Martingale
This EA implements a classic Martingale strategy that doubles the lot size after each losing trade while resetting to the initial lot size after a win. It opens positions based on a simple directional signal and relies on the probabilistic assumption that a winning trade will eventually occur to recover all previous losses.
Open the interactive view (equity curve, symbol switch)Key facts
Backtest results (H1, about 1 year)
| Symbol | P&L | Annual | Max DD | Trades | Win rate | Sharpe | Recovery | Losing streak | Per trade | Status |
|---|---|---|---|---|---|---|---|---|---|---|
| EURUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| GBPUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| USDJPY | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| XAUUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
Why this EA never traded: no entry rule survived the conversion.
Converted from MQL5 to Python and run with the same rules for every EA. Positions use MT5 lot sizes (100,000 units per FX lot, 100 oz per gold lot) with 1:100 leverage, one order at a time, and a stop-out below 10% of the starting balance. Sharpe is computed from the equity curve. Results marked as unreliable are shown for completeness only.
Blow-up risk: High
- Increases the position size after losses (martingale)
- Has no stop loss or trailing stop
High: stopped out in our backtest, or martingale/grid sizing without a stop loss. Elevated: martingale or grid sizing with a stop loss, or several positions at once without a stop loss. What the label means and what we found →
Strategy analysis
The core concept is the classic Martingale doubling method: doubling the bet after each loss, expecting a single win to recover all previous losses. Entry conditions are typically based on simple directional signals or fixed direction assumptions without complex indicator combinations. Exit conditions trigger when a profit target is reached, closing the position and resetting the lot size; on losses, instead of closing, the EA doubles the lot size and opens a new position. Position sizing follows a geometric progression (1x, 2x, 4x, 8x...), causing lot sizes to grow extremely fast during consecutive losses. Money management has virtually no protective mechanisms, lacking maximum loss limits or maximum lot size caps. The greatest risk is that consecutive losses cause exponential depletion of account funds, potentially leading to a margin call or account blowout. Overall, this is a high-risk gambling-style strategy that lacks the capability for long-term stable profitability.
Strengths
- Simple and intuitive logic, easy to understand and implement
- May achieve stable small profits in the short term during ranging markets
- Lot size reset after profit can lock in partial gains
Weaknesses
- Lot size grows exponentially during consecutive losses, extremely prone to account blowout
- No stop-loss mechanism or maximum loss limit, money management is severely lacking
- Not suitable for trending markets, one-sided moves cause catastrophic losses
- Strategy is essentially gambling rather than investing, with negative long-term mathematical expectation
Possible improvements
- Add maximum lot size and maximum consecutive loss count limits to prevent account blowout
- Implement stop-loss mechanism to force close and reset when maximum loss is reached
- Incorporate technical indicators for entry timing to avoid adding positions against strong trends
Risk assessment
Overall risk: Dangerous
- Martingale doubling mechanism exponentially increases risk exposure during consecutive losses
- No stop-loss protection, one-sided market moves can result in total account loss
- Without lot size cap, account blowout is mathematically inevitable
- Lack of account balance check and margin sufficiency verification
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
InitialLot | 0.01 | Initial lot size, resets after profit |
Multiplier | 2.0 | Lot multiplier coefficient for recovery mode |
TakeProfit | 10 | Take profit in points |
MaxLot | 0 | Maximum lot size limit, 0=no limit |
StopLoss | 0 | Stop loss in points, 0 means no stop loss |
Similar Martingale EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.