How it works

Martingale, explained the way we'd want it explained to us.

Grit Markets opens a small position, and if the market moves against it, adds progressively larger positions so that a partial reversal closes the whole set in profit. That produces frequent small wins and occasional deep drawdowns. Hard limits decide how deep. That is the entire strategy — no black box.

The sizing math

Each level doubles. So does the damage a bust does.

With a 0.01 base lot and a ×2 multiplier, level seven trades 64 times the base size, and the whole sequence has committed 127 times the base exposure. This table is the reason the max-level cap exists — and the reason we publish it.

Position size per Martingale level at base lot 0.01 and multiplier 2
Level	Lot	Cumulative lots
1	0.01	0.01
2	0.02	0.03
3	0.04	0.07
4	0.08	0.15
5	0.16	0.31
6	0.32	0.63
7	0.64	1.27

Illustration at multiplier ×2 — configurable in the EA

The lifecycle

Four states. Nothing hidden between them.

01
Scan
Within your configured session windows, the engine scans its market for a qualifying entry. Outside a window, or around filtered news events, it does nothing.
02
Enter at base lot
Every sequence starts at the smallest size — the base lot you set. A winning first trade closes the sequence with a small profit, which is the most common single outcome.
03
Recover with compounding size
If price moves against the position by the step distance, the engine adds a larger position — multiplied at each level — so a reversal to a nearer price closes the whole set profitably. This is the Martingale core, and it is where the risk lives.
04
Hit a limit, take the loss
If the sequence reaches your max-level cap or floating losses reach your equity stop, the engine flattens everything and realises the loss. A bounded loss taken on purpose is the feature; unbounded averaging is the failure mode we refuse.

What can go wrong

The failure modes, before you pay us — not after.

The long adverse run

A strong trend without meaningful pullbacks can walk a sequence straight to its maximum level. When that happens the realised loss is many times larger than the wins that preceded it. The simulator on the home page shows how often this occurs at your settings.

Gap risk

Weekend gaps and news spikes can jump past step prices and stop levels. The news filter reduces exposure to scheduled events; it cannot remove gap risk entirely.

Margin exhaustion

Deep sequences demand margin exactly when floating losses are largest. Undersized accounts get margin-called before the sequence can resolve — which is why the max-level cap and equity stop exist, and why base-lot sizing matters more than any other setting.

Run the numbers yourself

The controls

Four hard limits stand between the ladder and your account.

Equity stop

ARMED

trigger: account equity %
action: flatten all + halt
default: −8.0%

An account-level circuit breaker. If floating losses reach your configured equity threshold, the engine closes the whole sequence and stops trading — it will not average down into a margin call.

Max-level cap

ENFORCED

range: 2 – 10 levels
sizing: geometric per level
default: 6

A hard ceiling on how many recovery steps the Martingale sequence may take. Lower caps mean smaller worst-case losses and more frequent realised losing sequences — that trade-off is yours to set.

News filter

WATCHING

source: economic calendar
action: no new sequences
window: configurable

High-impact releases produce the gaps and spread spikes that hurt averaging strategies most. The filter blocks new sequences around scheduled events you select.

Session filter

SCHEDULED

windows: per-day trading hours
timezone: server time
action: scan only in-window

Restricts the engine to the market hours you choose, so sequences are not opened into thin, erratic liquidity outside your intended session.

Risk controls bound losses; they do not eliminate them. Tighter caps mean smaller worst cases and more frequent realised losing sequences. No configuration of Grit Markets removes the risk of losing capital.