Do you agree?
PS: Assumption is that the necessary analysis is done and the direction bias is still the same.
Hi, sorry I don’t understand what your title statement means. One thing that I can say is that I consider martingale to be a 100% loser over time. You will only find out when the next bet size is so large it exceeds your capital capacity.
I’m an averaging kind of guy. Managing trades is a skill that takes one’s trading to the next level.
I can agree with this statement.
Martingale is doubling down in the opposite direction of your original trade. Averaging is adding to a position going in the same direction (or adding to a losing position, as some would put it).
But, if you understand the risks involved and are willing to take a double hit if you’re wrong the second time, then averaging can be rewarding. I personally do this more with stocks (longer-term trades) than with Forex.
Many will disagree and say:
A Martingale strategy will work eventually. But there is never a situation in which Martingale is the best strategy to choose.