Anti-Martingale System

Dictionary Says

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.

Investopedia Says

Investopedia explains '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.

Articles Of Interest

  1. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!
  2. 4 Ways To Predict Market Performance

    There is academic evidence supporting different market views. Learn how and why the market can be predicted.
  3. Forex Trading The Martingale Way

    The Martingale system boasts a 100% success rate, if you have the money. Find out if this is the right strategy for you.
  4. Understanding Forex Risk Management

    There's risk in every trade you take, but as long as you can measure risk, you can manage it.
  5. The Dangers Of Over-Diversifying Your Portfolio

    If you diversify too much, you might not lose much, but you won't gain much either.
  6. The Basics Of Bollinger Bands®

    This strategy has become one of the most useful tools for spotlighting extreme short-term price moves.
  7. Introduction To Treasury Inflation-Protected Securities (TIPS)

    If you want to protect your portfolio from inflation, all you need are a few TIPS.
  8. 6 Asset Allocation Strategies That Work

    Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right.
  9. A Top-Down Approach To Investing

    Use a global view to determine which stocks belong in your portfolio.
  10. How Risk Free Is The Risk-Free Rate Of Return?

    This rate is rarely questioned - unless the economy falls into disarray.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...
  2. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.
  3. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.
  4. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.
  5. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...
  6. Bailment

    The contractual transfer of possession of assets or property for a specific objective.
Trading Center