Martingale Strategy

• Martingale Strategy
  

1. The Martingale Strategy is a strategy of investing or betting introduced by French mathematician Paul Pierre Levy.
2. It is considered a risky method of investing.
3. It is based on the theory of increasing the amount allocated for investments, even if its value is falling, in expectation of a future increase.
4. When the Martingale Strategy is used in trading, the trader must double the position size when faced with a loss.
5. The Martingale system is a methodology to amplify the chance of recovering from losing streaks.
6. The amount spent on trading can reach huge proportions after just a few transactions.
7. If the trader runs out of funds and exits the trade while using the strategy, the losses faced can be disastrous.
8. The risk-to-reward ratio of the Martingale Strategy is not reasonable.

• Calculating the Breakeven Point (BEP)
  

1. Current Total Investment = (1*BTC@49348.17) + (2*BTC@39342.32) + (4*BTC@21117.39) = 212502.25
2. Breakeven Point = Current Total Investment / (Total Number of BTC) = 212502.25 / 7 = 30357.48