The Martingale System (also known as the Martingale Strategy) is a risk-seeking method of investing. The main idea behind the Martingale System is that statistically, you cannot lose all of the time, and thus you should increase the amount allocated in investments—even if they are declining in value—in anticipation of a future increase Martingale strategies rely on the theory of mean reversion. Without a plentiful supply of money to obtain positive results, you need to endure missed trades that can bankrupt an entire account. It’s also important to note that the amount risked on the trade is far higher than the potential gain. Despite these drawbacks, there are ways to improve the Martingale Strategy that can boost your chances of succeeding. The Martingale System is commonly compared to betting in a casino with the hopes of breaking even. When a gambler who uses this method experiences a loss, they immediately double the size of the next bet. By repeatedly doubling the bet when they lose, the gambler, in theory, will eventually even out with a win.( )