Binary Options Martingale Strategy Scam or Legit

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Binary Options Martingale Strategy

I already went through a little bit of the martingale strategy in the binary options systems article, but now I thought I would go into it in more detail. I will reveal how the binary option robot uses it, where it was originally invented and how you can take advantage of it, even without using the robot.

Origins of Martingale Strategy

The Martingale strategy was originally developed as a gambling strategy in 18th century France. Since a gambler with infinitive wealth will certainly win, it was seen as a “sure thing” by many wealthy players. Some of them won such large amounts in a short period of time that a number of gambling joints banned the use of the system. The simplest form of it was flipping a coin. If the gambler guessed wrong, he would double his bet every time until he guessed right. If he guessed right, he would repeat his original bet. Let’s see an example:

Martingale Coin Flip Strategy

Original bet: $1

I’m guessing that heads will come up every time.

First flip is tails, I bet $2.

Second flip is also tails, now I have to bet $4 according to the strategy.

I guess right this time and heads comes up.

Now I am winning -$1-$2+$4= $1.

So, if I am able to double the bet each time I’m wrong, I will eventually win the original bet amount when I’m right, even If I’m wrong ten times in a row.

And that’s the beauty of this strategy; if you have the bankroll to double the bet many times it is extremely likely that you end up winning eventually. It is not unusual that gamblers using this strategy will win ten days in a row.

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    Martingale and Probability Theory

    Probability theory says, knowledge of past events never helps predict future events. This means that expected returns will remain the same no matter how many times a particular result has come up. Basically, in a coin toss if you have thrown heads ten times in a row, there is still only a 50% chance that it will come up an eleventh time.

    So, what does that mean for a binary options investor? It means that you should not make assumptions based solely on past results. However, you often get valuable information from results of the past, which can be used in the future to make more profitable investments. But the fact that something has happened often does not mean that it (or the opposite) will happen in the future. You will need other indicators to make such assumptions.

    Martingale strategy originates from gambling

    Martingale Strategy in Binary Options Trading

    Without any software or knowledge, the use of the martingale strategy in binary options trading is not profitable. If you are an inexperienced investor, you will need a reliable option signals provider to help you. You can choose either a fully automated binary option robot (The Real Robot or Binary Hedge Fund) or a signal provider that gives you suggestions, but allows you to make the final investment decision. Let’s go through some of the pros and cons of this strategy.

    Pros of Using Martingale in Binary Options

    • You will rarely have a losing day.If you are one of those people who, more than anything else, hates to have a losing day, using the martingale strategy might be for you. The only thing you need is to find a suitable investment, one where you think you can anticipate the short period value changes. Sixty second options are best for this, start with a small investment and double the stakes if you do not win.
    • It is the most likely way to get a steady income from binary options.If you want to earn a steady income from binary options, this method is more likely than any other way to deliver it. Therefore, this is an excellent strategy for those investors for whom a steady stream of income is the most important factor.
    • If you have a good market analysis based strategy, combining that with the Martingale Strategy can give you extraordinarily good results.Combining these two strategies, you can achieve an incredibly good result. The best thing about this is that you do not even need to have solid knowledge of market movements, your market strategy can be based fully on option signals produced by a robot. If you want to choose the best signals you can use a program like binary stealth, and if you want to also leave this task to the robot, you can use, for example, The Real Robot, which you can get completely free by clicking the button below.

    Cons of Using Martingale in Binary Options

    • When you lose, the losses will be bigger than usual. Even if losses are less common using this strategy, they will come at some point. Some might lose the first time, while for others it may take dozens of trades. It all depends on how lucky you are and the accuracy of the signals you are using.
    • If you try to follow this strategy without a robot or investment knowledge, the results can be catastrophic.Even though I have warned many times, some still want to try the Martingale Strategy without any knowledge or software. Why do some people do this? The advantages of this strategy are so attractive that even though losses are likely, many still want to take the risk. Even if you try the Martingale strategy cold, you can still have many winning days in a row.

    The most important factors when choosing a broker for the Martingale strategy are 1. payout percentage, 2. the possibility to start with a small investment amount, and 3. the possibility to raise the stakes if needed

    Best Brokers for Using the Martingale Strategy

    When you are choosing a broker for this strategy, there are three extremely important factors that must be taken into account. First you have to be able to start with a small initial investment. Secondly you must be able to raise the investment amount if necessary. The third important factor is a good average return rate. I took all these factors into consideration and calculated the four best binary option brokers to use if you want to try the Martingale strategy.

    1. IQ Option has the lowest minimum deposit ($10) and the best trading platform. They also have great bonuses. They came fourth because of the lower number of trading assets.

    Conclusion

    The Martingale Strategy is one of the best strategies for binary option trading, if you use it with purpose and have sufficient information about how to take advantage of it.

    On the other hand, results can be disastrous if you don’t know what you are doing. Therefore, it should be used carefully, only in a favorable situation, unless you are willing to take the risk that you lose your invested assets, for example, when you immediately need $1,000 and you only have $600. If having $600 is no better than $0, then it might be worth the risk.

