Martingale trading is a popular strategy in theforex (FX)markets. There are several reasons why using martingale is a safer strategy in the currency market than investing in other assets or gambling. Currencies, unlike stocks, rarely drop to zero. Although companies can easily go bankrupt, most ...
We know that when n tends to infinity, all M[i] tend to zero meaning that all terms of our sum tend to 0 in case the number of strategies is finite, while the number of deals is infinite. This, in turn, means that the general expected payoff M0 is still equal to 0. If we thin...
The Radon–Nikodym derivative is a fundamental concept in measure theory and probability theory, especially when changing between two probability measures. Let P be the real-world probability measure, and Q be another measure that is absolutely continuous with respect to P (meaning that any event ...