1. Martingale StrategyPart 1 By Fx-Megaforex www.fx-megaforex.com

2. www.fx-megaforex.comMartingale StrategyPart 1Developed in the 18th century,this approach is centered don theprobability theory and if you have sufficient funds, it has an almost100% success rate. 3. www.fx-megaforex.comMartingale StrategyPart 1 Known as the Martingale,this strategy was mainlyused in Las Vegas gambling halls. 4. www.fx-megaforex.comMartingale StrategyPart 1The problem with this tacticis that in order to attain100% effectiveness, you must have a lot of cash. 5. www.fx-megaforex.comMartingale StrategyPart 1As this principle is based on mean reversion, onewrong trade can bankrupt an account. 6. www.fx-megaforex.comMartingale StrategyPart 1 Also, the amount of money risked on the transaction ismuch greater then the likelygain. In spite of thesedrawbacks there are ways to 7. www.fx-megaforex.comMartingale StrategyPart 1Despite this, we are going tolook at how you can improveyour likelihood of making money using this very high risk & complicated strategy. 8. www.fx-megaforex.com Martingale Strategy Part 1But First, what is theMartingale Strategy? 9. www.fx-megaforex.com Martingale Strategy Part 1 The Martingale was initially atype of gaming trend that wasfounded on the premise of the doubling down. 10. www.fx-megaforex.com Martingale Strategy Part 1 The mechanism of the modelobviously entails a starting bet,however, every time the bet loses,the stake is doubled in a way that,given adequate time, one win will make up all of the previous 11. www.fx-megaforex.com Martingale Strategy Part 1Lets look at a basicexample to help grasp the Martingale Strategy. 12. www.fx-megaforex.comMartingale StrategyPart 1If we took $1 coin & played heads or tails there is a50:50 chance that the coin will fall on either heads ortails. 13. www.fx-megaforex.comMartingale StrategyPart 1As each individual toss isindependent, the preceding toss has no effect on the next one. 14. www.fx-megaforex.comMartingale StrategyPart 1So if you always bet onheads, you would, givenan unlimited sum of money, at some point 15. www.fx-megaforex.com Martingale Strategy Part 1The technique is based on the concepts that just the one successful transaction isneeded to turn your accountaround. 16. www.fx-megaforex.com Martingale Strategy Part 1As an example, you have $10 to gamble. You start of with your first gamble of $1. Youbet on heads, heads comes upand you win $1. You now have 17. www.fx-megaforex.com Martingale Strategy Part 1You would then carry onbetting $1 until you dont win. But if the following toss doesnt win, your accountmoves back to $10. 18. www.fx-megaforex.com Martingale Strategy Part 1So on the following bet, you stake $2 hoping the coin lands on head; if so, you would recover your earlierlosses. 19. www.fx-megaforex.com Martingale Strategy Part 1 But if it lands on tails, you loseanother $2, so you are now down from $10 to $8. According toMartingale strategy, on the next gamble you now double the previous bet to $4. 20. www.fx-megaforex.com Martingale Strategy Part 1 But if it you hit a winner, yougain $4, so you are now up to $12. Clearly, all you calledfor was a single success to recover all of your earlier 21. www.fx-megaforex.com Martingale Strategy Part 1Please see Martingale Part 2 Visit us at www.fx- megaforex.comThis strategy works also inBinary Options.