Over the entire existence of binary options, many trading strategies and systems have been invented that allow you to quickly increase your deposit at fairly high risks. And one of such systems is Martingale.
This system allows you to increase your deposit in a very short time, following one simple rule - doubling the trading volume on each transaction. But the obvious disadvantage of this approach is the high probability of losing the entire deposit during a series of unprofitable trades. Therefore, the Martingale system was modified to reduce risks and after adjusting the trading rules, a new method of increasing the deposit appeared - Anti-Martingale.
What is Anti-Martingale?
The Anti-Martingale system, like Martingale, was borrowed from gambling enthusiasts and eventually gained great popularity among Forex and binary options traders.
The Anti-Martingale system has another name - Parlay. But this name is more often used by English-speaking traders.
The essence of the Parlay system
The Parlay system, as mentioned earlier, was created as a replacement for the Martingale system, since in Martingale it is necessary to double the trading volume after each losing trade. Such aggressive money management can ultimately lead to a rapid loss of all capital, and in order to somehow reduce risks during trading, some traders use Anti-Martingale in binary options. When using Anti-Martingale, the trading volume also increases by 2 times, but not after each losing trade, but after each profitable one.
Despite the fact that when using Anti-Martingale in binary options, capital increases more slowly, trading risks also decrease and the chances of saving a trading account become many times greater.
Trading rules using the Anti-Martingale system
The first thing you need to decide is the trading volume that will be used when trading binary options. Future earnings and losses will depend on the size of the transaction, so you should not use a very large volume. For example, the Pocket Option broker has a minimum investment amount per transaction of only $1, which will be quite enough to get started.
Once the trader has decided on the amount, you can start trading. To increase your chances of making a profit, you can use both binary options trading strategies and indicators . It will also be convenient to use the AntiMartingale calculator to calculate the correct amount of future transactions.
When making transactions, you need to follow some simple rules, so when making a profit you need to:
- The next transaction was made with the trading volume doubled and so on until a loss was incurred. For example, the first transaction with an amount of $1 brought a profit, then the second transaction is made with an amount of $2 and after making a profit, the third transaction will be made with an amount of $4 and so on.
If you receive a loss, you must:
- The next trade was made with a minimum trading volume until a profit was made.
Note: although this approach does not completely remove risks from trading binary options, it allows you to reduce them and increase the life of your trading account.
Money management in binary options trading using Anti-Martingale
Since a series of profitable trades can be more than 4-5 in a row, the trading volume can become large, and one losing trade will negate the entire trade. Therefore, in addition to using minimum amounts for trading, you can limit the number of increases in volume after making a profit, and to reduce risks you can use not a double increase in the investment amount, but adding the initial amount to each profitable transaction:
- The first trade is $1.
- The second trade is $1 + $1 = $2.
- The third trade is $1 + $1 + $1 = $3.
- The fourth trade is $1 + $1 + $1 + $1 = $4.
Note: it is worth noting that if you constantly increase the size of the transaction, then sooner or later with 100% probability it will bring a big loss. Therefore, you should not use a series of more than 3-4 magnifications.
Recommendations for the successful use of Anti-Matringale in binary options
To increase your chances of making a profit, you can follow some tips that will be useful in trading using Anti-Martingale:
- It is worth trading only in currency pairs, as these are the most universal tools for trading binary options.
- Trading should be done from 8:00 am to 6:00 pm, as during the Asian trading session volatility is very low and most strategies will not work correctly.
- Before the news comes out, it is better to refrain from making transactions. You can use an economic calendar to track news.
- You should only choose options on currency pairs, which give at least 75% profit per transaction.
- Expiration should be used depending on your trading style and trading strategy.
- The trading strategy that will be used together with Anti-Martingale must be very accurate and time-tested, since if its profitability is only 55-60%, then it is better not to use the Anti-Martingale system.
One of the ways to use trading using the Anti-Martingale system in binary options with the simplest trading strategy
One of the ways to trade using the Anti-Martingale system is to make trades after the signal on each subsequent candle. This approach allows you to make a large number of transactions after one trend signal, and as you know, in a trend the price tends to go in one direction for a long time. And for example, we can consider trading binary options using trend lines.
After finding a trend area, you need to wait until the price reaches the line and then buy an option:
Since in our example the trend is downward, it would be necessary to buy a Put option, and the transaction would bring profit. Taking into account an investment of $1, we would receive a profit of $0.75 (75%).
After this, we increase our trading volume and now we need to buy a Put option with a transaction amount equal to $2:
But in this case, a loss of $2 would have been received and on the next candle we buy the option again with an amount of $1:
After making a profit, we buy the Put option again with an amount of $2:
We would have made a profit of $1.5 on this trade.
To summarize, after making all trades we would have made a profit of $2.25 and a loss of $2, giving us a total profit of $0.25. Of course, 25 cents is a very small profit when trading, but these were just examples of possible trades to show how the Anti-Martingale system can be used in binary options and with a larger number of trades the profit can be much greater.
Pros and cons of trading using the Anti-Martingale system
There are some pros and cons of this system that you can consider. This will give an understanding of whether it is worth using Anti-Martingale in binary options.
The advantages include:
- Having a higher chance of saving your deposit compared to Martingale.
- Flexible money management.
- Simple rules of application.
- Versatility.
The disadvantages include:
- The presence of risks that are greater than in classic binary options trading with strict money management.
- Longer deposit increase compared to Martingale.
Conclusion
As you can see, even in “overclocking” systems you can try to reduce risks while minimally sacrificing profitability. But do not forget that when using this approach, it is necessary to test trading on a demo account in order to assess possible risks and situations, and only after that switch to a real account. A proven broker with demo accounts for testing and many other advantages can be found in our rating of binary options brokers . We wish you successful testing and trading!
Can't figure out how this strategy or indicator works? Write about it in the comments to this article, and also subscribe to our YouTube channel WinOptionSignals , where we will definitely answer all your questions in the video.
See also:
How to trade on weekends. What are OTC quotes?
Will binary options be closed in Russia in 2020?
What is the best way to fund your account with a broker? TOP 10 ways
To leave a comment, you must register or log in to your account.