What do you think of this Risk management system

Well, this is a risk management system that i learnt about just yesterday, it says that, if you are skilled enough to get 50% winning ratio with R/R=1, you can use this way. you keep trading with a small portion of your money, imagine 3%, and this goes like this, if you win one position, you simply jump to the next one with the same R/R and volume, but if you lose it, you double the volume for the next one. If you start with 3% of your equity, and lets say, you eighter double it, or lose it each time (of course this is stupid to trade this way, im assuming this for easier calculation) this would be the case: first stage 3%(lose), second stage 6% (lose), third 12% (lose), fourth 24%(lose), fifth 48% (lose). if you lose 5 positions straight up, it would be 93% of your equity lost after 5 trades, but if you win at any of the stages, even in the 5th one, it will compensate for all your lost trades.
My opinion is that, it is very risky, but with string control over emotion and with a very small portion of your money as SL, it can be profitable.
What do ypou think about this system? do you thingk that would work?

This is a classic Martingale approach. Its something which gamblers at casinos and horse racing tracks have tried in the past, but most of them have gone broke with it. Don’t ever do this.


You should better try it out.its a good strategy for a big heart

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Sounds like a great way to blow your account.

I think learning to trade and creating a stratagy that works would probaly be a better idea.

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Had a taste of it myself years ago on the horses. Thankfully I learned fast or was it my pockets taught me…

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hello my friend
it was 2020 that i heard about this system in roulette game
you havve 1024 lev and go with for example red
1 lev 2 lev 4 lev 8 lev 16 lev 32 lev 64 lev 128 lev 256 lev 512 lev and you have to win one of them ( 1 of 10)
and i thought i will change the world with this system but i lost 1024 in third night
that is gambling which is lucky here in forex of course you will lose all your money
hope it helps you

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I would suggest this is not a risk management system, as there is no risk management…


Your system sounds like mine a few years ago… “fast woman and slow horses”

Good old Martingale, the casinos cover this by putting betting limits in. You will notice Binary Options brokers have betting limits to stop Martingale also.

You are just going to have to put in the hard yards and develop a winning FX strategy, free of tricks.

Is it still gambling if you are analyzing a chart?!

I have seen brokers who does not put limitations on that, and I never do binary, only day trading.

What you are talking about is a total relay on chance, not on your analyzing skill, of course when it comes to luck, some one can be as bad as loosing 1000 times of losing. but i believe after spending time learning chart analysis, you cany loos 10 times without winning anything.

I am doing that in a demo account, satisfying so far!

Yes. it is the increased stakes which make it a gambling game. But if you’re able to analyse charts, there are better ways to manage risk, the true Martingale strategy only makes sense if the outcome of the event is completely unpredictable, such as the spin of a roulette wheel.

Read about Martingale, your approach is similar to it. The point is that this system works only if you have unlimited capital and have no constraints on betting amounts. In other words you need to have infinite ability to double bet amount as sooner or later you may encounter a losing streak that will exceed the number of times you can double your bet.

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