🎯 Scalping · ⚠ High risk
Martingale system
Double the position after each loss so that any single win recovers all prior losses. Mathematically fragile — one long losing streak wipes the account. Included for completeness; NOT recommended.
Setup
- This is a position-sizing scheme, not a trade-entry strategy — it can be layered on top of any underlying signal
- Base bet size = fraction of account (e.g., 1%). After each losing trade, double the next bet
- A single win recovers all prior losses plus the base bet in profit — mathematically obvious, practically dangerous
Entry
Whatever your underlying signal is — a coin flip, a MA cross, anything. Martingale sizes the trade based on the running loss count only.
Exit
Take profit at 1:1 R:R (a small target). The point is to keep win probability moderately high so the martingale doubles rarely.
Stop-loss
Per-trade stop is a fixed % or point value, matched to the R:R. But there is NO account-level stop in a pure martingale — that is the fatal flaw.
When it works
- Effectively never long-term. Short "hot streak" periods look great but hide the tail risk
- Casinos would let you use this if it worked — they don't, because it doesn't
When it fails
- Any losing streak longer than log₂(account / base) — a 7-loss streak needs 128× base bet
- Real markets have fat-tailed losing streaks that far exceed simple probabilistic assumptions
- Margin/broker limits kick in before the mathematical recovery bet can even be placed
General trading rules that apply
Regardless of the specific setup, these apply to every strategy on this site:
- Never risk more than 2% of your account on a single trade
- Place a hard stop-loss before entering — no exceptions
- Journal every trade: setup, reason, outcome, one lesson
- After two consecutive losses, stop for the session
- Backtest and paper-trade for a month before deploying real capital
Every strategy here is part of our in-house catalogue, written and calibrated for Indian markets. Past behavior does not guarantee future results. Charts run against 2-year Nifty data — actual results in your account will vary. Backtest, paper-trade, and size responsibly before risking real capital.