Beware of Martingale

Discussion in 'Trading' started by ScroogeMcDuck, Oct 30, 2024.

  1. deaddog

    deaddog

    That's my point. Using stops has nothing to do with martingale.Using or improperly using leverage may lead to blowing up an account but again has nothing to do with martingale.
    Martingale is doubling your bet when you lose until you finally win. It works fine if you have unlimited capital.
     
    #31     Nov 4, 2024
    shine likes this.
  2. shine

    shine

    I would say it differently: martingale does not allow the use of stops at all. There is a simple build-up of positions against the trend in the hope that the trend will soon reverse and your orders will finally go into plus. But with a constantly increasing load on the deposit, the chance to wait for a reversal and save your deposit decreases exponentially.
     
    #32     Dec 10, 2024
    MACD likes this.