Best Automated Forex Signals and Trading System for Martingale Traders – Martingale trading strategy is based on probability theory, and if your pockets are deep enough, it has a near-100% success rate.
The martingale was originally a type of betting style based on the premise of “doubling down.” A lot of the work done on the martingale was done by an American mathematician named Joseph Leo Doob, who sought to disprove the possibility of a 100% profitable betting strategy.
Why Martingale Works Better with FX
One of the reasons the martingale strategy is so popular in the currency market is because, unlike stocks, currencies rarely drop to zero.
Although companies easily can go bankrupt, countries cannot. There will be times when a currency is devalued, but even in cases of a sharp slide, the currency’s value never reaches zero. It’s not impossible, but what it would take for this to happen is too scary to even consider.
The FX market also offers one unique advantage that makes it more attractive for traders who have the capital to follow the martingale strategy:
The ability to earn interest allows traders to offset a portion of their losses with interest income. This means that an astute martingale trader may want to only trade the strategy on currency pairs in the direction of positive carry.
In other words, he or she would buy a currency with a high interest rate and earn that interest while, at the same time, selling a currency with a low interest rate. With a large number of lots, interest income can be very substantial and could work to reduce your average entry price.
Martingale Trading System and Signals (Trading Rules)
This Martingale Trading System and Signals find the direction of the market with trend indicator (WATR ) and price action indicator ( arZZ) filtered with TMA Bands and Accelerated Awesome.
BUY Only Martingale Rules
- Price Above upward EMA 100 line;
- TMA true slope green bars;
- Green Up Matingale OP Arrow;
- Momentum line above 100 level.
- These are BUY Only Conditions.
SELL Only Martingale Rules
- Price below downward EMA 100 line;
- TMA true slopered bars;
- Red Down Matingale OP Arrow;
- Momentum line below 100 level.
Martingale Trading Notes:
As attractive as the martingale strategy may sound to some traders, we emphasize that grave caution is needed for those who attempt to practice this trading style.
The main problem with this strategy is that often, seemingly sure-fire trades may blow up your account before you can turn a profit or even recoup your losses.
In the end, traders must question whether they are willing to lose most of their account equity on a single trade.
Given that they must do this to average much smaller profits, many feel that the martingale trading strategy is entirely too risky for their tastes.