What is the martingale strategy in forex?

What it means

Doubling after every loss guarantees that the first win recovers everything plus one unit — provided the account can fund the sequence. Ten consecutive losses require a position 1,024 times the original, which no retail account can support.

Why it matters

This is why martingale systems produce beautiful equity curves for months and then a single vertical drop to zero. The curve is not evidence the method works; it is evidence the terminal sequence has not arrived yet. Every martingale account eventually meets one.

What this changes in practice

It is worth naming plainly because a large share of the EAs sold on marketplaces are martingale or grid systems with the mechanism described in euphemisms — "smart recovery", "averaging", "no stop loss needed". If a product cannot show you its stop loss, it is telling you where the risk went. Ours risks a fixed percentage and never increases after a loss.