Binary Options Martingale and Anti-martingale Strategy

Binary Options Martingale and Anti-martingale Strategy

Submitted by adil on Wed, 09/10/2014 - 20:20

It's a Bird, It's a Plane, It's the Martingale Strategy

Being a binary options trader, your primary goal is to always place successful trades in order to earn higher profits. This can only be done if you devise the right strategy by keeping in mind the current trends and formation of patterns in the binary options market, as it enables you manage your investments and place your trades wisely.

Among many other binary options strategies, traders also use two strategies called a Martingale strategy and the Anti-martingale strategy.

Martingale Strategy

Martingale strategy is used if a trader raises the bet two times the normal bet after the previous bet fails. As a result, a trader is able to get a winning trade. This strategy is based on the expectation that by doubling the bet, previous losses will be compensated and a trader will receive his allowed profit. However, being a binary options trader, when you use this strategy, make sure that not only you double all the previous bets, but also the aggregate of every bet that was lost. It can also be understood with the help of a following example:

Suppose, you purchase a binary option for an amount of $25, but you wrongly anticipate it. So, you purchase another option for an amount of $50, and the over-estimation is again wrong. You buy an option with of $150 for the third time and if it doesn’t generate gain, you are required to make an investment of $450 in the binary options. So, when you use this strategy, be sure that you have sufficient investment and the stress to resist or keep on going until the trade is successful.

It is very normal to suffer back to back losses for a very long period when you trade currencies. But, do not be disappointed by it or consider it a bad luck, because when you are using a martingale strategy, it decreases the entry price by the process of doubling down. Therefore, the more bets you place, lower will be the entry price.

The benefit of using this strategy is that the value of currency, hardly decrease to zero. There is a possibility for a company to become insolvent due to bankruptcy, but it cannot happen to a country. Moreover, the forex market enables the traders to earn interest and decrease the overall losses. Despite all this, a trader should be careful when he chooses to use this strategy, because it can result in zero bank account balance if it is not used wisely.

Anti-martingale Strategy

In an anti-martingale strategy, the investment is only increased if the binary option generates profit. And if that investment in the binary options does not generate money, the support is decreased. However, you are required to raise your investment to 35 percent if you have back to back unsuccessful trades and your account balance reduces by 25 percent. This strategy can be successful in an upward trending market as it enables the traders to concentrate on winning trades, which can increase the profits if they keep on going up.

Whatever strategy you use, always remember that you can end up in profits only if you have a plan and a reasonable approach to win a trade.