Martingale strategy of never going out of position!
Traders with a little bit of experience know that Martin (most of the time refers to the loss-making increase) strategy is to cover your liquidation! It was even dismissed as a garbage strategy by some people.
What’s even more exaggerated is that some foreign trading teams spent tens of months and invested millions of funds to develop a quantitative trading system, and finally developed a product that would cover your liquidation. In fact, the essence is still not out of Martin’s thinking strategy.
It can be circulated in the market for more than a hundred years (invented by the Frenchman Martingale in the 18th century), there is only one reason, in theory this strategy will never lose money!
This may be a joke made by God with human beings, because the theory is indeed that there will never be a loss, but in fact, no one can escape the ending of a liquidation!
Because people who use this strategy overestimate the scale of their funds, the premise of never losing money is that you have unlimited funds and you can continue to increase your position as much as you lose, but in fact, if you really have unlimited funds , Will you still make a deal?
Obviously, no one has the conditions for unlimited funds.
Today there are still a large number of investors using the Martingale strategy. Why?
Answer: Humanity! In theory, never lose money, which perfectly conforms to the human thinking of not accepting loss. Losing money is called cutting meat, and no one wants to cut his own meat.
Is there any way to keep Martin's strategy from liquidating?
Answer: Yes! Today I will share with you how the Martin strategy achieves sustained profitability under the premise of ultra-low risk.
A good strategy must have predictable risks, that is, we don't know how much money we make, but we must know how much money I will lose at most. In this way, it is easy to set other parameters.
How do I know how much I lost?
Answer: Measure and calculate by parameters such as order quantity, increase ratio, increase times, stop loss points per order, etc. Low risk is easy to achieve. For example, the first order is 10USDT, the increase ratio is 2, the maximum number of orders is 7, and the stop loss point of each order is as close as possible to the increase interval, and the trailing stop loss must be opened.
If you follow the above thinking to do risk control, you can at least do it, with very little loss. After determining the ultra-low risk, all you have to do is: how to improve the success rate of placing orders.
How to improve the success rate of placing orders?
Answer: Raise the barriers to entry, such as using classic statistical principles to monitor price changes, including the degree of divergence, dispersion indicators, etc. to filter.....
And if you want to seize more opportunities, you only need to shorten the trading cycle, such as a 5-minute chart, and you want more opportunities, as long as multiple currencies are running at the same time.
The winning rate increases, and you can naturally trade calmly. Following this line of thinking, we developed a quantitative Martin product: Royal Q. This product can guarantee that in any transaction situation, it can be done: never liquidation!
[Royal Q] is an adaptation of the Royal Quantify System team based on Martin, a century-old classic European speculative tactic, and completely solves the problem of Martingale's shortcomings (small gains and big losses). In order to achieve long-term stable transactions.
Royal Q's parameters have been fully opened to users, and everyone can customize transactions according to their own ideas.