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    Author: Michael Allen

    Michael Allen is the main author at www.binaryoptionrobotinfo.com. He holds a PhD in Economics and has worked in investment banking for 24 years. View all posts by Michael Allen

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    Michael Allen

    Michael Allen is the main author at www.binaryoptionrobotinfo.com. He holds a PhD in Economics and has worked in investment banking for 24 years.

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    Part 3: Money Management – Martingale (Yes/No)

    There is already one article on our web site about martingale. You can look at it here: Martingale strategy. In this article, we will take a better and more professional look at this system from the traders point of view.

    As many of you already know, the martingale system has been created by gamblers and lies in the raising of bets (trade amounts) round after round, to achieve the increase in the number of chips on the players table.

    Put into terms of binary options: After every unsuccessful trade, we double the amount with which we trade. If we win – profit will be more than enough to cover previous losses. If we lose – we continue in the same spirit.

    How to use martingale in binary options trade

    Simple, right? But we must take into account a few factors, such as profit. Roulette, where this system was developed, has a 200% payout after winning. For binary options, it is around 180%. Therefore, it will not be enough to multiply the sum by two, but by 2.3. Here is a table showing how would this system work in case of $ 10 initial trade.

    Trade no. Trade amount Total trades Total profit Net profit
    1 $ 10,00 $ 10,00 $ 18,00 $ 8,00
    2 $ 23,00 $ 33,00 $ 41,40 $ 8,40
    3 $ 52,90 $ 85,90 $ 95,22 $ 9,32
    4 $ 121,67 $ 207,57 $ 219,01 $ 11,44
    5 $ 279,84 $ 487,41 $ 503,71 $ 16,30

    Now it still looks like we took the trading of binary options not as a regular possibility of earning money, but rather as a gamble. Let me tell you something that will change this view.

    How to implement this strategy so that we “can’t lose?”

    I suppose that if you want to use a money management plan, you already have a strategy that is more or less profitable and you want to deal with occasional loss. Traders who have already tried a couple of trades and are somehow still at zero will certainly appreciate this system. Here are some tips on how to achieve the proper functioning of money management plan.

    • Never start trading with more than 2% of your trade account. If you have $500 in your account, do the first trade with $10.
    • If you have three unsuccessful trades in a row, stop trading for the day.

    Simulated results

    Here I come up with a log which tracks how trading with this strategy could look like. Purely for show and understanding of the system.

    Trade $10 -> Profit $8 (Total +$8)
    Trade $10 -> Profit $8 (Total +$16)
    Trade $10 -> Loss $10 (Total +$6)
    Trade $23 -> Profit $41 (Total +$24)
    Trade $10 -> Profit $8 (Total +$32)
    Trade $10 -> Loss $10 (Total +$22)
    Trade $23 -> Loss $23 (Total -$1)
    Trade $53 -> Profit $98 (Total +$44)
    Trade $10 -> Profit $8 (Total +$52)
    Trade $10 -> Loss $10 (Total +$42)
    Trade $23 -> Profit $41 (Total +$50)
    The end of the trading day.

    The trader had $500 in the beginning of the trading day and $550 in the end, which is an increase of 10%, while the success rate was just over 60%.

    To sum it up, I have prepared a list of all the pros and cons of using this money management plan. Have a look at it below!

    Pros

    • If you use Martingale along with some already working strategies, we can easily delete losses from our account and focus only on profitable trades.
    • Very easy to use and, if rules are observed, probably the best money management plan in regards to complexity-performance ratio.

    Cons

    • If the trader does not have a good strategy, it is likely that it would be better to execute trades with the same amount instead of increasing it.

    What is your opinion on using martingale with binary options? Do you think it should stay in the casinos? Tell us something about it.

    More info about martingale

    More information can be foun here:

    Author

    More about the author Step

    I’ve wanted to build a business of some kind and earn money since I was in middle school. I wasn’t very successful though until my senior year in highschool, when I finally started to think about doing online business. Nowadays I profitably trade binary options full-time and thus gladly share my experiences with you. More posts by this author

    4 Responses to “Part 3: Money Management – Martingale (Yes/No)”

    An amazing article. It’s nice to read a quality blog post. I think you made some good points in this post perfectly

    I read somewhere on the net that it might be a good strategy.. wait….

    How safe is the Martingale strategy in binary options (forex)?

    a gMkC d GFC eWM b FM y k s R R a z g b i Bad n Sf g EWe jB B VtYud u Dm l rDTF l nukz , mJgC aW L P L rcwB C Trg

    It’s gambling. How safe is gambling?
    Using Martingale, you will simply double up every time you lose in order to cover previous losses. It’s not a strategy, it’s not a decent money management. In fact, it was presented by affiliates and brokers to make people lose money faster. It is pure and simple gambling. I have seen those stupid videos on YouTube telling people to keep doubling up and that it is “guaranteed that you will win the fifth or whatever trade”. What? How can they guarantee something like that? Because they are full of BS. End of story.

    You can however use winning Martingale. .

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