Roulette strategies in online trading
Roulette is a game of chance, and classified as such, because it involves the prediction of future events. In this sense, it is similar to online trading. Traders have to predict how a currency, stock or other financial asset will be valued in the future, while roulette players have to predict where the ball will land.
The games are completely different, of course, but traders can certainly learn a thing or two from the roulette players. The first thing is that you need a strategy in both cases, and these are some strategies used in roulette:
The martingale system
Invented in the 19th century, this gambling strategy quickly became a favourite among anyone involved in games of chance. To explain the system, take the flipping of a coin. A coin flip is used to decide everything from the kick-off in a game to philosophy, because it’s only by chance that one can know the side on which the coin will land. Under the martingale system, a play of online casino games would start betting on the coin flip, and then double their bet when they lost and maintain the same bet size when they won.
This is how a hypothetical situation could be:
- the first flip – after betting $1 on heads, it lands heads, a win, $2 total and $1 return
- the second flip – again bet $1 on heads, a loss. The return is wiped out
- the third flip – double the bet to make it $2; a loss, with a $2 deficit
- the fourth flip – double the bet to $4; a loss, with a $6 deficit
- the fifth flip – double the bet to $8; a win, $16 total with a $2 return
This system goes on and on to infinity, ensuring that every winning bet covers all the losses and leaving a return. This system works on the idea that it is impossible to land on the same result to infinity in a game of chance. Roulette players use this strategy, and in the end enjoy a return from the game.
When trading online, the same idea works because the markets are always in an up and down movement, and it is virtually impossible for them to go in one way to infinity. Using the martingale strategy, the online trader can ensure the winning trades cover all the losses and leave a return on top.
Fibonacci roulette system
The Fibonacci progression of numbers is used as an example to show that there is indeed some order in nature instead of chaos. Even when playing roulette, the players acknowledge that there is some order in the game, despite seeming like a complete game of chance. The players use the Fibonacci progression to determine which squares and numbers they are going to bet on.
In online trading, the Fibonacci retracement is a very powerful tool that has been in use to make some very profitable trades. The most recent example is the projection by the analyst Nicola Duke at Forex Analytix who predicted ahead of time the fall in bitcoin prices using this tool. Thus, online traders can borrow this trading strategy from the roulette players.