Pyramiding anti-martingale or Forex is the acceleration of Deposit Forex at a strategy, causing great interest among the traders in the Forex market, especially beginners.
Pyramiding in Forex is the exact opposite, in the ideological sense, the martingale strategy, which include increasing bets after each losing trade, and more suitable for binary options trading (and even better for roulette). The level of risk in overclocking strategies was somewhat lower than in the martingale, but they also have a “roulette color”.
Strategy for overclocking of the Deposit for Antimartingale
How does the anti-martingale? Strategy, at first glance, very simple to implement and does not require detailed market analysis. Actually this explains its popularity among neophytes exchange trading. As the figure shows, the method consists in the successive opening of several unidirectional transactions (usually of the same size).
Each next transaction is opened under the condition that the previous withdrawn to breakeven.
Example: opens at the market price (zero) on sale. Stop loss is set at +50 from the entry point, take profit does not apply.
If the choice of direction was a mistake, the loss will be 50 pips. If the market moves in a certain direction, then next trade should be opened from the -100 level, Stop loss at -50 (to the same level reached, Stop-loss first transaction). If the market will turn, then the trader at breakeven. Every next open for such a scheme, the transaction will generate a profit.
The stop loss level every trader establishes himself in accordance with their financial capabilities and risk appetite. You should also consider characteristics of the chosen trading instrument (in particular, the tendency of the currency pair to wide price movements). But we should not forget that trading with a stop-loss less than 50 pips, the trader substantially reduces the likelihood of overall success strategy. One friend of the trader compared this strategy with the “hanging over the precipice on the nails.”
Under this strategy, the appropriate use trailling stops that must be synchronized with the start level stop loss each transaction.
Overclocking of the Deposit with Antimartingeyl lends itself well to algorithms. Many advisers Antimartingeyl are clear proof of that. The Advisor to disperse the Deposit is not among the most popular robots, but of each broker, any trading platform there is in the portfolio of instruments representative of the family trading. Most of them, in terms of functionality, are trending indicators, some are able to assess the potential of a trend and to inform about corrections and reversals.
Trusted Advisor to disperse a small Deposit – it’s a dream, generally unattainable, every beginner (and not only) of the trader.
Advantages and disadvantages of Pyramiding
Obviously, the anti-martingale on Forex effective when the long-term trend with high potential that occurs in real life is not often. This is not the only drawback of this method, but first it is worth noting his dignity.
The main advantage of this algorithm is the fact that it offers traders the opportunity to trade due to the fixed gains and does not require the diversion of additional funds. Pyramiding is a unique opportunity to overclock a small Deposit in a short time. In fairness it should be noted that this success will testify more about the luck of the trader, and not about his skill.
But this is all in theory. Practice, as always, is not so straightforward. Although, it should be recognized that strict compliance with the rules of the strategy in terms of risk management allows to get a stable, albeit low, profit.
The main drawback of this strategy is its uncertainty, which generates a high level of psychological stress. Someone said, “If you do not know where to go — never going to catch a fair wind”. Probably the author of these lines had to do with trading currency and this statement best characterizes the strategy of Pyramiding.