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Binary options winning anti-martingale money management – Compounding magic


anti-martingale money management

Money management is something you need to be familiar with in order to become a successful trader. You will find many different strategies to choose from. It is a good idea to get the knowledge and then decide what suits best your needs and possibilities.

Today, I wish to present the anti-martingale system, which, as the name indicates, is somewhat opposite to the Martingale money management. You might have heard about the latter. If not, check the article about money management strategies.

The basics of the anti-martingale system

Let's first remind you what the Martingale money management is about. Basically, it says that you ought to invest more money after you lost a trade. Also, you should decrease the invested amount in case your transaction was successful.

The anti-martingale strategy rules are the opposite. In the case of a lost transaction, you go to the beginning and start again from the amount you have started with. But then, you double the invested amount after the winning transaction.

In general, the anti-martingale money management will presumably earn a bit smaller profit than the Martingale. On the other hand, it is also less risky when compared to the Martingale. Your initial amount is at risk in a trade sequence and you simply use earned money to increase position size.

Trading with the anti-martingale system on the IQ Option platform

Apply the anti-martingale money management when you trade binary options on IQ Option. Remember, however, to follow a few simple rules.

RULES:
  • Track your win Rate with Trade-logger
  • The asset is minimum an 80% Payout
  • Set your Maximum loses in 1 day
  • Max 5% of account Balance
So how does it work with binary options? Well, first you have to decide how big will be your investment. Let's take $10 at the beginning. Then, with a proper analysis of the market, you enter a long or short trade.
If you lose, you enter the next time with the amount of $10.
If you, however, win, you will add the profit to the invested amount and put an almost double amount of money in the next move.
Let's see how it looks on the exemplary table.

Example of a 200 USD account.
Based on 80% Return.
Trade Number:
Amount:
Difficulty
Average win rate
1
10
easy
2
18
easy
3
‭32.4‬
Mid
70%
4
58.32
Mid
75%
5
104.97
Hard
80%
6
188.95
Hard
85%
7
340.12
Crazy
90%
8
612.22
Crazy
95%

Your capital is $200. You make your assumptions about the direction of the price based on the market analysis and put $10 on a trade. The payout is 80% so, in case of a winning transaction, you add the profit to the previous amount and you invest $18. You won again, so again, you add the profit and you put $32.4 in the next trade.

The idea is to use earned money in a cycle of trades
The idea is to use earned money in a cycle of trades

Before you start trading using this method, you have to decide how many transactions you will conduct. You can choose to stop after 5 consecutive trades but it can be 3, 4, 6. It depends on the win rate of your past trades.

This compounding strategy can bring you a quite good profit. The longer the win streak, the higher earnings. I recommend beginning with 2 or 3 trades in sequence. This way you will still profit from compounding but it will be easier to manage your emotions at first.

You need to decide when your compounding sequence will stop
You need to decide when your compounding sequence will stop

Final words

You can count on relatively high earnings in case most of your transactions end up profitable. Of course, there is never a guarantee of what will happen in the market and whether your predictions were right or wrong. Nevertheless, it is very important that you are able to keep the money in your account. And it is just easier with the anti-martingale strategy.

Choose the assets that have at least 80% return.

Set a maximum amount you can lose in a day. It may be 1 to 3 times per day.

Do not invest more than 5% of your account balance so you will not wipe out the account completely. For example, if you have $200, your initial trade size should be a maximum of $10.

Use a tool that is called Trade-logger to track your win rate. If it drops below 70%, you should work harder to increase your win rate.

Always consider what is best for you. Get to know the strategy well by practising on a demo account. It is free of charge on IQ Option and you can use it as long as you wish. Once you feel confident with a method, move to the live account.

Share your views on the anti-martingale money strategy with us. Down below the site, you will find the comments section.

Best of luck!

 

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Bart Bregman

Fulltime Day trading, and help Iq option wiki in my spare time to build an awesome platform to help beginners out there. #digital nomad, traveling all over the world.

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