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Martingale Trading

Understand how Martingale strategies are treated and what constitutes a violation.

Martingale-style trading is strictly prohibited on Flagship Funded accounts.

This strategy introduces excessive risk exposure and undermines sustainable trading practices.


What is Martingale Trading

Martingale is a strategy where traders:

  • Increase position size after a loss

  • Attempt to recover previous losses with larger trades

  • Continue scaling exposure during drawdowns


Examples of Martingale Behavior

Behavior

Description

Lot Doubling

Increasing lot size after each losing trade

Grid Averaging

Adding multiple positions against a losing trade

Recovery Scaling

Increasing risk to recover losses quickly


Why It Is Not Allowed

Martingale strategies:

  • Expose accounts to rapid drawdown breaches

  • Create unrealistic risk profiles

  • Can destabilize platform risk management systems


Violation Handling

If Martingale behavior is detected:

  • Profits generated from such activity may be removed

  • Account may be placed under review

  • Severe or repeated violations may lead to account breach or termination


How to Stay Compliant

  • Maintain consistent risk per trade

  • Avoid increasing exposure after losses

  • Use structured risk management strategies

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