You’ve probably heard about this trading strategy or Method called the Martingale Trading Method.
You might be wondering what it is and what details you need to know before you begin using it.
If that is the case, then wonder no more!
Today I am going to take you through everything there is to know about the Martingale Trading Method.
You must read through the whole post to grasp every detail about the Martingale Trading Method/Strategy and how it is applied to Expert Option.
In brief, we are going to break the Martingale Trading Method into 7 different sub-topics;
- What is the Martingale Trading Method?
- The Principle behind the Martingale Trading Method.
- Martingale Trading Method demystified.
- Why Use the Martingale Trading Method in Expert Option?
- Important Considerations in Using the Martingale Trading Method.
- What you need to Trade Using the Martingale Trading Method in Expert Option.
- Placing trades on Expert Option using the Martingale Trading Method.
What is the Martingale Trading Method?
The Martingale Trading Method is a strategy of trading forex, especially binary options.
This is a strategy whose concern is the Trade size or the amount you invest per trade.
It is a trading method that involves increasing your trade size or amount when you lose.
This method was created by Pierre Levy in the 18th Century.
It is the opposite of the anti-Martingale method which involves increasing your trade size when you win.
The principle behind the Martingale Trading Method.
The principle behind this strategy is very easy!! The method is based on doubling down strategy.
This is a strategy that was first used in gambling but has been adapted to binary options trading in recent times.
It is possible to recover money that has been lost in previous unsuccessful trades! This is by consistently doubling the size of the investment after a loss.
The method aims to recover capital that has been lost in the previous trades by increasing payout or gains. As we will later see, this is helpful because the results; is profits and more profits.
Martingale Trading Method demystified.
To understand the Martingale Trading Method better, let us demystify it with an example!!
Say, for example, your Expert option account has a capital of $ 1000. We will begin trading with an investment of $10.
We will also assume that the returns on the asset we are trading, say EUR/USD, are 85%.
The Expert Option platform does not charge you to place a trade so if you lose, only $10 will be lost. On the flip side, if you win, 85% of $10 plus the $10 you invested will be credited to your account. Totaling to $18.5.
So we begin!!
You place a $10 trade Up. Upon expiration, you Win! So you get $10 returned to your account and the profit on the investment which is 85% of $10.
In total, $18.5 is credited to your account!! This makes your account shoot higher by $8.5, bringing it to $108.5!!
You place another trade using the same amount. Unfortunately, your prediction is not right!! Any reason to worry?? Absolutely NOT.
That is where the Martingale Trading Method comes to your rescue!!
You placed a second trade and it was unsuccessful, so you lost the invested amount which is $10. This makes your account go lower by $10 bringing it to $98.5!!
In the next trade, you double your investment amount to $20. So you place a $20 trade Up. Upon expiration, you Win!! This will mean that $20 will be returned to your account and a profit worth 85% of $20, which is $17 will also be credited to your account!! This makes your account shoot higher by $17 from $98.5 to $115.5!!
See what Martingale Trading Method has done!
Not only have you returned your account to the initial capital but you have also made a whole $15.5 in the process!
That demonstrates that for sure, Martingale Trading Method works wonders in trading binary options!!
Why Use the Martingale trading Method?
There are several reasons why you need to consider the Martingale Trading Method;
- You are most likely to recover your capital lost in unsuccessful trades!
- You are likely to recover losses made during previous unsuccessful trades!
- Besides recovery of capital and losses, you are likely to make profits beyond your recovery!!
Important Considerations in Using Martingale Trading Method.
Martingale trading Method has proven so pleasant to us in the above description.
However, let us consider the following before we decide to apply the strategy;
- The financial markets may not be as perfect as we have described! That means you are not guaranteed that the trade you doubled will end as a win and earn your profits. This makes the martingale trading strategy risky to your capital.
- Having said that, the Martingale Trading Method should be applied with more predictable trades. You can know the predictability of trades by using the various technical analysis tools available on the Expert Option platform.
- To apply the Martingale Trading Method, you need an ENOUGH amount of capital. This will ensure you have money to double down your trade size in case of losses. The minimum investment amount in the Expert Option is $1. Have enough capital which can enable you to double the progressive amounts you invest in case you lose trades.
What you need to Trade Using this Trading Method.
For you to use the Martingale Trading Method on Expert Option, you need to do the following;
- Register an Expert Option trading account here https://expertoption.com/
- Download the Expert Option – Mobile Trading App for your preferred platform.
- Practice the Martingale Trading Method on the free $ 10,000 Expert Option Demo account.
- Deposit enough capital into your Expert Option Real account. $100 > prefered.
- Trade on your Real Expert Option account using the Martingale Trading Method to make real profits!!
Placing trades on Expert Option using the Martingale Trading Strategy.
To place trades on Expert Option using the Martingale Trading Method;
- Log in to your Expert Option Trading account.
- Deposit enough capital, at least $100 into your Expert Option Real account.
- Start trading with say $10.
- Hit the UP button if you predict the price to be higher at the expiration of the set time.
- Hit the DOWN button if you predict the price to be lower at the expiration of the set time.
- Wait for expiration.
- If you lose the trade, double your trading amount to $20 and place a trade.
- If you lose again, worry not. Double your investment amount to $40.
- If at the end you win the trade, the returns on the asset being 85%, $40 will be returned to your account and an addition 85% of $40 which is $34 will also be credited to your account!!
- You will not only have recovered your capital but also made a profit.
That up there is a detailed analysis of the Martingale Trading Method!
Now that you have learned what it entails, go-to expert Option, and start practicing.