Anti-Martingale System

DEFINITION of 'Anti-Martingale System'

A system of position sizing that correlates the levels of investment with the risk and portfolio size. An anti-Martingale strategy involves halving your bets each time you lose a trade, and doubling them each time you win a trade.

BREAKING DOWN 'Anti-Martingale System'

The assumption of the anti-Martingale system is you can capitalize on a winning streak by doubling your position. In contrast, a Martingale strategy requires the trader to double his bet each time he loses, and hope to eventually recover those losses and make a profit with a favorable bet. The anti-Martingale system accepts greater risks during periods of expansive growth and is considered a better system for online traders, because it is less risky to increase trade size during a winning streak, than during a losing streak.

The anti-Martingale system, along with the Martingale system and speculation, is one of three basic ways for forex traders to bet on the market.



RELATED TERMS
  1. Martingale System

    A money management system of investing in which the dollar values ...
  2. Equivalent Martingale Measures

    In asset pricing, a probability distribution of expected payouts ...
  3. Financial System

    A financial system can be defined at the global, regional or ...
  4. Position Sizing

    The dollar value being invested into a particular security by ...
  5. Spread Betting

    A type of speculation that involves taking a bet on the price ...
  6. Double Up

    An investing strategy in which a trader doubles his or her current ...
Related Articles
  1. Trading

    Forex Trading The Martingale Way

    Martingale's mechanics involve an initial bet; however, each time the bet becomes a loser, the wager is doubled such that, given enough time, one winning trade will make up all of the previous ...
  2. Financial Advisor

    A Day In The Life Of A System Trader

    Systems traders divide their time between trading, developing, backtesting, optimizing and forward testing, to create viable and high-probability trading systems.
  3. Managing Wealth

    Interpreting A Strategy Performance Report

    These key performance metrics will help you decide if your trading strategy is a winner.
  4. Trading

    Top 4 Things Successful Forex Traders Do

    By blending good analysis with effective implementation, you can dramatically improve your profits in this market.
  5. Trading

    Position Sizing: The Way To Profit In Forex

    Position sizing will account for the quickest and most magnified returns that a trade can generate.
  6. Trading

    10 Steps To Building A Winning Trading Plan

    It's impossible to avoid disaster without trading rules - make sure you know how to devise them for yourself.
  7. Investing

    Inside National Payment Systems

    Investopedia explains: The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
  8. Markets

    When and How Can Spread Betting Be Profitable

    Providing tax-free income in some countries, spread betting can be highly profitable. Investopedia provides important points for success.
  9. Trading

    Understanding Financial Spread Betting

    Investopedia explains the logic behing financial spread betting.
  10. Trading

    4 Reasons Why You Need A Forex Trading Journal

    Most brokers will provide you with trade records, but it's also important to keep track on your own.
RELATED FAQS
  1. How do I pick the best method for forex system trading?

    Discover how to identify the best type of forex system trading style for you based on your available time, your trading preferences ... Read Answer >>
  2. What is the difference between a capitalist system and a free market system?

    Learn about capitalist and free market systems, how these economic systems function and the main difference between capitalism ... Read Answer >>
  3. How do I implement a Forex Signal System into a forex trading strategy?

    Learn how traders use different types of forex signal systems such as trend-based or range-based to create or supplement ... Read Answer >>
  4. What are some examples of financial spread betting?

    Learn how financial spread betting is done, and see examples of some of the ways that investors can use spread betting as ... Read Answer >>
  5. What is the difference between systemic risk and systematic risk?

    Systemic risk is generally used in reference to an event that can trigger a collapse in a certain industry or economy, whereas ... Read Answer >>
  6. Is financial spread betting considered an investment?

    Learn about the basics of investing in spread betting and how investors protect investments from loss when using this risky ... Read Answer >>
Hot Definitions
  1. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  2. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  3. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  4. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  5. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  6. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
Trading Center