The Martingale method is successfully used by many traders to compensate for losing trades. The task is this: by increasing subsequent bets, cover the losses of a series of previous ones plus make a profit in the amount of one profitable contract. This approach is impeccable from a mathematical point of view, but it carries considerable risks for the investor. A constant increase in rates, carried out in geometric progression, threatens to quickly drain all the money on the deposit.
Features of the Martingale calculator
The calculator will be useful for those who prefer to use the Martingale method in their trading. With its help, a trader will quickly determine the size for each bet from a series of binary options transactions.
The larger the minimum contract amount, the higher the risks for the deposit. Small bets guarantee a certain “safety cushion”, reducing the likelihood of quickly losing all the money in your account.
How to use the Martingale calculator
Before using the online calculator, you need to know some basic data. First, it is important to find out from history what the longest losing series of trades was observed according to your trading strategy. Next, enter the information in the following forms:
- minimum bet amount (for example, $10);
- option profitability (for example, 80%);
- possible number of unsuccessful bets in a row (for example, 6)
According to the strategy, we always make the first trade with the least risk: no increase in bets. If the option closes in positive territory, we buy the contract again for the same amount. If there is a loss, the next trade should be equal to $23. A successful bet will not only cover the previous minus, but will also bring an income of $8. Having made a profit, we again bet the smallest amount - $10.
The Martingale method for binary options provides for the extraction of income in each of the subsequent transactions in the amount of 80% of the initial transaction. If you have a lot of money, then the strategy is very profitable and reliable, but most traders cannot afford an unlimited deposit. For the average investor, a losing series of transactions should not exceed three in a row, then he will be able to evaluate the advantages of the method.
An online calculator using the Martingale method is an effective aid to traders for profitable binary options trading. It will be useful for both beginners and more experienced market participants who have successfully tested this method.
See also: Anti-Martingale Calculator
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