Dear friends, I am glad to see you once again on our Thai cryptocurrency channel. Today, I want to tell you about cryptocurrency trading strategy—the Martingale. It now applies to crypto trading in the Stock and Forex Markets, and now it is extensively used by trading bots. There is an opportunity to turn on the Martingale in the settings of the CRYPTORG bot. I will tell you in detail what the Martingale is, how it works, what it’ss for and when it can be turned on.
Martingale on Cryptorg
Let me show you where to go to turn the Martingale on. To create a bot or change its settings we should click on the “Create Bot” button in the “My bots” section, it’s right here, just choose the bot editing menu. In this area, you can enable or disable this so-called “Martingale”. What is it? It ensures that with your next purchase it’ll buy the same value and add 0.05 onto it. Here, you can also set more, such as: 0.1, 0.2, 0.3 and so on up until the value 2. But it is better to leave the default value at 1.05. It includes a complex percentage. In general, the Martingale directly affects your potential profit.
The main advantage of the Martingale is that it allows you to shift the take-profit a little lower when each subsequent order is made, instead of just every other order with a static volume are triggered. The martingale strategy works very well in a growing market—when trading pairs make small kickbacks from the main trend and then make a comeback. Also, it works very well when everything’s flat—when the price is in a narrow price range.
It also works well during the market decline, but the market should go in waves and make strong kickbacks. The Martingale strategy can quickly pull out of drawbacks at minor price rollbacks, but if you fall for a long profit-less trend, you can use up the entire deposit or reach the maximum of SO (Safety Order). You need to be extremely careful when you’re using this method and only apply aggressive settings (over 1.3) when necessary.
The martingale method was invented a long time ago, initially it was used when playing roulette to multiply the previous bet. Many years later, traders realized that this technique could be effectively used for profitable trading in the financial markets. Initially, the martingale was quite primitive and each previous one was doubled, which is a rather aggressive version of the Martingale, and it is only used by a few people now. But the more common option includes using the martingale with various multiplying factors. This is especially common when trading robots.
Martingale’s Work Pattern
Consider creating a trading bot with a martingale ratio of 1.1, using our bot as an example.
Trading pair: USDT / BTC
The volume of the first order: 10 USDT
Price deviation for placing a safety order (% of the value of the initial order): 1%
Martingale Ratio: 1.1
Please note that when you activate the Martingale, the option for placing the volume of the Security Order disappears—the bot will instead calculate each SO based on the parameters of the set martingale coefficient combined with the volume of the initial order. In our variant, the coefficient is set at the level 1.1—this means that each subsequent order following the initial one will be multiplied by 1.1 and will then be increased in volume. The number of safety orders per transaction is 10. The number of simultaneously active safety orders is set at 5
Just move the slider and select the desired ratio. Let’s calculate how much USDT in total will be spent if all 10 safety orders work, when the martingale ratio is set at 1.1:
1 order $10, 2 – $11, 3 – $12.1, 4 – $13.31, 5 – $14.64, 6 – $16.1, 7 – $17.71, 8 – $19.48, 9 – $21.42, 10 – $23.56
So, it is clear that even with an insignificant use of the multiplying coefficient, the initial rate will double and would’ve reached $ 21 on the ninth order, the sum of all ten orders will be $ 159.32. With just the static settings for transaction volumes, the sum of 10 orders would be $ 100. This is an example of calculating the cost of a Take Profit order.
Martingale Calculation Table
Now, I want to show you the table of calculation in relation to profit when using Martingale. Source data: 1 tugrik = $ 50. Next, we have the field “Price”. On the left side of the table, there is available information about Take Profit. In the next column after “Price”, there are columns showing the “Martingale Volume” for its values at 1.1, 1.5 and 2.0. Look at this table carefully and also calculate everything to understand it. In the description of this video there will be a link to the page on the site—botcryptotrade.com—where you can look at this table in the Thai language.
|Price||Volume||Volumes Martingale 1.1||Volumes Martingale 1.5||Volumes Martingale 2.0|
|$50||1 tugr||1 tugr||1 tugr||1 tugr|
|$49.5||1 tugr||1.1 tugr||1.5 tugr||2 tugr|
|$49||1 tugr||1.21 tugr||2.25 tugr||4 tugr|
|$48.5||1 tugr||1.33 tugr||3.37 tugr||8 tugr|
|$48||1 tugr||1.46 tugr||5.06 tugr||16 tugr|
|$47.5||1 tugr||1.61 tugr||7.59 tugr||32 tugr|
|$47||1 tugr||1.77 tugr||11.39 tugr||64 tugr|
|Take Profit, normal averaging||$48.76||7 tugr|
|Take Profit, Martingale 1.1||$48.56||9.48 tugr|
|Take Profit, Martingale 1.5||$48.05||32.17 tugr|
|Take Profit, Martigale 2.0||$47.76||127 tugr|
I think it’s hard to immediately understand how Martingale works. Let me go through it again. Just so that you understand, if your “Martingale” is enabled then let’s calculate how much USDT will be spent for the Martingale, set at a 1.1 ratio, if all 10 safety orders are triggered. For instance, you’ve put 10 insurance, one order is $ 10, then the second order will already be $ 11. We’ll count 10, which we gave, and since the martingale is 1.1, 1.1 x 10, we will already have the second order of $ 11, the third order is already $ 12. It already multiplies $ 12 by 1.1, then the fourth one is already $ 13.31, the fifth is $14.64, well, and when we’ve reached the 10th stop order, it would already equate to $ 23,56.
Just so that you understand, at the tenth move, we’ll have more as our insurance would’ve doubled. This means that if the price goes in our favor, then it’ll be much faster to make your profit back due to the fact that it’ll keep investing more and more over time. But for this you’ll need a large deposit. If you have a small deposit, you’ll still need, I think, at least 15-20-25-30 insurances. It will be necessary to cut your entire amount for such safety measures. This is to avoid having your insurance suddenly end, while you’re investing. Or you’ll be left sitting and waiting. It’s very important to avoid this misfortune from happening.
I have told you, in detail, how Martingale works. To use this strategy for beginners, I repeat, you’ll need to set it at the minimum value of 1.05 or turn it off all together. But if you understand this video tutorial and you have the necessary experience when it comes to trading bots—for example, on CRYPTORG—then you can safely experiment with the Martingale to increase your profits. That’s all. I’ll see you when my new video gets released.