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We are nearing the end of January and traders are very optimistic about the expected positive recovery of the *crypto* market. If you have followed my [previous pick](https://steemit.com/cryptocurrency/@precise/crypto-trading-pick-2-watch-out-for-the-bounce) you have hit the target with 1 out of three picks. Stellar Lumens (STR or XLM) is now priced at **0.00005530** as of this writing - that's a whooping 23% gain already. The two other coins on the other hand is not **performing** well as expected, Ripple (XRP) and XEM (NEM).  

> By *performing* I meant recovering!

Before the January dive, Ripple (XRP) was on the level above 0.000015+ and XEM(NEM) was breaking 0.00013+ at the start of the year. Fundamentally, there are no other significant negative news or factors that would affect these two coins to go haywire. Except that, they got struck by the January lightning sword! 

I want to share what I called **Martingale Trading**. I have [mentioned this strategy before](https://steemit.com/cryptocurrency/@precise/here-are-3-things-we-can-learn-from-the-recent-crypto-crash) and I want to expound my own version of it here with actual picks! 

Martingale System is an old strategy mostly used in gambling (ie. sports betting, casinos, etc) however recent adoption have been applied to trading. I'm not going to dive into more detailed definition of it but go ahead and do a google search for the keywords - *martingale trading*, *martingale* or *martingale system*.

Here is my version and how I applied it on [my previous picks](https://steemit.com/cryptocurrency/@precise/crypto-trading-pick-2-watch-out-for-the-bounce). 

1. Pick Ripple (XRP) and XEM (NEM) - the coins who have not recovered well
2. Calculate the **amount to invest (A)** for each coin using the formula below: 
> A = (B / p ) + g

>*Where: 
A = The amount to invest on a coin*
*B = The amount invested **previously** on that coin*
*p = the target percentage gain*
g = greediness factor &#128520;

How do we get the target percentage gain? Refer to the table below and take note on [my picks here](https://steemit.com/cryptocurrency/@precise/crypto-trading-pick-2-watch-out-for-the-bounce), you will notice that my target price is my buy price of my previous picks, so if the price recovers to my previous buy, I hit my new target and at the same time I am break-even with my previous buy. 
 
| COIN        | BUY PRICE            | TARGET PRICE  | Target % Gain|
| ------------- |:-------------| :-----|-----:|
| Ripple (XRP)    | 0.00011373| 0.00014113 |24.09%|
| XEM (NEM) | 0.00008281      | 0.00009207    |11.18%|
<sup>* Prices are based from poloniex on the BTC market as of *2018-01-26 02:50 UTC*</sup>

If for some reasons I don't hit my target of the previous pick, I still gain even if at break-even of the previous pick. My gain is equivalent to the amount I originally invested. If the price goes down again, I'll keep on repeating the Martingale technique until all targets are hit. 

**REMEMBER! this is a very risky approach, the disadvantage of Martingale system is if you are on a losing trade, you need a bigger capital and your loss keeps doubling (exponentially)!**




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>*Disclaimer*
Trade at your own risk. The above analysis is my own view and I take no responsibility of your trading behavior. It is best to do your own research and analysis. Take my points lightly :)
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