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Anti-Martingale Strategy


Anti-Martingale – the capital management system, based on the increase in the volume of the position in the case of the profit and reducing the volume of the position in the case of loss. The strategy is based on the Martingale system, but with the opposite conditions (as the name implies), since the Martingale strategy is necessary to increase the amount in case of loss. In accordance with Anti-Martingale standard form, the volume increase occurs in two times, but the number of steps can vary. This money management system (abbr. MM) has established itself in the Forex market, and it is used by novice traders and experienced as well.

Description of Anti-Martingale system

The principle of operation of MM is that the correct determination of the entry point while the closing of profitable positions, the trader increases the volume opening up new positions in the same direction (image 1). The level of closing the position each trader sets independently. According to the strategy, the first increase of volume should not do after the first profitable position, but after the second. As a rule, it is doubled. Thus, the increase in positions in a series of profitable trades gives a good chance to increase the deposit. It is important to consider the size of the deposit and the step size. Simply put, you need to calculate how many positions you can open at the same time to have enough funds. It is recommended not to open more than three transactions at the same time and to calculate initial volume before entering the market.


Image 1. Anti-Martingale System, the volume capacity

In the case of loss, the trader reduces the volume to the original. If the trader incorrectly identified the direction of the market, the amount of reduction does not allow losing money quickly.

It is also important to note that the amount of capacity should not be unlimited. Typically, merchants increase the amount twice or three times, and then returned to the original level. This helps to protect themselves, because the trend cannot last forever, and this tactic will help to minimize losses in the event of a reversal trend.

Advantages and disadvantages of the system

The most important advantage of Anti-Martingale system is a sufficiently simple terms which allow you to increase the deposit very fast. This money management system is the basis of many trading strategies, such as trade in fixed-rate, fixed-position, etc. The trader is exposed to minimal risk, because he/she does not increase the volume of products under unfavorable conditions. However, a series of profitable positions increase the profit.

Anti-Martingale has also disadvantage. For example, while the flat (sideways) MM system will not allow you to make money. Since the profitable and unprofitable transactions will alternate. Therefore, you must correctly calculate the moment of entry into the market and do not let for losses to cut off the profits.