Friday, January 19, 2018
Tags Posts tagged with "why Modified Martingale Strategy does not work"

# How to Implement Martingale type betting Strategy on trading without losing the money

## What is a Martingale type betting?

A martingale is a betting method which is used as trading strategy in binary options which involves the increasing the amount of the initial investment amount at each loss we face at trading until a gain is achieved. This will give huge reward if we succeed at some point, what if we lose?? this method will lead us to BANKRUPT.!! Selling our beloved house, Car, doing dead end jobs.etc.

## History behind Martingale Type Betting Strategy

The Martingale Concept in Probability theory was first introduced by PAUL LEVY in 1934, however the term MARTINGALE was not coined by PAUL LEVY, it was then coined by Ville in 1939. Usually, this type of strategies were most popular in the 18th century at France.

## Why martingale betting doesn’t work

In my example, if you lose your transaction, this principle will invite you to repeat the same bet for an amount of €20. If your end up the trade at a loss, you should again bet the amount double than the previous one. In a few trades, the amounts to invest become astronomical and un-predictable. The results and consequences will be empty account or get lot of amount than we trade regularly.

### Now see this Example in betting and find out why it does’t work?

If you look at the graph plot given above, you can find out your successive bet will be around 5Grands..\$5,000. In order to win back all of your losses. If you win the bet, your total calculated prodit will \$10, come on guys..it is not \$10Grands..its just 10bucks….

## The Modified Martingale Strategy

I just came across this Modified strategy on a forum. If you are really wealthy enough to bear the loss, go with this strategy.

As with any other progression, it won’t overcome the house edge, but it can survive many more consecutive losses than the traditional Martingale and you can win a staggering amount from a single sequence. The system requires 1022 units and you’ll be able to survive up to 16 consecutive losses. In comparison, the traditional Martingale with 1023 units will only survive 9 consecutive losses. The progression is pretty simple… 1-1-2-2-4-4-8-8-16-16-32-32-64-64-128-128-256-256 units. If you lose a bet, go to the 2nd step and continue deeper with each bet. When you finally win 2 hands in a row, reset to a single unit. If you’re unlucky enough to lose 16 hands in a row before winning your last 2 bets of 256 units each, you’ll still end up with 2 units of profit. If your sequence ends up being -1-1+2-2+4-4+8-8+16-16+32-32+64-64+128-128+256+256, you’ll end up with a whopping 510 units of profit! The only way you’ll bust out is if you never win 2 hands in a row in the entire 18 step progression.
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