Jump to content


Next High Impact Market News Event:
Retrieving events...


Toggle shoutbox The Traders Chat Open the Shoutbox in a popup

@  Shahram : (22 September 2019 - 10:20 AM) Does anyone has experience with dukastcopy?
@  Shahram : (22 September 2019 - 10:18 AM) dukascopy
@  gabrielscama... : (21 September 2019 - 12:25 PM) mt5
@  Tripack : (21 September 2019 - 12:12 PM) Heh
@  Cookiebrawler : (17 September 2019 - 04:27 PM) MegaMoney 90%
@  aasir : (16 September 2019 - 10:25 PM) Binary Triumph
@  traderpusa : (10 September 2019 - 01:35 AM) that was my bmw lol. E60.
@  Monoaldo : (10 September 2019 - 01:34 AM) E60
@  manfloy : (09 September 2019 - 11:12 AM) well said.
@  traderpusa : (09 September 2019 - 11:07 AM) at least for the moment, china will hold back because of economic conditions. My guess is they want to involve PLA but simply are not in a position to do so for the moment.
@  traderpusa : (09 September 2019 - 11:05 AM) well, regardless of any agreement between uk and europe, there is still nato is trump doesn't blow it up lol
@  manfloy : (09 September 2019 - 11:04 AM) I am really worried about HK if the PLA phase in this can interrupt the entire chain between FX liquidity and current import / export countries. I understand that we have a bunch of corporations exposed to China, now believe that 99 percent of them are stable in HK because they have a high law. If the PLA gets in, they'll substitute this economic centre with a singapore.
@  manfloy : (09 September 2019 - 11:04 AM) Yeah, they're really a very significant player. I am informed that there is also a lot more than economic, for instance there are a number of military agreements agreed between the GB and the EU, which is serious.
@  traderpusa : (09 September 2019 - 11:02 AM) the UK being part of the EU GDP figures, but not part of the Euro only makes things a bit complicated on how to interpret numbers for trading purposes.
@  traderpusa : (09 September 2019 - 11:00 AM) of course one needs to focus on US being the biggest economy but UK is still up there. https://gyazo.com/42...39df1c7c58d9221
@  manfloy : (09 September 2019 - 10:56 AM) I'm focused on the US, so I don't spend so much on the GB, I'm supposed to study it well since 2015, but something has altered worldwide, literally, it's an enormous step in the world's liquidity and global system, modifications are nice, but they're really colorful.
@  manfloy : (09 September 2019 - 10:56 AM) thanks good reading
@  traderpusa : (09 September 2019 - 10:53 AM) As to China, read this over the weekend : https://apnews.com/6...f75f013bf54e6a9
@  manfloy : (09 September 2019 - 10:51 AM) Spectacular indeed lol, this is huge to be honest
@  traderpusa : (09 September 2019 - 10:47 AM) it's gonna be interesting. MP's are leaving the sinking ship and now also Bercow has resigned. Gonna miss this guy lol

Photo

Martingale in Binary Options ! Yes or No ?

binary options martingale money management martingale strategy

  • Please log in to reply
16 replies to this topic

#1 blackfoil

blackfoil

    Member

  • Members
  • PipPip
  • 402 posts

Posted 17 January 2016 - 05:24 AM

I have enough experience to certify a few points i have faced with martingales , would like to share them for those who are confused.

 

1. Trading binary options need a smarter martingale theory and not the one used for roulette and gambling, as the odds are in the favor of the broker.

 

2. Set a max limit  to the no. of martingale level(s) , max should be 4.

 

3. Even if everything seems to be amazingly fine , keep a fact in your mind that you will and will lose at a certain time (also a part of our plan).

 

4. Summing up all levels of stake should be an amount which you can afford to lose at least thrice and still have something left in your balance to help you when needed.

 

5. Broker problems , internet issues etc can screw things up within a second , causing you a late entry or maybe a no entry at certain time.

 

6. Last but not the least , go for martingale strategy covering all points above , if and only if you really have something which works nearly 99% of the time with the limited amount of martingales.

 

 

So martingale when done right and in a limit can be very profitable , but also it carries a huge risk , so go ahead only when you have something you can afford to lose (where your fault will be none).


  • -el-, dkomarov and abiel02 like this

#2 ahmetesk

ahmetesk

    Member

  • Members
  • PipPip
  • 152 posts

Posted 17 January 2016 - 05:27 AM

No.


  • blackfoil likes this

#3 happyjas

happyjas

    Member

  • Members
  • PipPip
  • 124 posts
  • LocationDieppe, NB

Posted 17 January 2016 - 06:29 AM

Yes. Refer to No.6 of Post #1.


  • blackfoil likes this

"We look at price, levels and trend with fundamentals and that is it.  No monkey business." 

http://www.binaryopt...read/?p=142941 traderpusa

 

"you know I'm not interested in creating a thread and make 1000 pages out of it like some, it's just to share the basic idea" (28 June 2016 - 07:55 PM) - Tripack

"So its not like a strategy that has to be followed down to the T where everything has to meet in order to take a trade. Its more if you see a setup, check what else can confirm and help you in making your decision to take the trade." http://www.binaryopt...n-etc/?p=123198 - tradesmart


#4 dkomarov

dkomarov

    Member

  • Members
  • PipPip
  • 175 posts
  • LocationBig Russia's Motherland

Posted 17 January 2016 - 06:33 AM

I would only use for short term to boost my account. Never for long term.
  • blackfoil likes this

"It's how u handle the losses and the setbacks that will ultimately determine your success as a trader"


#5 Tripack

Tripack

    Trader

  • Moderators
  • 2,503 posts

Posted 17 January 2016 - 07:00 AM

I sometimes use "anti-martingale" or "positive martingale" with profits only. The idea is to snowball profits into more without risking more capital. Of course you've got to generate some profit to start with.
  • BinaryOptionsTutordotcom, neddihrehat, happyjas and 3 others like this

#6 Martini1209

Martini1209

    Member

  • Members
  • PipPip
  • 120 posts

Posted 17 January 2016 - 07:04 AM

I agree with what Tripack says in terms of martingale type, personally I like to add half the profit of a trade onto the next one and then bank the rest. Mathematically speaking a losing martingale is a bad idea, you're risking more to win the same/less - it doesn't make sense in the long run.

With regards to martingale in general...you should be focusing on an actual strategy that works well first, as opposed to first looking at what account size you require to be able to cover the flaws in your strategy. People talk about the magic number being 55%-60% accuracy depending on broker, but this is the break even amount, you would be making pitiful profits just trading this, and also spending half your day staring at charts. Why not find a high probability strategy, use  greater position size(5% of your account on one trade, as opposed to 5% being a sum of exponential trade sizes), and take an hour each day to make one trade. Sorted! 


  • BinaryOptionsTutordotcom, blackfoil, dkomarov and 1 other like this

#7 ghogreentea

ghogreentea

    Member

  • Members
  • PipPip
  • 309 posts
  • LocationSingapore

Posted 17 January 2016 - 07:06 AM

No I will not martingale. 

 

Because martingale money management requires me to start small, in order to multiply 4 times or more. Can you start martingale with $100? Well by the time you reach the 4th trade, your finger might be trembling. 

 

Start small = win small most of the trades. You can spend 1 month winning $1,000 and then losing it within an hour with a string of losses. There will never be that sense of assurance. Sure you can limit the times it multiplies, but 2 strings of 4 losses = 1 string of 8 losses, in fact it could be worse than that. Because chances of having it wrong 8 times is slimmer than being wrong 4 times in a row.

 

A good signal to me is one that can earn at least 65% ITM. With such a win rate, the expectancy on each trade = 65% x 0.7 - (1-65%) x 1 = 10.5%. With a positive expectancy, I just have to bet huge equal size lots and I know I will make tonnes of profit, without the fear of getting wiped out. So with an expectancy of 10.5%, I just have to bet $100 per trade to earn $10.50 per trade in the long run. Very simple. If I bet $1,000 per trade, then I expect to make $105 per trade over the long run. With such a system, there is no need to martingale. It's already massively profitable why take the risk?

 

If you observe, people only martingale when they have a lousy system. With a good system there is absolutely no need to martingale.

 

Anyway just my view, martingale is a recipe for disaster. 

 

My favorite money management is to trade say 1-5% of capital per trade.


  • Tripack, holyfire, neddihrehat and 3 others like this

#8 Tripack

Tripack

    Trader

  • Moderators
  • 2,503 posts

Posted 17 January 2016 - 07:10 AM

Typically it requires discipline in the sense of stopping your day early enough when you don't generate profits and live with it, while "letting run" your profits on a good day. It's not an easy task but if you stick to a solid plan like this with an ok strategy you can minimise capital risk while maximising gains when the context is in agreement with your strat.
I.e. if you have a trend following strat you will gain a lot on trending days and be stopped on ranging days.
It's also important to "bank" your gains, so that you don't snowball for too long. Once the context change you'll notice soon enough and still end your day with a profit hopefully.
  • neddihrehat, happyjas, blackfoil and 1 other like this

#9 blackfoil

blackfoil

    Member

  • Members
  • PipPip
  • 402 posts

Posted 17 January 2016 - 07:48 AM

Haha that's why i said if and only if you can afford to lose a certain sum of money then you should risk it , if your fingers tremble on the higher levels then definitely its not for you :) , for thrill go have a roller coaster ride :D



#10 randy1953

randy1953

    Member

  • Banned
  • PipPipPip
  • 1,263 posts
  • LocationWashingston, USA

Posted 17 January 2016 - 12:19 PM

Typically it requires discipline in the sense of stopping your day early enough when you don't generate profits and live with it, while "letting run" your profits on a good day. It's not an easy task but if you stick to a solid plan like this with an ok strategy you can minimise capital risk while maximising gains when the context is in agreement with your strat.
I.e. if you have a trend following strat you will gain a lot on trending days and be stopped on ranging days.
It's also important to "bank" your gains, so that you don't snowball for too long. Once the context change you'll notice soon enough and still end your day with a profit hopefully.

I think Tripack nailed it. Traders have a problem with chasing the money it's a fact. Now just think if you took a hit to the 4th level on MG. Seriously are you able to walk away and feel Ok to trade another day? I know a trader that is showing a solid $200 a day on a system similar to a OB/OS trading 30 secs. This is the way he trades that system. He trades up to 6 pairs depending on what the broker allows during the time of trading.

 

He splits up his trade amount ($30) into 2 parts the 1 st trade is $10 if he wins he still trades with $10 on the following trades if he lose the next trade is $20 if he loses that trade meaning he lost 2 in a row he stops trading that pair for the day and so forth.

It seems to be working for him so far. He normally stops his trading after 3 hrs for the day


  • tiap, blackfoil and ac44 like this

#11 paki786

paki786

    Member

  • Members
  • PipPip
  • 69 posts

Posted 19 January 2016 - 03:18 AM

I would only use for short term to boost my account. Never for long term.

Martingale is riskier in long term and I should avoid it either in the shorter terms.


  • blackfoil likes this

#12 scoobytrade

scoobytrade

    Member

  • Members
  • PipPip
  • 74 posts

Posted 19 January 2016 - 03:31 AM

I have traded using MG (as I am sure many people here have in the past). You can have great times and feel it will never fail. But in the space of a few minutes it can wipe you out. I might MG now with max of 3 steps but with many other influences effecting the trades. 


  • blackfoil likes this

#13 krakkon

krakkon

    Member

  • Members
  • PipPip
  • 276 posts
  • LocationTorontarian, Ontario, Canada

Posted 19 January 2016 - 08:26 PM

I would say "No"  and "Yes"

 

most people here knows that I "Hate MG", even though I hate it, I have to admin I still use it in certain situations.

 

and I agree with black, in all of his points, because they make sense period. and I do follow these points when I use MG.

 

now, most of you knows that I use Extreme Nemesis on my trades, every time I start a trade or a signal shows up I only spend a set amount of cash, depending on my balance.

 

if I have $20, I will spend about $1 per trade. in this situations I never MG.

 

but, there are few situations where a particular "pattern" show up that involves 5 candles - they rarely show up - this pattern shows up after I lose on my regular trade, if the that pattern show up on then next few candle I will probably MG that pattern, because I know it will never passed the 2-steps if the candles still in the original Extreme Nemesis conditions.

 

in a way I do not trade using MG to recoup my loses, but rather to trade on a rare conditions.

 

and that's how I recommend people to use it.


  • blackfoil and scoobytrade like this

ADMIN REMOVED MY AFFILIATE LINK. <===== BAD ADMIN :P

My Strategy: 60s Binary Options Extreme Nemesis V3

 

Starting balance: $10

Goal: Increase the balance by 50% every week

 

1st goal    : $15 --------------- Achieved 

2nd goal   : $23 --------------- Achieved 

3rd goal    : $34 --------------- Achieved 

4th goal    : $51 --------------- Achieved 

5th goal    : $76 --------------- Achieved

6th goal    : $114 ------------- Achieved

7th goal    : $171 ------------- Work in Progress 

 

Follow me on my Journal: http://www.binaryopt...-krakkons-blog/

 

==============================================

Meet other traders, from Toronto, Ontario Canada, Follow the Topic:

 

Link: http://www.binaryoptionsedge.com/topic/2023-toronto-meeting-suggestion/#entry56283

Meetup Group: http://www.meetup.com/http-www-binaryoptionsedge-com/

 

 


#14 Zombietrader

Zombietrader

    Newbie

  • Members
  • Pip
  • 3 posts

Posted 21 January 2016 - 04:50 PM

Martingale can be used if you don't mind starting with 1$ positions.

If you have a 70/30% wining strategy, that involves riding a short term trend, than martingale can really help you out.

Also, depending on your account and emotional balance, set up a very short limit, like 2-3 loses, than start over. You really have to be comfortable loosing a certain amount if anyone wants to use this. 

I think Martingale is just at crappy end of a very bad PR battle set up by traders. It is an excellent money management tool for experienced traders. I know most people don't like it, but nevertheless, it seems those same people use it. 


  • blackfoil likes this

#15 krakkon

krakkon

    Member

  • Members
  • PipPip
  • 276 posts
  • LocationTorontarian, Ontario, Canada

Posted 23 January 2016 - 06:50 PM

I would say "No"  and "Yes"

 

most people here knows that I "Hate MG", even though I hate it, I have to admin I still use it in certain situations.

 

and I agree with black, in all of his points, because they make sense period. and I do follow these points when I use MG.

 

now, most of you knows that I use Extreme Nemesis on my trades, every time I start a trade or a signal shows up I only spend a set amount of cash, depending on my balance.

 

if I have $20, I will spend about $1 per trade. in this situations I never MG.

 

but, there are few situations where a particular "pattern" show up that involves 5 candles - they rarely show up - this pattern shows up after I lose on my regular trade, if the that pattern show up on then next few candle I will probably MG that pattern, because I know it will never passed the 2-steps if the candles still in the original Extreme Nemesis conditions.

 

in a way I do not trade using MG to recoup my loses, but rather to trade on a rare conditions.

 

and that's how I recommend people to use it.

 

please let me correct my self 4 bars pattern 


ADMIN REMOVED MY AFFILIATE LINK. <===== BAD ADMIN :P

My Strategy: 60s Binary Options Extreme Nemesis V3

 

Starting balance: $10

Goal: Increase the balance by 50% every week

 

1st goal    : $15 --------------- Achieved 

2nd goal   : $23 --------------- Achieved 

3rd goal    : $34 --------------- Achieved 

4th goal    : $51 --------------- Achieved 

5th goal    : $76 --------------- Achieved

6th goal    : $114 ------------- Achieved

7th goal    : $171 ------------- Work in Progress 

 

Follow me on my Journal: http://www.binaryopt...-krakkons-blog/

 

==============================================

Meet other traders, from Toronto, Ontario Canada, Follow the Topic:

 

Link: http://www.binaryoptionsedge.com/topic/2023-toronto-meeting-suggestion/#entry56283

Meetup Group: http://www.meetup.com/http-www-binaryoptionsedge-com/

 

 


#16 BinaryOptionsTutordotcom

BinaryOptionsTutordotcom

    Member

  • Members
  • PipPip
  • 233 posts

Posted 23 January 2016 - 08:01 PM

OK first to be fair I have done martingales and early on like a LOOOOOONG time ago made some nice money that way. However it was stressful and my equity bounced up and down during the week like a it was on a pogo stick. I now only focus on a compounding strategy essentially what Tripack shared. This is a link to where I talk about it on this board.

 

http://www.binaryopt...-no/#entry56035

 

     Take the counter party's money and use it against them and you are compounding their losses and this is a lot better IMO than than letting them compound your losses.

 

     Food for thought if you were the broker and just made $50 off a client who now wants to trade $100 doesn't that mean if they can knock you out one more time they TRIPPLE their winnings? Take the strategy and the patterns and all else out and ask yourself who is the predator and who is the prey there. All trading is really a zero sum game so I would rather compound winnings than my losses.


  • Tripack, happyjas and blackfoil like this

#17 BinaryOptionsTutordotcom

BinaryOptionsTutordotcom

    Member

  • Members
  • PipPip
  • 233 posts

Posted 24 January 2016 - 05:26 AM

This is a link to where I talk about it on this board.

 

http://www.binaryopt...-no/#entry56035

 

 

 

 Wrong link and I am not able to edit the OP. This is the thread I was talking about.

This is a link to where I talk about it on this board.

 

http://www.binaryopt...ney-management/







Also tagged with one or more of these keywords: binary options, martingale, money management, martingale strategy

0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users


USA REGULATION NOTICE: There are many binary options companies which are not regulated within the United States. Most of these offshore companies are not supervised, connected or affiliated with any of the regulatory agencies such as the Commodity Futures Trading Commission (CFTC), National Futures Association (NFA), Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA).

It is our STRONG opinion that you do not operate with any unregulated brokerage firm as they may steal or try to scam you out of every dime you have. Please take notice that any unregulated trading activity by U.S. Citizens should be considered unlawful.

Risk Disclosure: Binary Options Edge does not accept any liability for loss or damage as a result of reliance on the information contained within this website; this includes education material, price quotes and charts, and analysis. Please be aware of the risks associated with trading the financial markets; never invest more money than you can risk losing. The risks involved in trading binary options are high and may not be suitable for all investors. Binary Options Edge doesn't retain responsibility for any trading losses you might face as a result of using the data hosted on this site. The data and quotes contained in this website are not provided by exchanges but rather by market makers. So prices may be different from exchange prices and may not be accurate to real time trading prices. They are supplied as a guide to trading rather than for trading purposes.