Antimartingale – What it is, definition and concept

The antimartingale technique consists of doubling the amount invested when the last investment has paid off. In the case of losses, the next investment will be made with half the capital of the previous one.

That is, the antimartingale is a way of investing whereby the money placed is doubled when profits are made, while it is reduced by half when losses are suffered.

In the world of gambling and investing, you can manage your capital in different ways. The main objective of the manager of the capital is not to accumulate economic losses, but to generate profits.

It is very important to choose the right strategy as it will significantly influence the outcome of a set of investments. Simplifying, imagine that you enter a casino and have a budget of € 15 to play roulette, well, the concept that we are going to explain in this article is a technique to manage that money.

Martingale, the opposite of antimartingale

Before explaining the concept of antimartingale, we will start by defining martingale. It is a totally opposite technique that establishes investment patterns according to certain circumstances.

The Martingale technique consists of doubling the capital invested when an investment makes a loss and halving the capital invested when it produces a profit.

Returning to the case of roulette, suppose that of the $ 15 that we have available we decide to play $ 5 to which it comes out black and, after throwing the roulette, it comes out red. Well, following this technique, in the next play we will invest $ 10 to come out black.

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Suppose that now black comes out and we win $ 20, the next move we will play again, but with $ 5. Finally, our balance will be the result of adding those obtained in each play, in this case it would be:

Result: -5 $ + 20 $ = + 15 $

What is the antimartingale technique?

The antimartingale technique is totally opposite to what we have seen with the previous example. When an investment generates profits, the capital invested is doubled on the next play. On the contrary, when it generates losses, the invested capital is reduced by half.

The objective is to take advantage of a hot streak to maximize profits and, in the event of losses, reduce the amount invested until there is a change in results.

It should also be clarified that it is not strictly necessary to double or halve the capital invested depending on the result, it can be done with higher or lower percentages.

Example of antimartingale

Suppose you are investors in the stock market and we want to use the antimartingale technique to manage our capital and make a profit. Our investment strategy will consist of buying an asset every day and selling it the next day.

Remember that the day we obtain benefits, the investment the next day will be double. Whereas if an investment generates losses, the next day we will invest half of the previous day.

Next, we leave you a table with the operation number, the invested capital and the result obtained:

Antimartingale Example

The result of these operations is a profit of $ 22 (Adding all the results: -10 + 5 + 15-20 + 7 + 25). However, it is important to consider the risk of these types of techniques. When capital is doubled in an investment, it must be borne in mind that losses can also be doubled and destroy the investor’s available capital.

In summary, the antimartingale technique is used in both gambling and investment. It consists of doubling the invested capital when the last investment has paid off and halving the invested capital when there have been losses.

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