What is the martingale system?

The Martingale System (also known as the Martingale Strategy) is a risk-seeking method of investing. The main idea behind the Martingale System is that statistically, you cannot lose all of the time, and thus you should increase the amount allocated in investments—even if they are declining in value—in anticipation of a future increase.

What is the anti-martingale system?

The anti-Martingale, or reverse Martingale, system is a trading methodology that involves halving a bet each time there is a trade loss and doubling it each time there is a gain. This technique is the opposite of the Martingale system, whereby a trader (or gambler) doubles down on a losing bet and halves a winning bet.

What is a martingale betting strategy?

For the martingale betting strategy, see martingale (betting system). In probability theory, a martingaleis a sequenceof random variables(i.e., a stochastic process) for which, at a particular time, the conditional expectationof the next value in the sequence is equal to the present value, regardless of all prior values.

How do you calculate a martingale?

In other words, it is a sequence of random variables such that for any time n:E (X n + 1 | X 1 …, X n) = X n. The word martingale came from a group of betting strategies that were popular in France in the 18th century.