The martingale is a relatively simple ** betting strategy**. It consists of doubling the bet after every loss so the first winning hand gives a total win equal to all losses combined plus the amount of the original bet.

The conditions so that the martingale is profitable are

- That the win probability is close to 50%
- That a win would win back 100% of the original bet.

For example, in the coin game ** heads or tails**, you win back your bet if you win, otherwise you lose it. Suppose your initial bet is $1 and you lose the first round. At your next turn, you bet $2 and you lose again. You then bet $4 and you win. You will have won back your loss of $1+$2=$3 and you will have won $4 on the last turn, giving a total winning of $1 (equivalent to the original bet).

This strategy can be applied to

**. For example, you open a position fixing a stop loss and goal of making $100. If you lose, you open a second position with a stop loss and a goal of $200, and so on,**

__trading__**. In the end, you will have won $100.**

__until you get a winning trade__From a statistical viewpoint, if you have great ability to double the bet, you will have a

**. But as you will see in the simulation tool, the more you tolerate a great number of successive losses, the more your capital will have to be for a**

__great probability of winning__**.**

__relatively small gain__The martingale simulator takes into account 3 factors:

- The maximum
you think you will reach in the worst case scenario.__number of successive losses__ - The
__initial bet__ - Your total
__capital__