Anti-Martingale Forex Money Management System
Many Forex traders use in their work Martingale principle. Even more market participants have heard of it. We will not talk about the advantages and disadvantages of this method. Instead, we will note that it provided an opportunity to develop a system of capital management, which was called "Anty-Martingale.
The essence of money management system on "Anti-Martingale
In contrast to the classical Martingale system, which implies increasing the volume of a position at a loss, the Anti-Martingale money management system is based on the principle of increasing the volume of profitable and reducing the volume of unprofitable positions.
The standard scheme of Anti-Martingale system application provides for doubling the volume of profitable position, but the number of increases can be arbitrary. The Anti-Martingale Money Management System has successfully proved itself at the foreign exchange market and is very popular among professionals as well as among beginners. traders.
The principle of the Anti-Martingale system is as follows. Having correctly determined the entry point into the market, as profitable positions are closed, the trader opens new positions in the same direction, increasing their volume. The trader independently determines the levels at which profits on positions are fixed.
The first increase in the volume of an open position follows not after the first profitable trade, but only after the second. As noted above, the volume of a new position increases twofold. Thus, increasing the volume of positions turns a series of profitable trades into a significant increase in the deposit. You should always take into account the size of your deposit, spreadsThe volume of the first transaction should be calculated correctly. The volume of the first transaction should be calculated correctly, it is not recommended to open more than three transactions at a time.
At a loss, the trader gradually reduces the volume to the original volume, which allows, in case of an erroneous detection of a trend or price reversal, to reduce the loss of funds on the deposit.
Separately, it should be noted that the increase in the volume of transactions can not last indefinitely. As a rule, the volume increases for 2-3 steps, and then returns to the level of the initial position. Since trend not eternal, this tactic gives some insurance in case the trend changes.
Advantages and disadvantages of the Anti-Martingale system
The main advantage of the Anti-Martingale Money Management System on the Forex market is that its use makes it possible to significantly increase the deposit in the shortest possible time, without any special tricks. It is used in a variety of strategies: trading with fixed position, trading with fixed percentage, etc. A series of profitable trades brings tangible profits, while the risk, in case of a price reversal, is minimal, since the volume of positions does not increase with losses.
The disadvantage is the application of the Anti-Martingale money management system only in the presence of a steady trend. At FlatUsing Anti-Martingale, you will not make money because profitable trades will alternate with unprofitable ones.
A prerequisite for using the Anti-Martingale system is the precise calculation of the place of entry into the market, the volume of the initial position and the steps of increasing the volume of the subsequent position. The volume increase coefficient directly depends on the size of the deposit.
In conclusion, it is worth noting that despite its apparent complexity, the Anti-Martingale money management system is widely used by Forex traders. Classical rules are good, but for more effective use, it is necessary to accurately calculate the parameters of the system for your deposit. And, of course, you should not be greedy. No Anti-Martingale will help a greedy trader who wants to get rich instantly.