Martingale strategy With Stop Loss

[Peanutswar]

Seems not good enough to me to use the martingale, it's just like you are doing a not realistic trading, you make a position and then if you lose make another position to get back your losses, this kind of strategy doesn't require any kind of analytics or knowledge to think about of the next move of the market like in the gambling activity, scalpers still make an analysis with the help of their price action and technical indciators, you can easily manage to back those losses even though its not a revenge trade.

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[Mpamaegbu]

First Trade - If it hits your SL you lose $1
...

And so on until you get a trade right with at least 2/1 Risk Reward Ratio

Truth be told, Martingale strategy will end up losing you more money than you bargained for. It's a strategy every noob trader should avoid. Why not just take a maximum of two trades at the same time, depending on one's capital and the lotsize/leverage used. I think one ought to wait till the first trades are in profit before entering more. There's no point chasing the market and trying to force it to obey. The market is king and we should know that losing trades have a way of affecting traders' psychology.

Another trading strategy no newbie should touch is Hedging. You get to find that in FX trading/Binary and now in Futures. It's when a trader is scared on placing a SL and instead opens trade(s) in the opposite direction as to balance their losses. The problem then becomes at what point to exit the winning trade(s) that the losing one won't hit more losses.

On the Risk/Reward thing, I won't take a trade if it's a 1:2. Nah! That's not a good ratio for me. I aim at 1:4 at the minimum.

[Ahli38]

Even though I am a day trader and I often scalp, I don't like this method and I avoid it. Because actually this can also increase greater risks. And a bit contrary to good risk management in my assumptions. Looks like it could work well. but when the market continues to show no reversal. then tragedy will begin and I'm sure someone's psychology will start to be disturbed or their emotional management will start to falter. Unless it is done for long-term trading. And carried out on trading pairs that fundamentally have good potential. For example, bitcoin and ETH. Apart from that I don't think it's advisable to wear it. Unless we are ready to take the risk. On the one hand, this method also has a good impact, but only for investing in coins that have strong fundamentals. Because this is a bit similar to Average down. It's just that the amount of allocation we enter is enlarged at each lower position. But for scalping I hope you are careful. Because I also don't use it in scalping. but I sometimes use it in long term trading.

[justdimin]

When using a Martingale strategy most people dont use SL

Here is a Martingale strategy using SL when scalping

Let me know what you think about the idea

Martingale doesn't even work with gambling, why would you assume that it could ever work with anything else? I am not saying that this is a stupid idea or anything, you can go ahead and try whatever you want, I am sure you will do fine if you know what you are doing but I personally wouldn't trade like this at all. I believe that we are going to just use the normal strategies and shouldn't really worry about these new stuff.

There is a reason why there is a TA and FA system in place, most people use those and they make money based on that. If you want to give it a try and find something new, the best I can do would be follow the topic and support you along your journey and see if you are doing good or not, and cheer you when you make some money with it.

[wxa7115]

From a mathematical standpoint the problem with Martingale Strategy is that eventually you will reach a losing streak long enough to wipe out all your funds. And it is not a question of IF but rather WHEN.

So the strategy does not work (unless you have infinite funding). I don't know why people think they can outsmart mathematics.

Most people do not understand math, while they also have a narcissistic view about the world, in which if they need something then everyone and everything should be changed so they can get their way.

So if they need martingale to work, then in their minds it should, even if the math says otherwise, but as we know no one can really do this, and instead of adjusting their views and realize their mistake, they push even harder to get their desired result, which leads them to a scenario in which even if they were to eventually realize the truth, the only way for them to recover their money is to keep taking absurd risks and hope for the best.