Trading Styles
Advanced
Martingale
Doubling position size after every loss — recovers all prior losses with one win, but blows up on long losing streaks.
Definition
Mathematically guaranteed to break any finite account given a long enough losing streak. Martingale-based EAs can show smooth profits for months, then wipe out an account in a single bad week.
Often disguised in product marketing as ‘recovery mode’ or ‘smart martingale’. Approach with extreme caution.
Example
Lose 1 lot, double to 2. Lose, double to 4. Lose, double to 8. Lose, double to 16. After 6 losses you'd need 64 lots to recover — most retail accounts are gone before that point.
Why it matters
No risk management can save a true martingale strategy. The system's exposure scales exponentially, so a single extended bad run zeroes the account.