Martingale is NOT a strategy. It is a type of money management scheme (and not a good one).
You still need an underlying strategy the produces more than a 50% win rate, before you can even consider applying a Martingale on it.
The higher the win rate of the underlying strategy, the longer the Martingale will last before it eventually blows the account (which is guaranteed to happen, sooner or later).
What about using the martingale method for exit instead of entry ?!
That's it, scaling out in a martingale fashion.
Example : Buy 5 Lots. --> Close 0.1 @ +10 pips, 0.2 @ +20 pips, 0.4 @ +30 pips, 0.8 @ +40 pips, 1.6 @ 50 ... and so on.
Just a thought :)
If Martingale worked then somebody would have already made all the money in the world and we would be working for him/her.
Another "great idea" along with Martingale is the "strategy" of getting a losing system and reversing sides: when the system says sell, you buy; when the system says buy, you sell. This is another idea that never works.
Martingale the way it is discussed at length at these forum posts has nothing to do with scaling into and out of positions when you have a long time frame and trading with a trend. This makes good sense if you can do it but you have to understand what the market is doing so you don't end up top heavy, meaning your average price is closer and closer to market prices and any minor reversal causes a very quick loss to accumulate.
Trading is a business and not gambling. And even playing Black in Roulette will end up breaking your bank, that is why people play the numbers, they are gambling and like the thrill of the risk and in a reversal quick highs and lows. Making money in forex is patient investing, calculating risk, protecting your positions, standing aside if you aren't confident of the move etc.
But I know I am talking to "the hand." But good luck.
A pure "Martingale" money management system has an advantage over standard methods in recovering a previously lost position. Problem is most folks are confused by the definition of a martingale and often mistake martingale with an "averaging down system" A pure Martingale refers only to a doubling of the previous stake (lot size). Additionally, will never consist of two or more simultaneous open positions. Discipline in trading also means knowing when to accept the loss and get out of a potential loosing streak. Ideally pair Martingale with a strategy shown rarely to have consecutive losses and know when to accept defeat in a loosing streak.