No, martingale trading is not allowed.
What is Martingale?
Martingale is a strategy where a trader increases position size after a loss or while the original position is still open, hoping to recover all previous losses with one win. This includes gradually adding smaller positions that together exceed the original position size. Even if smaller lot sizes are used, adding to losing trades or during drawdowns increases the notional volume and is considered a form of martingale.
While this approach may appear to offer a quick way to recover losses, it carries significant risks and is therefore prohibited.
Why we don’t allow Martingale:
- Unlimited capital needed: Each loss requires doubling position size, which quickly becomes unsustainable.
- High risk of account wipeout: A short series of losing trades can deplete your account balance.
- Emotional stress: Increasing trade sizes after losses often triggers revenge trading, further compounding risks.
What’s allowed instead?
Traders can safely hedge positions using equal or smaller trade sizes:
Safer alternatives to Martingale:
- Focus on high-quality trade setups instead of attempting to recover losses quickly.
- Keep position sizes consistent and proportional to your account balance.
- Always set clear stop-loss levels before entering a trade.
By following these principles, you can manage risk more effectively and maintain sustainable trading practices.