Tutorial Basic money management for martingale or grid averaging

[Towfick Kamal]

Money Management Rules

If Equity >= 1000 then Max Lot Size = 0.10 lots --> recommended [0.01 to 0.05]

1K Equity (Max Lot Size = 0.10)
Trade 1 @ 0.01
Trade 2 @ 0.02
Trade 3 @ 0.03
Trade 4 @ 0.04
Trade 5 @ 0.05
Tot. Volume = (0.01 + 0.02 + 0.03 + 0.04 + 0.05) = 0.15 (1.5* Max Lot Size).

If Equity >= 2000 then Max Lot Size = 0.20 lots --> recommended [0.02 to 0.10]

2K Equity (Max Lot Size = 0.20)
Trade 1 @ 0.02
Trade 2 @ 0.04
Trade 3 @ 0.06
Trade 4 @ 0.08
Trade 5 @ 0.10
Tot. Volume = (0.02 + 0.04 + 0.06 + 0.08 + 0.10) = 0.30 (1.5* Max Lot Size).

If Equity >= 3000 then Max Lot Size = 0.30 lots --> recommended [0.03 to 0.15]

3K Equity (Max Lot Size = 0.30)
Trade 1 @ 0.03
Trade 2 @ 0.06
Trade 3 @ 0.09
Trade 4 @ 0.12
Trade 5 @ 0.15
Tot. Volume = (0.03 + 0.06 + 0.09 + 0.12 + 0.15) = 0.45 (1.5* Max Lot Size).

If Equity >= 4000 then Max Lot Size = 0.40 lots --> recommended [0.04 to 0.20]

4K Equity (Max Lot Size = 0.40)
Trade 1 @ 0.04
Trade 2 @ 0.08
Trade 3 @ 0.12
Trade 4 @ 0.16
Trade 5 @ 0.20
Tot. Volume = (0.04 + 0.08 + 0.12 + 0.16 + 0.20) = 0.60 (1.5* Max Lot Size).

If Equity >= 5000 then Max Lot Size = 0.50 lots --> recommended [0.05 to 0.25]

5K Equity (Max Lot Size = 0.50)
Trade 1 @ 0.05
Trade 2 @ 0.10
Trade 3 @ 0.15
Trade 4 @ 0.20
Trade 5 @ 0.25
Tot. Volume = (0.05 + 0.10 + 0.15 + 0.20 + 0.25) = 0.75 (1.5* Max Lot Size).

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If Equity >= 10000 then Max Lot Size = 1.0 lots --> recommended [0.10 to 0.50]

10K Equity (Max Lot Size = 1.0)
Trade 1 @ 0.10
Trade 2 @ 0.20
Trade 3 @ 0.30
Trade 4 @ 0.40
Trade 5 @ 0.50
Tot. Volume = (0.10 + 0.20 + 0.30 + 0.40 + 0.50) = 0.75 (1.5* Max Lot Size).

 

[Towfick Kamal]

For safe martingale without blowing up your account

I recommend

BF GRID MASTER EA

https://www.mql5.com/en/market/product/27411#

 

[Towfick Kamal]

if u want to go with paid EA

then this ea is good
WOLF GRID EA
https://www.mql5.com/en/market/product/24726

 

[Frank Milk]

never risk more then 2% of your account and you never blow it out

 

[Frank Milk]

money management is the key to succeed

 

[Frank Milk]

always put your stoploss at the nearest high for sell and nearest low for buy and you are fine

 

[fatherdougc]

great post on this topic, will apply it in my trading, thank you mam

 

[fatherdougc]

the web site dosent work anymore, you have other link

 

[Fin_Trader]

Martingale is evil. Do not trade using this method if you do not want to lose your money quickly. It is better to use a hard stop loss in your orders than to trade without it and constantly average against the trend in the hope that the trend will soon reverse. Yes, the trend does reverse, but this happens very often when your deposit has already been drained thanks to martingale)).

 

[pippin]

Martingale is evil. Do not trade using this method if you do not want to lose your money quickly. It is better to use a hard stop loss in your orders than to trade without it and constantly average against the trend in the hope that the trend will soon reverse. Yes, the trend does reverse, but this happens very often when your deposit has already been drained thanks to martingale)).

Martingale is a high-risk strategy that can wipe out accounts quickly, especially in volatile markets. Using a hard stop loss and sticking to disciplined risk management is far safer and more sustainable. Always trade with a plan, not hope.

 

[ah10a22]

Both have their pros and cons, it's always depends on how much you are willing to risk and if you have sl with martingale it will be much better

 

[Fin_Trader]

Martingale is a high-risk strategy that can wipe out accounts quickly, especially in volatile markets. Using a hard stop loss and sticking to disciplined risk management is far safer and more sustainable. Always trade with a plan, not hope.

Martingale is good when the market is in a narrow horizontal flat (range) and the price moves within it. Then you can earn money trading this way. But it can be difficult to determine when such a flat will end and the price will continue to move in the direction of the trend, taking your deposit into a big minus.