MartinGaleBreakout
This EA combines a breakout trading strategy with a Martingale position sizing system. It enters trades on price breakouts of defined ranges and doubles the lot size after each consecutive loss, aiming to recover previous losses with a single winning trade. The strategy inherently carries exponential risk due to the Martingale progression.
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 strategy of this EA combines breakout trading with Martingale money management. Entry conditions are based on price breaking above or below a predefined range or channel boundary — a breakout above the upper boundary triggers a buy, while a breakout below the lower boundary triggers a sell. Exit conditions rely on a take-profit target; positions are closed when price reaches the set TP level, while stop-loss may exist but is typically set wide to avoid frequent triggering. Position sizing employs the classic Martingale method: starting with an initial lot size, the lot size is doubled after each losing trade, and continues doubling on consecutive losses until a win occurs, at which point the lot size resets to the initial value. In terms of money management, since lot sizes grow exponentially, the account must have sufficient capital to withstand multiple consecutive losses or face margin call. Overall, this strategy performs poorly in choppy markets where consecutive losses can rapidly deplete the entire account balance.
Strengths
- Simple and clear strategy logic that is easy to understand and parameterize
- Breakout entries can capture significant moves when trends are well-defined
- The Martingale mechanism theoretically allows recovery of all prior losses with a single win
Weaknesses
- Martingale lot sizing grows exponentially — consecutive losses can rapidly deplete account funds leading to margin call
- Breakout strategy generates frequent false signals in choppy/ranging markets, causing consecutive losing trades
- Lacks effective risk control mechanisms to limit maximum drawdown; equity curve tends toward a sawtooth decline
- Does not account for spread and slippage impact on short-term breakout trading; actual performance may fall far below backtesting results
Possible improvements
- Add a maximum drawdown limit and a hard cap on Martingale progression levels; stop trading and reset lot size when thresholds are exceeded
- Add a trend filter (e.g., moving average direction or ADX indicator) to only execute breakout entries when the trend is confirmed, reducing false signals in ranging markets
Risk assessment
Overall risk: Dangerous
- The Martingale lot-doubling mechanism causes exponential position growth during consecutive losses,easilyleading to account blowup
- Breakout strategy generates numerous false signals in ranging markets, accelerating the accumulation of Martingale progression levels
- Lacks account-level hard risk controls that could forcibly terminate dangerous position progression
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
InitialLot | 0.01 | Initial opening lot size |
Multiplier | 2.0 | Martingale multiplier, lot size multiplied after loss |
TakeProfit | 50 | Take profit in points |
StopLoss | 500 | Stop loss in points |
BreakoutPeriod | 20 | Breakout range calculation period |
MaxMultiplierLevel | 10 | Maximum Martingale progression levels |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.