Martingale strategies, which involve opening multiple positions with increasing volumes on the same asset in the same direction when the initial position is in a drawdown, are restricted. These aggressive trading techniques carry significant risks, as they assume inevitable wins while ignoring the potential for substantial losses. Conversely, cost-averaging strategies, which involve consistently investing fixed amounts at regular intervals regardless of asset prices, provide a structured, risk-controlled approach and are permitted.
A strategy is classified as Martingale if any of the following conditions apply:
Subsequent positions are opened with a multiplier greater than 1x.
Additional positions are opened at similar prices and times but with varying volumes, leading to a total volume exceeding 1x of the original position.
Violating these conditions results in an account breach and challenge failure.
Below are examples for clarification. These examples illustrate specific cases but do not represent a comprehensive list of prohibited practices or scenarios.
Example 1 – considered martingale (not permitted)
- 12:30, buy 1 lot XAUUSD at price 2100
- 12:35, buy 1.5 lots XAUUSD at price 2095
- 12:40, buy 2.0 lots XAUUSD at price 2090
Example 2 – not considered martingale (permitted)
- 12:30, buy 1 lot XAUUSD at price 2100
- 12:40, buy 1 lot XAUUSD at price 2090
- 12:55, buy 1 lot XAUUSD at price 2065