Why We Don't Use Martingale or Grid

Following on from my last article: back when I traded by hand, I didn't just skip the stop loss and move it away. Another thing I did all the time was average down blindly, hoping that if the chart went the wrong way, it had to come back eventually. Part of it was that I couldn't yet pick my averaging levels well. But I have to admit the other part was that refusing to give up clouded my judgement.

Grid: a beautiful curve, until a strong trend

Averaging down, or trading a grid with orders set at fixed distances, gives you a genuinely impressive curve. The equity line climbs in a steady staircase, and plenty of trading bots on the market work this way. Its appeal is real: it suits traders who love a high win rate, and it generates cash flow very well in a sideways market.

But when the chart trends hard and smashes through every support and resistance, no amount of buying the dip can hold it. At some point, fighting the market, you have to ask yourself: does this way of trading really suit me?

Martingale: winning often, until the account can't take it

Martingale means doubling the lot size, or more, step by step. It's an advanced way of rescuing a losing trade, and its strength is a very high win rate. It may suit traders who accept averaging down and are happy to wait for the pullback.

The problem with doubling up is that with a small account and a low margin level, martingale can lead to disaster very easily. Before the chart turns your way and you can close everything out, the account is already gone.

What we chose after getting burned

You get hurt, you learn. So from now on, every bot we design and build follows a clear rule:

• A stop loss controls the risk on every trade
• The lot size comes from the % risk you set per trade. No doubling up to win it back
• A loss is a loss, as planned. The next trade takes the same risk

That's why our curves aren't a smooth staircase. You'll see dips and drawdowns, out in the open, as the market changes, because we believe in showing the risk profile plainly in every way: in our backtests and our live accounts on Myfxbook.

No style is right or wrong

All that said, friends, no trading style is right or wrong. Grid and martingale suit people who like a high win rate. Controlling risk with an SL/TP on every trade suits people who like clarity and peace of mind on every trade. It comes down to your goals: choose the system that fits your style and your investment goals best.

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