Martingale II and Currency Trading We can use computer coding to explore game strategies and also to help understand the underlying probability distribution functions. Let's start with a simple game where we toss a coin 4 times, stake 1 counter each toss and always call heads. This would give us a binomial distribution with... Continue Reading →
The Martingale system paradox
https://www.youtube.com/watch?v=Ry3B9hJbBfk The Martingale system The Martingale system was first used in France in 1700s gambling halls and remains used today in some trading strategies. I'll look at some of the mathematical ideas behind this and why it has remained popular over several centuries despite having a long term expected return of zero. The scenario You... Continue Reading →