from winning trades. In this post, I am going to verbalise close applying martingale trading strategy to create produce amongst the losing trades. Let run into how martingale trading strategy works.
The cost nautical nautical chart presented inwards a higher theatre is a daily nautical nautical chart of eur/usd currency pair, equally good equally we are going to apply martingale trading strategy to merchandise the pair. Assume, we placed a sell social gild at 1.11000 on eur/usd currency pair, we placed it to build cyberspace plow a lucre non to apply martingale trading strategy. Unfortunately, the cost started to motility up, equally good equally we had a losing trade.
In such situations, traders tin bring got 1 of the iii steps such every fleck theatre a buy order, unopen the losing order, or apply martingale trading strategy. Let run into how we tin apply martingale trading strategy. As I said earlier, say we placed a sell social gild on eur/usd currency dyad at 1.11000 to build profit, equally good equally our social gild size was 1 mensurate lot. At this dot we bring got no loss.
Now unfortunately the cost moved upward to 1.11500 equally good equally we were amongst a losing trades. Our loss was 50 pips or $500. Now we stance the marketplace testament learn downwards equally good equally we decided to apply martingale trading strategy. We placed an sell social gild at 1.11500, equally good equally our social gild size was ii mensurate lots. Mentionable, according to martingale trading strategy, the social gild size should alive double of the previous social gild size.
Again marketplace moved against us equally good equally reached to 1.12000, equally good equally our total loss was 200 pips. We decided to learn brusk 1 fourth dimension more than equally good equally placed a sell social gild on the pair. Our social gild size was iv mensurate lots.
Our third social gild is already placed equally good equally we are however inwards loss. Our luck was non goodness that quaternary dimension equally good equally the dyad moved to 1.12500. We decided to sell 8 mensurate lots on the pair. At 1.12500 cost level, our total loss was 450 pips.
Pressure was going up, marketplace was trending, equally good equally no reversal took place, marketplace moved to kiss 1.13000 cost level. We decided to learn brusk 1 fourth dimension more than amongst 16 mensurate lots social gild size. At this dot we had a loss of 950 pips. However lastly the dyad touched the breakeven dot equally good equally we were able to give away the social gild at 0 loss.
These are the steps how the martingale trading strategy is applied inwards forex trading province the marketplace moves against you. While dealing amongst losing trades, application of martingale strategy lower the average social gild price, inwards this ship I mentioned the average social gild cost every fleck interruption fifty-fifty cost because when marketplace reaches the average cost the profit/loss is zero.
Some key points should alive considered province applying martingale trading strategy-
- It should non alive applied on a trending market.
- The social gild size should alive chosen logically amongst proper acquit chances management.
- Every social gild should alive placed performing marketplace analysis.
- Not more than than v orders should alive placed past times times brusk term traders.
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