Many traders continue to search for the “grail” - an absolutely win-win approach that brings only profit. How realistic this is remains an open question.
An effective strategy for M15, based on simple indicators, is becoming increasingly popular among foreign investors. Martingale elements allow you to successfully get rid of drawdowns and achieve almost break-even trading.
Features of the strategy
Suitable for any currency pairs.
Recommended timeframe: M15.
Expiration time: 15 minutes.
Trading session: any
Recommended brokers: Quotex , PocketOption , Binarium .
The strategy uses 3 popular indicators:
- BB Alert Arrows is a regular “switchman” that gives recommendations using pointers pointing up or down. It also issues alerts with a built-in MT4 alert.
- Heiken Ashi is a standard instrument that displays the dominant trend in red (“bearish”) or green (“bullish”) color;
- MBFX Timing is a useful oscillator that shows the prevailing trend in the market at the moment. Green color - price increase, red - decrease, yellow - no expressive movements, quotes are in a flat.
How to make deals
We purchase a Call option if:
- a green arrow appears on BB Alert Arrows;
- Heiken Ashi displays a green candle;
- the oscillator turns green and indicates an increase.
We select the Put direction if the following conditions match:
- the indicator draws a red arrow;
- a red candle is formed on Heiken Ashi;
- MBFX Timing is red and starting to decline.
Application of Martingale
The Martingale method significantly allows you to reduce losses and increase your deposit. But for this you need to use it correctly, otherwise only the first few bets will be profitable.
The amount of each bet in the series depends on the following parameters:
- option yield; the lower the profitability, the faster the contract amount will have to be increased;
- The main task of a trader is to get maximum profit or break even. A large bet size is dangerous because it increases the risk of losing the deposit.
Let's look at the procedure for calculating the Martingale knee using a specific example. Let's say the initial bet is $10. The profitability of the transaction is 75%. If the trader intends to make a profit at each stage, which is equal to the amount of income from the first bet, then three transactions in a row should look like this:
Bet No. 1 = $10. Income: $7.5; loss: 10$
Bet No. 2 . The profit should be equal to $7.5, but it is also necessary to cover the $10 loss after the first unsuccessful trade. Thus, we need an income of $17.5. The bet amount is 17.5*(1/75%), i.e. $23.
Bet No. 3 is calculated in a similar way. The loss after the first two trades is $10+$23=$33. To cover unsuccessful financial transactions and make a profit in the amount of the minimum income ($7.5), the bet amount must be $54. If the transaction is successful, we will receive an income equal to $40.5, which will allow us to gain profit.
Examples of transactions
If you strictly follow the recommendations of the strategy, then almost all options will be “in the money”.
Unfortunately, the BB Alert indicator has a significant drawback: it is redrawn, so you should not immediately enter the market after the arrow appears. In the graph below, detected redraws are highlighted in yellow (in testing mode) and pink (in history).
Considering the situation with three bets, visually indicated on the chart, we find the third transaction in a row, which brought a loss. However, the next contract was in the money because the trader increased the Martingale bet amount and covered the entire loss.
An unsuccessful series of three bets in a row is very rare for this strategy, but if this happens, it is better to accept the loss and start the calculation over again - from the first bet.
Useful tips
To avoid losing all your money, always follow these recommendations:
- do not increase the number of Martingale “tribes” above three;
- Practice your skills on a demo account for at least a month. This will help identify all the shortcomings of the system and correct it;
- always take into account the timing of news releases: do not buy options 30 minutes in advance. before the publication of important data and immediately thereafter;
- plan your actions in advance. A trader’s trading plan is a way to optimize trading and reduce risks;
- remember money management.
Download Martingale strategy files
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