At DayTraders.com, we prioritize responsible risk management and discourage high-risk strategies that can lead to large losses. For this reason, the Martingale (Doubling Down) strategy is strictly prohibited on our platform.
What Does This Mean?
What is the Martingale Strategy? The Martingale strategy involves doubling the size of your position after each losing trade in an attempt to recover losses with a larger position. For example:
A trader starts with 2 contracts of NQ (Nasdaq futures) and closes the position with a loss.
To recover the loss, the trader enters a new trade with 4 contracts.
If the trader loses again, they then enter a new trade with 8 contracts, and this continues until either a profit is made or the account is blown.
Doubling Down is Not Allowed: Traders are not allowed to increase their position size by 2x or more after losing a trade as part of a Martingale strategy. This applies to all assets and trading instruments.
Consequences of Violating the No Martingale Rule:
Account Review and Suspension: Accounts found to be using the Martingale strategy or any similar doubling down approach will be flagged and reviewed. Violations may result in account suspension or permanent closure.
Profit Forfeiture: Any profits made from using the Martingale strategy will not be eligible for withdrawal and may be forfeited as outlined in our Terms and Conditions.
Why This Rule Exists:
Risk Management: The Martingale strategy can lead to large, uncontrollable losses, especially in volatile markets. By prohibiting this strategy, we promote responsible risk management and prevent traders from engaging in reckless, high-risk behavior.
Encouraging Sustainable Trading: Our platform encourages traders to use sustainable and thoughtful strategies, not strategies that rely on high-stakes, high-risk approaches to recover from losses. The Martingale strategy tends to amplify risk and often results in significant account drawdowns.
How We Monitor for Martingale Activity:
Our system monitors trading behavior for patterns of doubling down on positions after losses. Traders found using the Martingale strategy will face consequences outlined in this rule.
Ensuring Compliance:
To avoid violations, ensure that your position sizes follow consistent risk management principles. Avoid doubling your position size after losses, and instead focus on maintaining discipline in your trading strategy. If you have any questions or need clarification, please reach out to our support team.
For more information on our trading guidelines, please visit our Trading Policy.