Martingale Trading System- is based on the popular gaming system eighteenth century France. The central principle of this system is to double the bet every time you lose as if you win (considering 100% win / loss bet every time) you will recover all your losses and win the amount of the initial bet. If there were an infinite amount of money, this strategy would sure thing because with the infinite amount of bets, the necessary result finally come. The problem is that no traders with infinite wealth and thus the use of this strategy ultimately leads to an empty account. Although it is a very popular Forex system and martingale trading system is used in many expert advisers Forex, I do not recommend trading with him.

## Characteristics of this Trading System

1. good system in theory.
2. It is not good practice.
3. Ratio of reward / risk can reach very low values.

1. All currency pairs and time frame should work.
2. Determine your basic position size.
3. Put the position in random direction (buy or sell) with some fixed stop-loss and take-profit some fixed.
4. After the SL or TP are fired you win or lose.
5. If you win, put the size of the initial position and go to step 3.
6. If you lose, double the size of the position and go to step 3.
7. If you have the infinite balance in the trading account, you finally win a lot. If your balance is limited, you will lose everything finally.

## Example

The sample chart is not presented for this system of trading because there is nothing important to show in the graph. Let’s look at the following examples.

1# You start with \$ 10,000 account and can operate with Forex mini-lots (0.1 standard lot); decide to trade in EUR / USD.

2# You define your basic position size as 0.1 lots.
3# Decide buy with the stop-loss of 40 pips (or 4 USD). Take-profit is set to the same value.
4# Loses the position. Now your account is \$ 9,996.
5# Double your next position 0.2 lots, so that with the same stop-loss and take-profit you risk 8 USD and also have the chance to win 8 USD. Decides to change the direction of the position for sale.
6# Win and now you have recovered your 4 USD and has also won 4 USD. Your account balance is \$ 10,004.
7# You returns its position 0.1 lots to start and start again.
8# With the balance of your account at \$ 10,000 and the basic risk of 4 USD you would have to lose 11 positions once in a row to delete your account. You have to earn 250 positions to double your balance.