Casino strategies in trading
It is obvious that most of the professional traders enjoy gambling. Also, most of the time it goes another way around. But what happens when professional gamblers become traders? They bring their own strategies into the financial trading markets and change them in such a way that they fulfill all their trading needs and, hopefully, bring decent profits. Interested which strategies taken from the casino found their implementation in trading? Then continue reading!
Best casino strategies used in trading
Before getting into details of the strategies, it is important to know their origin. It is commonly perceived that most of the strategies are taken from regular casinos and implemented into both FX and binary options trading. But, in fact, the development of online bitcoin casinos has created additional grounds for strategy creation and testing.
When it comes to strategies that were taken from the gambling and implemented in trading, martingale strategy is the one that stands out. It was developed in the 18th century in France and was proven via both intuitive and mathematical methods. At the beginning, it was developed only for roulette with green and black fields but later it has got wider implementation into trading.
The basics of this strategy suggest that you bet on bullish or bearish trend if you trade with a Forex broker or get a Put or Call order in with binary options brokers. An important thing to keep in mind is that your trade size should be of a specific amount. In case your prediction was correct, you enjoy your profits and make an order in the opposite direction. The same as you would put a bet on black in bitcoin casino roulette and switch to red in the next betting round.
In case your prediction was not successful, you just wait until the expiration time comes or a stop loss level is achieved and put another order. Be aware, in this case you have to double your invested amount and make an order in the same direction as you previously did. You have to continue placing your orders while doubling amount until your prediction will be correct. As soon as this happens, you will receive all your lost amount back as well as some additional profit.
Going into details, game theory suggests that chances of trend heading in a particular direction are 50%, which means that even if you get a few losses, eventually you will be able to enjoy a winning trade. From a first sign it may seem that due to 50% probability, you will not gain anything, but such calculation omits first bet, which is the most crucial one.
As you can see, there is a strategy that can be used in both bitcoin casinos and Forex trading. All you need to do is to stick to the strategy and do not make any decision driven by emotions. But, be aware that this strategy is not recommended for beginners and requires quite a significant (if not unlimited) capital as well as analytical skills in order to be implemented correctly.