Martingale System

The Martingale system is a strategy that doubles position size after every loss, assuming the first win will recover all prior losses plus a small profit. Exposure grows exponentially (2, 4, 8, 16…), so even a short losing streak demands enormous capital — with a real account and the EU ESMA 1:30 leverage cap, a handful of consecutive losses blows the account. In practice it always destroys the deposit and is rejected by sound risk management.