Chapter 3 What is Anti-Martingale Strategy?
Anti-Martingale strategy is a money management system based on increasing (or doubling up) the trading volume in case of profit and decreasing (or doubling down) the volume in case of loss. This strategy is the opposite of Martingale system, which implies increasing the trading volume if the position is losing. If a trader use a standard Anti-Martingale strategy, he or she should double the volume, but the number of steps varies.
The anti-Martingale system accepts greater risks during periods of expansive growth and is considered a better system for traders because it is less risky to increase trade size during a winning streak than during a losing streak. However, a doubling down on a given winning bet exposes him to a single large loss that may wipe out previous gains.
The Martingale system, on the other hand, is more of a "reversion to the mean" scheme that may be more suitable in directionless, meandering markets.
Martingale Vs. Anti-Martingale
How does the Anti-Martingale system work?
The anti-Martingale system implies that if you determines the entrance point correctly, you should increase the volume by opening new positions in the same direction
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