Why Trading the Martingale Strategy is a TERRIBLE Idea

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We discuss the Martingale money management strategy and explain why it's one of the most stupid money management strategies.

💬 If you’d like to get in touch, you can reach us on social media or leave a comment on this video - we read all of them and try to respond to as many people as possible.

[mattroy]

I think the martingale is a really good strategy if you want to give back to the world.

[TheNewCarryTrade]

I'm going to have to vote this one down Nick...I have infinite money and I'm trying to double it by trading ;-)

[verkaamartis]

Martingale works if you know where to kick in. Also, you don't have to double the amount and as others said, don't go over the 4th level. I am using the strategy and sometime double my account and withdraw the money. It could be poison if used incorrectly.

[nila]

Your video is great. But Martingale Strategy is a powerful and proven strategy for winners, who are having talents and knowledge in trading. Martingale is not for stupid gamblers. Martingale is for intelligent traders who are having 70% win rate. Who still wants to follow Martingale even after the 5th trade loss. Then he is not a trader. He is a looser. Martingale should be used upto 4th level to recover the losses. Even 5th trade is lossed, there is a mistake in your trade decision. Trend MUST be wrong. Those who follow the trend never loose 5 consecutive trades. Martingale is to be used to recover 1st, 2nd or 3rd level loses. Above 4 or 5 losses means STOP trading. Learn and trade with martingale, then you will never loss.

[FinancialAlchemy]

If you trade a prop account, martingale is a valid strategy. The goal is to get a payout, not necessarily to be 100% profitable all the time. If your max daily risk is 5%, you can martingale and scalp and easily make 5% without hitting your 5% limit, especially on currency pairs that don't trend (eurchf), etc.

[nullx]

nice one !!
however i do double down on occasions .. as example my max risk is at 2% ..
first trade is 0.5% risk .. and the next one is then 1% risk .. if both fail i'm within the risk window
if it works out i'm up at least +0.5% .. so for me it's more a "breaking even a trade" thing .. but keeping the max risk in a clear sight ist most important.

[cerebrumexcrement]

I first heard about this strategy from this one dude who liked to brag about how good he was at poker. Never saw someone lose so much money in one sitting.

[lesprit.rebelle]

Martigale works in trading, but not with a ratio I use a ratio 10 (stoploss) /30 (take profit)....Or 1/3 if you like....Which makes a huge difference, and increase the number of attemps.

[imadable]

i think that if we change the risk reward ratio from 1:1 to 1.5:1 or more we may have a good result

[abi]

Martingale strategy is actually effective if you follow the strategy up to 4 trades and on the same trade. The way you described the strategy was totally different from the way I learnt it, I was told never to do more then 4 trades when using the martingale strategy and that all of the trades should be on the same currency/commodity. But yeah the Martingale strategy you described is more well known amongst gamblers in casino's and I totally agree with you in saying that strategy is terrible for trading.

[knighty]

Martingale can work, if manage professionally.

[the_kotes]

Yesterday i wondered how good this strategy is. Today you published this video...Awesome!

[matthewwynne-jones]

Wait how does the probability rise over the course of a year? It's an individual event like tossing a coin- just because you got a heads on the first flip doesn't mean your odds of getting a tails increase. Right??

[joshuaaidoo]

am not using the martingale strategy per say, i like the fact that it helps me manage my funds in trading what amount to trade per time, thats why i like it, i use my own build strategy which i learnt from several strategy with martingale strategy as a weighing scale . and boy am making consistent profit

[uk_reef_bro]

how do you feel about the winning martingale strategy? eg starting balance of £100 bet 10% of it £10 if it wins you get £18.60 at 86% profit the next bet will be £18.60 if that wins you get £34.59 and so on when you reach £200 balance start again with 10% £20

I'm hoping to try it out in demo account tomorrow.

nice videos I look forward to hearing from you

[JedidiahIsrael]

Well said mate!
I've doubled my capital using this Martingale strategy only to loose all of it when the market went against me. As you've said, I had to learn the hard way!

[nayanmipun]

Martingle is applicable in short trends only, it should be applied in 1 minutes charts with 1 hour charts for monitoring, if the martingle is not closed in the 1 hour candles for trend long enough that if not recovered immediately the martingle would go more floating losses close the positions and reopen positions again after 6 hours

[prajwas]

A blind martingale will fail yes. It depends on the levels you try to double down each time.
1 hedge your trades. Get a long term put option for when the market turns against you.
2 look at the historical drops. There will be a range. Then define the percentage of doubling down when it's down in the range.
This has worked for me. Cost me a ton of money to get it right

I like this better than blindly buying 10k worth of stock.

[epicxgamer]

A few days ago I found out about binary options and most reviews were pretty good so I started to use a practise account before I got into it with real money. After a few days I realised that those brokers were scams as they pretend to give bonuses sometimes up to 100% of what you put in but if you click on the bonuses they make it so you won't be able to withdraw your money until you do a certain trades and by that point you provenly lost all your money

[rikkestergaardpetersen]

3 years ago 24option made me loose 17000 euro this way ;)