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.

Key TakeawaysπŸ”‘

β†’Anti-martingale money management is less risky than the Martingale strategy.
β†’It involves doubling your investment after a winning trade, and returning to the initial amount after a losing trade.
β†’Consider factors such as asset payout, maximum daily loss, and account balance when using this strategy.

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.

Pros and Cons of Anti-Martingale Money Management πŸ’‘

Pros βœ…

  • β†’Lower risk compared to the Martingale strategy
  • β†’Potential for high profits during winning streaks
  • β†’More control over potential losses

Cons ❌

  • β†’Requires a high win rate to be effective
  • β†’May result in smaller profits during shorter winning streaks
  • β†’Emotion management can be challenging during winning and losing streaks


Anti-Martingale vs. Martingale Key Differences
Risk Management Anti-Martingale is less risky than Martingale, as it uses earned profits to increase position size rather than chasing losses.
Profit Potential Anti-Martingale may yield smaller profits but has higher potential during winning streaks, while Martingale can lead to large losses during losing streaks.
Emotion Management Anti-Martingale allows for easier emotion management, as it does not encourage chasing losses like Martingale does.

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!

Frequently Asked Questions πŸ™‹β€β™€οΈ

  • Q:Is the Anti-Martingale strategy suitable for beginners?
  • A:Yes, the Anti-Martingale strategy can be suitable for beginners, as it is less risky compared to the Martingale strategy. However, it is important for beginners to practice on a demo account first to become Yes, the Anti-Martingale strategy can be suitable for beginners, as it is less risky compared to the Martingale strategy. However, it is important for beginners to practice on a demo account first to become familiar with the method and develop their skills before trading with real money.
  • Q:How many trades should I conduct in a sequence using the Anti-Martingale system?
  • A:The number of trades you should conduct in a sequence depends on your win rate and personal preferences. Starting with 2 or 3 trades in a sequence is recommended for beginners to manage their emotions and minimize risks.
  • Q:What is the minimum asset payout required to apply the Anti-Martingale strategy?
  • A:It is recommended to choose assets that have at least an 80% return to ensure the strategy is more effective and profitable.
  • Q:How can I manage my emotions while using the Anti-Martingale strategy?
  • A:Emotion management can be improved by setting a maximum number of trades in a sequence, tracking your win rate using a Trade-logger, and setting a maximum daily loss limit to prevent chasing losses.

GENERAL RISK WARNING

The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.
Kindly note that this article does not provide any investment advice. The information presented regarding past events or potential future developments is solely an opinion and cannot be guaranteed as factual, including the provided examples. We caution readers accordingly.

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Bart Bregman

Author / IQ Option expert: "My name is Bart Bregman, I have 9 years of full-time professional trading experience. I've been trading with IQ Option for more than 7 years, mainly on the shorter time frames doing technical analyses, and have many experience with Binary Options, CFDs, Options, and Crypto trading. There is no such thing as a bad trade! As a digital nomad trader, I'm mostly traveling all over the world. Follow my journey on Instagram at https://www.instagram.com/bart_bregman/. "

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