The Martingale strategy in bots is the principle saying that each subsequent order in the grid increases by a certain percentage. As a result, the average position price follows the price (that is, it also increases or decreases), and after the price reversal, the distance to the average price level (and therefore to the profit point) turns out to be closer than to the point where the deal was opened.
In this example, the bot works with a 50% Martingale setting, and with each order, the position price (green dotted line) is effectively averaged.
The grid of orders executed in this bot is shown below. The green arrows are buy orders, the red arrow is a sell order summing up the entire accumulated volume of the coin.
Note.
The Martingale percentage is applied not to the order volume in the coin, but to the nominal value of the orders (the amount of the coin multiplied by its price). Therefore, with the Short algorithm and a small Martingale, you can find that the order volume in the coin in the grid is decreasing, although the nominal value of the orders is growing.
Get to know the work of the Martingale strategy in our video:
