Article by Johnny Smiths

One of the best betting strategies is known as the Martingale concept, and has been around since18th century France. The theory behind the strategy is simple. If you were betting on heads or tails, you would have a 50% change of loosing. If you win, then it’s all good news. However, should you lose, then your stake for the next flip is doubled.

Doubling your bet will ensure that your initial loss is recouped, along with the original bet. So you continue to double up on each loss until eventually you win. You will only win on one bet, but should have infinite financial resources you would never loose.

In the real world, most of us don’t have a bottomless pot of money. For that reason, the Martingale system ahs been developed to work on forex trading with the Meta Trader 4 platform. This development works in a similar way to a hedging strategy, but it doesn’t just limit the losses, but increases profits from trend reversals.

Experience tells us, that markets will move in waves within a trend. Quite often a trend will reverse before moving back in its original direction. In some cases, the reversals can be large, as extreme as hundreds of pips, which could go beyond your previously agreed stop loss.

The Martingale EA has many advantages, one of which is the ability to adjust the setting on your trading platform to open a hedging bet against those unwanted reversals. Using the lot multiplier enables you to recover your losses from the original trade and turn the reversal into profit. You can set the amount by which you wish your lot size to increase and also set the opening and closing levels of the hedging trade.

By using this system, a trade will only open once the stop loss from the original trade has been activated. That is one of the key differences of this system from a normal hedging program. For people used to using the Martingale strategy, then the Martingale Expert Advisor is the perfect way to automate the process.

Because the forex trading market is very volatile, Meta Trader 4 programming has ended up becoming quite extensive, and the Martingale manager follows in this vein. This has allowed the developers to create a break even strategy, which can be implemented after a certain number of pre-determined trading losses. This feature will give you a real bonus, particularly if you have left the trading on auto pilot and suffered some losses during the day. You will be pleasantly surprised to find you account intake thanks to the Martingale Manager.

Everyone will suffer losses, including the best forex traders in the world. Where they differ from the rest, is their ability to use the volatile market to the long term advantage. They won’t break even after loss, but make a profit from a poor trade direction.