Anti-Martingale system: the main principle and features of use
Anti-Martingale is an asset management system based on the principle of increasing the volume of a position, if profit is expected, and decreasing it, in cases where the transaction is unprofitable. Martingale technique is used here, but under opposite conditions.
The Martingale strategy supposes that if the made rate turned out to be unprofitable, one should make another one, but double the lot size. Gradually increasing the rate, it is possible to cover the losses. However, in this case, you need to be patient and have a substantial sum.
When using the Anti-Martingale system for profitable positions, a trader needs to increase volumes by creating new positions in the same flow. However, the principle will work if the Forex entry point is correctly defined.
The condition of this system suggests that the first volume increase should be done not after the first position with profit, but after the second one. The increase is carried out in the double size. This is the main difference from Martingale, where unprofitable trades are multiplied rather than profitable ones, as in this system.
When increasing positions with profitable trades, there is a high chance to make more deposits, which will give a high income. A number of factors should be taken into account for the application of Anti-Martingale strategy in the Forex market:
- deposit itself;
- order opening step;
- trader experience and other features.
A trader needs a comprehensive analysis, he needs to be able to make calculations and understand how many positions he can open simultaneously without losing all his capital. Experienced players recommend to stop at three trades.
This system assumes the process of reducing positions, if losses have started. Then the trader will be able to stop the loss of funds and buy himself time to minimize the damage.
However, it should be understood that it is impossible to constantly increase the volumes. In most cases, using this strategy, a trader manages to increase volumes 2-4 times, and then the efficiency is reduced to the initial level. This approach gives an opportunity to save the deposit and protect yourself when the trend reverses.
Anti-Martingale is quite easy to use, does not require a huge number of conditions for the result. The system allows you to earn, with the right approach, the risk in this case is minimal. The last factor makes the strategy attractive for beginner traders. The approach is clear – reduce positions when profitability decreases.
However, it will not be reasonable to use Anti-Martingale in all situations. For Flat, such a system will not be suitable, it will not bring money, and in case of fluctuations in the value can lead to losses. In this case, unprofitable and profitable transactions replace each other, and it is difficult to predict what is happening at this moment.