A Martingale Recovery Cycle: Step-by-Step Walkthrough

Martingale Decoded · 9 min read

Understanding a martingale recovery cycle conceptually is one thing. Seeing exactly how each order opens, how the floating loss evolves, and how the cycle finally closes is more useful. This walkthrough follows a real-scenario four-order cycle on EURUSD H1 from entry to close.


The Setup

Account: $2,000. Base lot: 0.01. Step distance between orders: 25 pips. Take-profit for the full cycle: 15 pips above the weighted average entry price of all open orders.

Event Price Lots Added Floating P/L Avg Entry
Order 1 opens1.09000.01 buy$01.0900
Price drops 25 pips1.0875-$2.501.0900
Order 2 opens1.08750.01 buy-$2.501.0888
Price drops 25 more pips1.0850-$7.601.0888
Order 3 opens1.08500.02 buy-$7.601.0869
Price drops 25 more pips1.0825-$18.501.0869
Order 4 opens1.08250.04 buy-$18.501.0856
Market reverses, rises1.0856+Improving1.0856
ALL ORDERS CLOSE1.0871All 0.08 lots+$1.20Closed

Key Observations from This Cycle

  • The cycle dropped 75 pips before reversing — triggering 4 orders at 25-pip intervals
  • Maximum floating loss was $18.50 — on a $2,000 account this is less than 1% drawdown
  • The exit target was 15 pips above the average entry — the average entry was 1.0856 so price only needed to reach 1.0871 for full close
  • Profit was small ($1.20) — this is normal for martingale; the system makes many small wins to compensate for occasional larger losses when cycles fail

What If Price Didn’t Reverse?

If price had continued dropping beyond 1.0825, Order 5 would have opened at 1.0800 (0.08 lots), Order 6 at 1.0775 (0.12 lots), and so on up to Order 8. The cumulative floating loss at that depth would be several hundred dollars on this account — but still below the -65% kill switch threshold of $1,300 at a $2,000 balance. That is why conservative sizing is essential.

Try It on a Demo Account First

All BotFXPro EAs include a free MQL5 demo. Run it in Strategy Tester before committing to live.

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