In order to make money on the Internet on a special Martingale trading strategy, you do not need any special knowledge or professional skills inherent in a certain category of people. In fact, everything is extremely simple and accessible even for those who do not have experience with this particular approach.
In this article we will tell you what the Martingale strategy is, where it came from in the field of binary options, as well as what risks await a person who is going to make money on it.
Origin and core scope
So, perhaps we should start with the fact that this technique came to us from the field of gambling and casinos (both those that operate in real life and online establishments). Its essence was to be able to cover your losses in such unpredictable games as roulette, due to the constant growth of rates.
Perhaps being less common at the time of its inception, the Martingale strategyallowed to really earn good money on a simple mathematically sound set of actions that led to the final increase in the player's capital. It is possible that someone really could become rich using this technique.
But today, when this strategy has become quite popular, and when every person who has access to the Internet sees a lot of advertisements about the action and the incredible effectiveness of this method, he also starts to try something.
As a result, the Martingale strategy becomes widely known, including by the casinos themselves, thanks to which the latter have their own set of tools that allow them to track down such “wise men” and quickly disappoint them. At least, online casinos invented algorithms to protect their interests many years ago.
What is meant, you will understand immediately after you read the information directly about the principles of the strategy. Without Martingale, you have traded options before, but we doubt whether you will apply the technique after getting acquainted with it.
The meaning of the Martingale strategy
The basis of the strategy, as already mentioned above, is a mathematical, rational method of gradually increasing your bank. It is based on the calculation of the percentage of the probability of the occurrence of an event. In this case, the Martingale strategy determines how soon the winning combination will fall out (regardless of whether it is about roulette or binaryoptions).
Let's imagine that you are a bettor. Let's say you bet $10 on roulette on red. The drum spins, the ball stops in front of the number of red or black (or green, but more on that later) color. As a result, you win or lose.
If we expect a win - you can change the color on which the bet was made and deposit 10 dollars (without further "growth"). Otherwise, if the bet is a loser, we must double our deposit to $20 by betting on the same color that was unsuccessful for us. The chances that the ball will re-land on the opposite value are reduced; increasing the likelihood of our victory.
If we don't win this time, double our bet to 40 and choose the same color. Such growth should go on until a winning combination falls out and we break a solid bank that covers all our expenses. At least that's what the martingale betting theory suggests. Is it really so?
Risks in roulette: “zero”
If we proceed from the chances that this or that number will fall out, and consider the probability of this or that combination, one question immediately arises: what about the “zero”? After all, as far as we know (even without real experience of playing in a casino), on the field where the player makes his choice, there are not two, but three colors: red, black and green. The latter determines the “zero” position, which, of course, can also fall to us in the course of our “calculated” game. Howresult, it changes the balance of probabilities and reduces our chances of success.
Due to the fact that the authors of the methodology (or those who actively advertise it now) do not take into account the very “zero”, this allows them to assert how profitable the Martingale strategy is.
Roulette in their understanding can be a great way to earn money for anyone who is at least minimally familiar with the computer. The main thing is to start doing it and make your first deposit to your casino account. Of course, from these funds, businessmen receive their percentage, which stimulates them to do this. And the gullible "scammer" with a roulette eventually realizes that he was deceived.
Risks in roulette: algorithms and protection
The second important point that should not be missed when talking about how the Martingale strategy works, reviews of people who are knowledgeable in this topic call the protection that operates in the casinos themselves. It's no secret that these establishments are concerned about their own economic security, putting in place various verification mechanisms to prevent players from cheating and increasing their chances of winning.
Of course, Martingale is another trick that will allow you to win more. And in order to prevent this, casinos introduce their own restrictions. For example, in many gambling halls you cannot make a deposit in excess of a certain amount. If you grow on your rates, there is a high probability that you will soon reach the very bar, because of which you will simply lose your investment.
The second important point is the twisting of the mechanisms of the casino itself. We would be naive if we would argue that everything in an online casino is fair and transparent. Of course, the system can determine whether a player uses Martingale or not.
If that's the case, it's quite possible that the same color (the opposite of the one you chose) will appear a dozen times. I don't think it's worth pointing out that in the process of such a game for an increase, you will lose a substantial amount.
Binary options
Why did we talk about online casinos, if our today's topic is the Martingale strategy in binary options? But the fact is that many of the limitations and obstacles described above, unfortunately, are waiting for us in this area as well.
And, to be honest, the difficulties that such a technique entails do not disappear in any way if we are talking about options. See for yourself if you don't believe me! To begin with, we will present a model of how the approach we are describing in the field of options will work.
How to play?
So, we understand that binary options are not “Forex”. This is a much more simplified model of interaction with financial markets, thanks to which such earnings are now available to everyone. However, given the binary nature of the result of trading (increase or decrease in quotes), theoretically, our strategy can be applied to such a model. It turns out that you must (as described in the roulette situation) bet on one option (for example, down), wait until it is realized, afterwhy double the bet in case of loss… But there is one caveat.
Unlike roulette, where we have a 50/50 chance of winning or losing (if you don't take into account zero), the situation with options is somewhat different. Here we are given not all 100%, but only 70-80% of the profit, which is why the rate needs to be increased not by 2, but by 2.2-2.3 times. As a result, we have a faster increase in contributions, while the total number of steps remains unchanged.
Restriction
Also, the argument against using the Martingale strategy in binary options is the limitation of the bet cap. This is done just in order to somehow predict how much the maximum user can get, and calculate whether he will be able to use the technique or not.
The risks that operate in the field of binary options can also be excessively high. After all, if we take into account that in the casino we have only 3 final outcomes, then in the case of options, everything is completely different.
On the market, in addition to "falling" and "rise", there may also be a "movement to the side", which determines the absence of any special changes in the price of quotations. In this case, our Martingale can also show negative results, which will only ruin the player.
Reviews
In fact, there are some resources on the Internet where everyone leaves comments about such strategies and tactics. There is information about the Martingale. We found that several users actually tried the approach mentioned, butthey didn't properly succeed here. This is too fickle, and maybe even a risky venture.
And there are some reasons for this, the main of which is the lack of appropriate capital. Even if there are no limits on rates on the platform, any ordinary person cannot afford to grow his capital so intensively. To do this, you need to start trading with at least 5-10 thousand dollars. Naturally, no one will pay this money to trade for several dollars with a further increase.
The second point is the absence of a fixed procedure. Let's put it this way: yes, you can really earn a certain amount by using some Martingale strategy advisor if you complete the necessary operation in a minimum amount of time. However, this may not happen (there are no guarantees). You can continue to raise the rate, and there will be no changes in quotes in a positive or negative direction for you.
Multiplatform
Martingale strategy is suitable for IQ option, 24option, Alpari and almost all other options trading platforms. So if you have enough resources and desire to give it a try, you can do so and share your story somewhere online. Others will benefit from knowing how this kind of experiment went.
