BingX is thrilled to launch the Futures Martingale strategy to cater to users' advanced trading needs. The strategy supports both long and short positions with up to 25x leverage. Capitalize from market reversals using this classic strategy that can run 24/7 with just a simple parameter setup.

Web: Access portal

App: On the homepage, go to "Grid Trading" -> "Martingale (DCA)".
*Ensure your app is updated to version 4.31.5 or above.

How to get started with the Futures Martingale? We've broken it down into 5 simple sections:

I. What Is Martingale Strategy (DCA)?
II. What Makes BingX’s Martingale Strategy Unique?
III. How to Create My Martingale Strategy?
IV. Calculation Process of the Martingale Strategy
V. FAQs

I. What Is Martingale Strategy (DCA)?

1. The Martingale Strategy Explained

The Martingale strategy, originally developed in 18th-century French casinos, has stood the test of time and is now popular in markets like forex and stocks. Its concept is straightforward: in a gamble, a player continues to bet on the same outcome (e.g., big/small). If they lose, they double their bet in the next round. A single win is enough to recover all previous losses and earn a profit.

For example, you bet $1 on a coin-toss game with a 1:1 payout ratio.

If you win, the game ends.

If you lose, you bet $2 in the second round.

If you win the second round, the game ends.

If you lose the second round, you bet $4 in the third round, and so on.

The game ends when you win.

If you lose, double your bet in the next round until you win.

At the end of the game, your winnings will always exceed your losses by $1.

The Martingale Strategy is fundamentally a method of fund management. Theoretically, you can achieve steady wins as long as you have sufficient funds, which is why it's called the "no-loss strategy."

2. Pros and Cons of the Martingale Strategy

2.1 Pros

- Profit Potential in Range-Bound Markets

Even if you start on the wrong side, the market rebounds eventually. The Martingale strategy enables you to gradually add positions and reduce the position cost. A small market rebound can turn your losses into gains, letting you exit with a profit.

- Easy to Use

The strategy is simple to understand and calculate. With proper fund management, there's no need to worry about complex market dynamics or factors.

2.2 Cons

- Low Risk-Reward Ratio in Trending Markets

For example, in a strong bearish trend, investors who go long and continuously add positions may eventually face significant losses.

- Infinite Funds Needed to Ensure Security

When the market moves against the investor, the strategy demands continuous position adding according to the plan until a reversal occurs to secure a profit.

II. What Makes BingX’s Martingale Strategy Unique?

1. Futures Leverage

Both long and short positions are supported, letting you amplify your profits by using smaller funds to control larger funds.

2. Calculation Feature

After entering your parameters, the system immediately calculates and provides an accurate representation of the profit scenarios based on actual market conditions.

3. Strategy Progress Chart

Track your strategy's progress visually and intuitively. See everything from order status, details of opened positions, updates on closed positions, and real-time market fluctuations. It ensures you have comprehensive and precise monitoring of your strategy's progress.

III. How to Create My Martingale Strategy?

App: On the homepage, go to "Grid Trading" -> "Martingale (DCA)".
*Ensure your app is updated to version 4.31.5 or above.
Web: On the homepage, go to "Wealth" -> "Martingale (DCA)". Alternatively, you can visit: https://bingx.com/strategy/

4 Steps to Create Your Futures Martingale Strategy:

Step 1. Select a futures trading pair, set your leverage and choose a trading direction.
Step 2. Enter your profit target and total investment.
Step 3. Enter your parameters for Entry Price, Price Step, Amount Multiplier, and Max. Additions per Round.
Step 4. Review the calculated results and launch the strategy.

IV. Calculation Process of the Martingale Strategy

Investment Process Calculation:
For BTC/USDT futures, set a total investment amount of 10,000 USDT with 10% profit target.
Position Opening and Adding Requirements: Open the position at 67,314.11 USDT. For every 1% price step, add to the position by increasing the investment by 1.1 times the previous amount. A maximum of 3 additions is allowed.

Here are the potential profit scenarios for the investment.
Scenario 1: After opening the position, the price increases by 10%. You close the position and lock in profits.
Scenario 2: After opening the position, the price decreases by 1%. After 1 round of additions, the price rebounds to achieve your 10% profit target. You close the position and lock in profits.
Scenario 3: After opening the position, the price decreases by 1%, then decreases another 1%. After 2 rounds of additions, the price rebounds to achieve your 10% profit target. You close the position and lock in profits.
Scenario 4: After opening the position, the price decreases by 1%, then decreases another 1%, followed by another decrease of 1%. After 3 rounds of additions, the price rebounds to achieve your 10% profit target. You close the position and lock in profits.

The calculation results are as follows:
(To ensure the strategy runs smoothly, a portion of the 10,000 USDT will be reserved to offset potential unrealized losses.)

*The estimated profit is for reference only. The actual trading profit shall prevail.

V. FAQs

1. What is the maximum loss amount?

In a one-sided market, you may risk losing your "total investment (USDT)". Currently, the strategy doesn't support adding margin when it's running. A portion of your total investment is allocated as a buffer to absorb market fluctuations and keep the strategy running smoothly. However, if the risk becomes too high, we strongly recommend that you carefully evaluate and decide whether to terminate the strategy to reduce potential losses.
Additionally, it is advisable to set up a stop-loss prior before launching the strategy to effectively manage potential risks and safeguard your investment and profit.

2. Why was my position liquidated even though I set a stop-loss?

Currently, only stop-losses based on prices are supported. During periods of high market volatility, once a stop-loss is triggered, the market may move rapidly. For example, the price may drop sharply to the liquidation price immediately after reaching the stop-loss price. In such scenarios, the stop-loss order may fail, leading to your position being liquidated.
Therefore, it's recommended that users avoid launching strategies during periods of extreme market volatility. For tokens with low liquidity, be especially cautious when configuring strategy parameters and account for potential risks. This ensures a smoother and safer strategy execution while protecting your returns.

3. Why is my actual profit negative even though I set a positive profit target?

Funding fees are subject to dynamic changes. If your profit target is set too low, the deduction of funding fees can result in a negative profit during the trading process. Therefore, it’s crucial to set a reasonable profit target. Keep in mind that setting a profit target that is too high can slow down the strategy’s progress.
We recommend reviewing the order details in the strategy’s calculation process and analyze the market condition of token pair thoroughly. This will help you determine an appropriate profit target that ensures stable and reasonable trading efficiency and profits.

4. How can I view the parameter details for my Martingale strategy?

https://bingx.com/support/articles/11359359478799/