[Basic concepts of Martin strategy]
Martingale strategy is a strategy commonly used in gambling, investment and other fields. The basic idea is to double your investment after failure in order to achieve the ultimate profit. The assumption of this strategy is that because the probability of random events is fixed, failure is temporary and a profit will eventually be achieved. But in reality, this strategy is very risky, as failures can be persistent, leading to a lack of funds.
Martin is a strategy based on capital position management. It is one of the most common and fundamental strategies in financial trading and gambling. After a loss, increase the multiple to open a position, wait for a correction, and even out all losses. In order to improve efficiency, Martin will always increase his position in the future and use multiple positions to increase his position, thereby obtaining a relatively small retracement leveling point.
We released "A Binance-Based Spot Chasing 0/1.2% + Little Martin Strategy 17.2%/1.2%/6 Position Strategy" on February 23, 2023 (see Note 1), then if we use Fibonacci What will be the effect of using a Martin strategy using a sequence of deeds?
Note 1: https://www.binance.com/zh-CN/feed/post/214885
[The principle of Martin strategy]
(1) If there is a shock, there will be a trend, and if there is a trend, there will be a correction;
(2) If the market goes in the opposite direction, control the position and continuously increase the position in the opposite direction to reduce the average position cost until you exit with a profit after the market correction.
[Explanation of Fibonacci Sequence]
The Fibonacci Sequence is a series of numbers where each number is the sum of the previous two numbers. The sequence starts with 0 and 1, and each subsequent number is the sum of the previous two numbers. For example: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. The Fibonacci sequence has several interesting properties and is often used in mathematics, finance, biology, and other fields. It is named after the Italian mathematician Leonardo of Pisa, also known as Fibonacci, who first introduced it to the Western world in his book Liber Abaci.
[Strategy Applicable Market]
Market volatility and rising prices
[Strategy applicable trading pairs]
Mainstream currencies and some popular currencies
[Strategy Applicable Exchanges]
Binance
[Strategy model parameters]
Currency: Top 30 currencies available by market capitalization
Single currency simulated principal: 15,330U (adjusted according to the actual situation of the user, the same below)
Number of warehouses: 10 warehouses
First position capital: 30 U
Simulated resistance to decline: 54%
[Strategy Model Description]
(1) Martin strategy can make up for the previous losses and make a profit by winning once, and the profit is very large.
(2) The Martin strategy is different from the grid strategy. Proper position control can reduce the position amount and reduce floating losses after closing the position at one time.
(3) The Martin strategy tested this time is a method with a large interval, which is more suitable for mainstream currencies, altcoins and other currencies.
(4) The Martin strategy we designed will immediately buy the first position after closing the position at one time to ensure that a certain position exists in real time.
(5) In fact, considering the one-time closing of positions to release funds, in most cases the position funds of this strategy will not reach the total principal. Generally, we use the precipitated funds for other transactions. For example, the futures risk-free arbitrage strategy can and implemented, greatly improving the efficiency of fund use.
[Strategy Risk Tips]
If the Martin strategy funds are not enough to support the continuous increase of positions, it is very easy to make arbitrage, so remember to manage the position.
【Strategy Simulation Test】
Operation cycle:
Position principal:
Cumulative income:
Number of orders:
Turnover:
Floating loss:
Cumulative rate of return:
Annualized income:
[Simulation test-position principal]
[Simulation Test-Profit]
[Simulation Test-Floating Loss]
The above is derived from real-time data from Binance, but does not take into account market depth and does not represent real transactions.#dyor#xiaoyiclub#ETH#btc #Binance