Money management technique – learn anti-martingale approach on Binomo

Being well-prepared is crucial for your trading performance. Creating a trading plan that includes money management techniques is very important. You should think it well through. Learn different strategies, try them out and decide which works fine for you. Today I will present the anti-martingale approach. Let’s get started.

Anti-martingale money management technique

It is quite probable that you have heard of the Martingale money management. In this strategy, every time your trade brings a loss, you increase the amount of money invested in the following trade. Moreover, when your transaction wins, you decrease the invested amount.

Today’s technique is something totally opposite. When your position ends up in a loss, next time you reduce by half the amount of money invested. And when your trade wins, you invest twice as much at the next entry.

Such an approach may generate lower profits than the Martingale strategy, however, it carries much less risk.

The anti-martingale approach in practice

Now you know how the anti-martingale strategy works. Let’s see how to trade with it.

You have to determine the quote you will start with. Below, you will find a table with 10 consecutive trades where in the first trade $10 was invested. You have to make the market analysis and open a position according to your predictions about the future price movement.

In our example, the first trade was a winning one, so in the second one, you put $20. Unfortunately, this time you have lost. It means you should reduce the invested amount by half, that is you invest $10 at the next entry. You win, so you increase the amount up to $20. You win again, so again, you double the investment up to $40. With a loss in the 5th trade, you should reduce the amount so next time you invest $20. And in such a way you continue.

Our series of 10 trades have brought at the end $60 profit.

It is possible to generate profits with the anti-martingale system. There is, however, no guarantee. The market is changing all the time and many factors have an impact on the price behaviour. Always make a proper analysis and focus on protecting your account balance. The anti-martingale approach helps in this task.

Final words

Different money management strategies exist. You should find something that fits your skills and risk tolerance. Preserving money in the account is the first thing you should take care of. The time to make profits will come. You will not be able to earn them if you lose all the money, though. So protect the capital you have and then, slowly, work on increasing it.

Remember, in the anti-martingale strategy, you increase the invested amount after the winning transactions and decrease it after you experience loss.

There is a demo account on the Binomo platform where you trade with virtual cash. Just open one if you have not done this yet and check the anti-martingale money management system there. Once you discover whether it is something for you, you can move to the live trading account.

Trade considerately!