Each trader wants to make accurate transactions bringing him profit. Unfortunately, it is not possible to correctly determine the direction of the development of the price all the time. Profitable positions alternate with unprofitable transactions, creating a lot of motley results. Such trade continued until the Forex has a deposit strategy that came along with the strategy of Martingale from the game to roulette. The combination of two trading methods allowed us to say a system of work in the foreign exchange market, which does not cover unprofitable positions. The principle of operation turned out to be very simple that novice speculators immediately appreciated. The strategy was built on the averaging of the unprofitable transaction, while each new position opened in the market has a large lot than the previous.
Suppose that the first position was opened by a trader with a lot of 0.1 lots. If the market price began to move in a positive direction, then the transaction will close with profit. If the position is gaining losses, then a new transaction of the same direction is opened as the first, but, for example, with a lot of 0.2 lots. In this case, the Take Profit of both positions is put on the same price between the transactions. When closing the positions on Take Profit, the first deal will close with a loss, and the second with profit. As a result of such trade, the profit is obtained on the account by blocking the loss of a dual volume of the second transaction in the account.
The Martingale system is responsible for increasing the volume of each new transaction relative to the previous position. In the work, various coefficients of increasing the volume of positions can be used. A classic model is considered to be a growth of fragility by twice with each new market deal. In this case, the volume of positions will be as follows: 0.1; 0.2; 0.4; 0.8 and so on. Thus, the overall level of Take Profit will follow the price. It will be enough for the market price to adjust in the opposite direction, as all transactions will close.
Such work in the market without loss will be temporary. For the lack of single losses, you have to pay off the unprofitable series of transactions that may be fatal for trading account. Avoiding and Martingale allow for a while to forget about the losses, but in replacement they can take the entire deposit of a person. This methodology of trading is extremely risky, despite her seemingly breakdown. It does not happen on Forex trade completely without loss, because each transaction is the result of a market analysis that cannot be predicted with a 100% probability.