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What is the definition of Martingale Trading and Aggressive Averaging?

Updated over a week ago

❌ Definition of martingale & aggressive averaging

At Fintokei, we back smart strategies—not risky patterns disguised as discipline.

Martingale-style or aggressive averaging isn’t a strategy we support. It’s a high-risk, hope-based method where traders increase position sizes to chase a recovery after losses—assuming they’ll win eventually.

But markets don’t guarantee anything. And this approach leads to one thing: inevitable blow-ups.


⚖️ So what’s okay and what’s not?

✅ Normal averaging (DCA-style):

Opening positions of equal size at regular intervals to reduce entry price—structured, logical, risk-managed.

🚫 Aggressive averaging (Martingale-style):

Opening bigger and bigger positions while in drawdown, in hopes of a fast reversal and instant profit. It’s not scalable, not repeatable, and definitely not sustainable.

We’re not against risk—we’re against chaos.


🧠 How we calculate it

We compare your entries to what a linear, periodic averaging would look like.

Here’s the logic:

  1. Baseline:
    We take the highest and lowest prices from your group of trades. Then we add a 10% buffer to account for normal volatility.

  2. Check weighted average:
    We calculate your real average entry.
    → If you’re going long (BUY) and your average entry is significantly below the baseline, that’s too aggressive.
    → If you’re going short (SELL) and your entry is above the baseline, same issue.


📏 Key rules and thresholds

  • •A “group of trades” = more than one trade in the same direction on the same instrument, opened while the first one is in drawdown

  • Even if the group ends in a loss—it will be checked

  • We assess this only after 5+ trades are opened on the account

  • It is prohibited to have over 10% of your total lot volume as aggressive averaging

  • First time → we’ll issue a warning

  • From the next day, if it happens again (10%+ volume), the account will be breached

  • If we detect 50%+ of your trading volume used this way at any time → immediate breach, no warning

  • We also check for variations of this logic—regardless of entry/exit times


📌 This rule applies to all accounts purchased on or after May 6th, 2024 (00:00 UTC).

Each case is evaluated individually.


👀 Want to check your setup?

If you're not sure whether your strategy crosses the line, or you want to verify past trades:

📥 Download our calculator

🔢 Fill in your trade data

✔️ Check if it meets the standard


We’re not here to block creativity—we’re here to block recklessness.

If your system is logical and repeatable, you’re good. If it’s based on hope, it won’t work here.

Fintokei backs real traders. And that means trading with intention—not desperation. 💼🚀

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