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A Martingale strategy is a speculative trading approach where the trader doubles their position size after each losing trade, in an attempt to eventually recoup previous losses and make a profit. In forex trading, a Martingale strategy is often used in conjunction with a trend-following system, where the trader increases their position size in the direction of the trend, while reducing their position size when the trend is not in their favor. This approach can be risky, as it assumes that there will be a reversal in the market trend, and also increases the size of losses with each consecutive trade, potentially leading to a complete loss of the trading account.
