This definition is valid for purchases completed before 6th May 2024.
Martingale is described as opening more than one position on certain instrument and in the same direction whilst the first position opened on the same instrument is in drawdown. After that, the technique is then considered to be martingale if any of the following conditions are met:
Any of the consecutive positions is opened at an exponent of more than 1x.
The consecutive positions are opened with any volume but at similar price and at similar time. As a result, the total volume of the similar positions is more than 1x bigger than the original position.
Please find examples bellow. The examples serve only as a way to clarify the individual points. In no way do they present a complete list of prohibited practices or scenarios.
Example 1 - considered martingale
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13:00, buy 1 lot XAUUSD at price 2040
13:05, buy 1.2 lots XAUUSD at price 2038
13:10, buy 1.4 lots XAUUSD at price 2037
Example 2 - not considered martingale
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13:00, buy 1 lot XAUUSD at price 2040
13:05, buy 1 lot XAUUSD at price 2038
13:10, buy 1 lot XAUUSD at price 2037
Example 3 - considered martingale
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13:00:00, buy 1 lot XAUUSD at price 2040
13:05:10, buy 1 lot XAUUSD at price 2038.23
13:05:15, buy 1 lot XAUUSD at price 2038.35
13:10:54, buy 1 lot XAUUSD at price 2037.45
13:11:05, buy 1 lot XAUUSD at price 2037.67