Virtually all materials for beginners provides information on how important the Martingale strategy in binary options. This method is referred to as a key, and sometimes almost the only possible for those who want a quick profit and do not seek to delve into the "wilds" of trading. And it is this method many often limited.
Just want to warn you against such findings. As you have probably learned from my other materials, rapid enrichment using options trading is impossible in principle, and for the Martingale betting strategy is no exception. Moreover, injudicious use of this system does not enrich you and quickly destroy. But the combination of the competent trade binary options with other strategies will allow you to significantly improve your business, to prevent fatal losses.
First of all, I recommend to get acquainted with the training video where I, in an accessible form, using clear diagrams, telling about this popular system of work in binary options, including a trick, that it conceals.
Martingale - it's all about?
This concept (incidentally, its origin is shrouded in fog, but it is not particularly interesting to us) is initially associated with rates, is widespread in gambling, primarily in roulette. That is why the opponents of trading binary options as such do not get tired of comparing this activity with gambling - hinting that in the final case all the work boils down not to the application of knowledge, but to the test of luck, and that invariably in favor of the "casino". In fact, working in binary options is really a difficult trade and a serious science, but with respect to Martingale's strategy, one should really be cautious.
What is the Martingale strategy in binary options (and globally)? In short, such a system is a mandatory rate increase after every loss and return to the initial bet after a win. There is the so-called Antimartingeyl, where everything is exactly the opposite, but about him interested can find all the necessary information on their own.
Let us explain in practice. You lose on a bet, for example, 4 dollar - then the next time must put 8 (so that you recoup the loss and stay in profit). Lose 8 - 16 bet, lost 16 - 32 and so on. However, if you win - just go back to the rate at which to begin the game (in this case to 4 dollars). Since 1 or 2 dollars, win, respectively, it is necessary to return to this amount.
No complicated calculations - just the "bare" the theory of probability. That such a system, giving it a miracle-invention, usually offer "lohotronschiki" allegedly made rich on rates in a virtual casino. In fact, such a strategy, if you blindly follow it, will inevitably lead to the loss. Firstly, on the roulette zero falls periodically - and the player does not get the opportunity to double the bet. Second - in the casino usually exhibit maximum rates, and several defeats in a row is simply impossible to recoup.
Martingale and binary options
Why is this betting strategy is so popular (according to unofficial data, it uses more than 80 percent of traders working in binary contracts)? The answer is clear: the whole thing in the simplicity! None of mathematics, there is no economy - we actually toss a coin and hope that it will not be too many times in a row to drop out of one side.
The main thing - correctly calculate the amount that you can take the risk. Do not forget: the payment for the profitable trade in binary contracts will not be in the amount of 100% of the lot, and less - accordingly, need to cover the loss not twice, and perform calculations. This helps special calculator: to introduce minimum investment rate of return - and get the recommended rate. Calculator, you can use directly on this page, I will describe the details below.
!! Calculator in online mode!
Sometimes probability theory still leads, and to pay off another knee need a very large deposit. Only then (previously ignored) you can find out what turns out to be your broker implies a maximum bet! All can be considered the money lost. And because such a limitation, as a rule, is present, the Martingale betting strategy can not be regarded as a system, which is worth betting. However, sometimes it can be quite a use: discussed below in specific situations.
Martingale Betting System: the pros and cons
Before moving to the specific examples let's sum up.
Thus, a significant advantage of the strategy is that:
- To master it does not need special training;
- In certain situations, it can help you can really get a solid amount in a short time;
- If you have a large deposit trade binary options using the Martingale can become almost a win-win.
But the disadvantages:
- This is one of the most aggressive betting systems - that is, the system in action "sink or swim";
- Payments for transactions is always lower than 100%, which means - the declared principle of «50 / 50» actually does not work;
- To feel confident with this system, you need to have a large deposit and not be afraid to risk a serious amount.
What you need to conclude? Here it is: Martingale should not be the main strategy, it's too risky. It should be used only when you need to play a few unsuccessful investments, marching in a row, or one time play a significant amount. Let me explain it in a specific situation, from my experience that brought me winning back a failed option.
Bids in a particular situation
So, as has been mentioned, this method can not be used at random rates: in fact it is not coin toss! You must be able to analyze the market situation and determine trends. Work on the Martingale system is necessary only with the express trend (upward or downward), respectively, need to master the strategy I described "the trend" and "counter-trend".
So, here's a specific situation. Option, in which we have invested US $ 100, closed in the negative. Naturally, we need to return their money, and not just to return and make a profit. We are looking for a good asset, studying charts: Well, for example, the currency pair AUD / CHF. I'm using his own method for dealing with trends, understand that in the next few minutes 10 value of this pair will fall. So, it is necessary to open the option for a fall. For what is worth?
Here we will need a calculator. There we introduce just two numbers in the field "minimum investment" and "yield." The first number - the amount that we lost in the first option. In this case 100. Second - this interest. We take the 100 percent and add the percentage of the profits offered by the broker. Today my broker (24 option) offers 73 percent, respectively, in this column we introduce 173. As a result, we obtain a chain of numbers, the nearest of which - 237. Accordingly, the option to open 237 US dollars, to the nearest time stamp espiratsii - in this case turns on 8 minutes.
What is the result? Forecast as I had hoped (or rather, precisely counted) works - and I win $ 210. Winning 100 dollars, I return loss, the rest 110 - Net profit of the option. You can continue to play - but the amount corresponding to the minimum investment (in this case - $ 100), not higher!
Once again I give this advice: do not risk large sums in this system rates! The calculator gives you the seven steps - pay attention only to the first three! Otherwise you risk serious "hit" by burning even a solid deposit. To resort to this system only in exceptional cases: whenever possible, use trading strategy for trading signals. Keep track of the most powerful indicators and do not forget about the work on the preliminary analysis of the market! Generally, the more strategies you know, the more options will have to be very useful when trading binary options.
Do not think that for successful work with binary options you have enough rudimentary notions of probability theory and the ability to work with the calculator. Carefully review the main ones strategiesListed on the site, learn how to work with trading systems - And the result of your work is not practically depend on random factors!