Martingale is the most well-known financial strategy, which was at first done for the using at the casino. With this strategy you can always be on the plus side even if you lose often. But, this strategy has a high risk, and if you use it thoughtless it can lead you to the financial crash.
Its sense is very simple. The sum of the stake is doubled every time after the loss, and returns to its first meaning for some time after the winning. Let’s pretend, you start bet from 100$, then you lose and the next stake is 200$, then goes the loss again and then 300$ and the winning. And the next stake should be 100$ again. For getting the income while playing this strategy you have to bet on the events with the coefficient not less than two.
For example:
| Stake | Winning | Balance |
| 1 | – | -1 |
| 2 | – | -3 |
| 4 | 8 | +1 |
| 1 | – | 0 |
| 2 | 4 | +1 |
From the example we can see, that with the stake on the events with the coefficient two, we will win, and it doesn’t mean when it will happen. And, besides, the pure income will be equal to…..the sum of the first stake.
Three problems can appear in this case. The two of them are technical: at first you can have lack of money to do next stake, and the second is: the counted size of the next stake can be higher, than the maximal possible size, set by the book-makers. And the third problem is: psychological – after each lost stake, doing the next bigger twice stake is more and more difficult for the nerves.
And by the way, the chances to win, with every next stake aren’t bigger: in general they are the same, as they were during the first stake. That’s why this system can be only recommended to the players, who play with huge sums, and with strong nerves.