Compared to Martingale, traders sometimes consider Anti-Martingale strategy as the better one. Contrary to Martingale that doubles a position size every time he loses. Anti-Martingale means trader cut his losing trades and double the bet only if he wins a trade.

Martingale is a particularly risky trading strategy originated from gambling practices. Someone who uses martingale opens new position every time his initial position suffers loss; the second position is twice bigger in value than the first. If the second position still doesn't bring fruit, he opens new position in double the second position. That way, the price does not have to turn back all the way for the trades to profit or recover lost grounds. However, such strategy can bankrupt you if price does not revert back.

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Compared to that kind of hazardous money management, traders sometimes consider Anti-Martingale strategy as the better one. Contrary to Martingale that asks for trader to double his position size every time he lose, Anti-Martingale means trader cut his losing trades, and double the bet only if he wins a trade. As it is thought to be safer in increasing trade size when winning, Anti-Martingale is sometimes considered as one of the better ways in betting in the forex market; although it is actually a mistaken assumption.

To understand that, we have to look at how Anti-Martingale is done.

An example of the simplest way of doing anti-martingale is like this:

First, a one lot of long position is opened on EUR/USD at 1.2500. Price moved up to 1.2520, thus while letting the previous trade floats, two lots of long position is opened at 1.2520. However, the price then moved down, so the second position is closed at a loss. Luckily, price then moved up again, and another two lots opened at 1.2530. EUR/USD was trending, so price moved up even further to 1.2550 and motivated the opening of another trades as much as four lots at that point. And so on.

It is easy to imagine gaining multiple profits in a trending market that way. However, when the market moves against us, either in retracement or rebound, that is when all of those gains will turn into minus very quickly. Anti-martingale increases one's exposure to profit, but the bigger lot sizes in later trades means that one loss in the later trade can erase all profits one has gained at the beginning. Furthermore, it must be understood that when a currency is oversold or overbought, the likelihood of a rebound increases. In this sense, anti-martingale's risks is no lower than martingale.

Another aspect of Anti-Martingale Strategy that is quite similar to Martingale is that it can be modified to moderate its risks. For instance, Anti-Martingale Strategy works better in a trending market compared to a ranging market. Lower leverage too, can help trader in making better risk/reward calculation. However, optimum outcome can only be reached only if trader is able to enter and exit the market at the right moments. This is because failure at later trades with the biggest amount of bet may lead to a bigger loss compared to the amount of earlier winning trades.