Drawbacks of the Martingale Strategy\n\n The risk-to-reward ratio of the Martingale Strategy is not reasonable. While using the strategy, higher amounts are spent with every loss until a win, and the final profit is only equal to the initial bet size. The strategy ignores transaction costs associated with every trade.

Summary: The Martingale Strategy states that when a trader experiences a loss, they should immediately double the size of the next bet. By repeatedly doubling the bet when they lose, the trader will theoretically even out with a winning trade at some point.