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An Example of Futures Martingale Strategy
Published on: 2024/11/20 09:59Last Update: 2025/09/26 10:02

Using the BTCUSDT futures trading pair as an example:

1. Trigger Conditions:

First Order Trigger: Immediate

Price Change Trigger: 5.00%

Target Profit for Single Order: 10.00%

Leverage Ratio: 5X

 

2. Investment Amount:

Initial Order Amount: 100 USDT

Maximum Follow Up Orders: 4

 

3. Advanced Parameters:

Price Difference Increase: 50%

Order Size Increase: 100%

Available Margin: 700 USDT

 

4. Strategy in Operation

T0 - Initial Order: If the BTCUSDT futures price is 20,000 USDT when the strategy is created, and the strategy trigger is set to "Immediate," the system will place a market order with a size of 100 USDT the moment your strategy is deployed.

Position Size: 100 / 20,000 = 0.005 BTC

Average Price = 20,000 USDT

Take Profit Price for this Order = 20,000 * (1 + 10.00%) = 22,000 USDT

Follow-up Order #1: Trigger Price is 20,000 * (1 - 5%) = 19,000 USDT, Order Amount is 200 USDT

Follow-up Order #2: Trigger Price is 20,000 * (1 - 5% - 5% * (1+50%)) = 17,500 USDT, Order size is 200 * (1+100%) = 400 USDT

Follow-up Order #3: Trigger Price is 20,000 * (1 - 5% - 5% * (1+50%) - 5% * (1+50%) ^2) = 15,250 USDT, Order size is 200 * (1+100%) ^2 = 800 USDT

Follow-up #4: Trigger Price is 20,000 * (1 - 5% - 5% * (1+50%) - 5% * (1+50%) ^2 - 5% * (1+50%) ^3) = 11,875 USDT, Order size is 200 * (1+100%) ^3 = 1,600 USDT

Extreme fluctuations: If the BTCUSDT futures price drops to 15,000 USDT in a very short time and your follow-up orders #1, #2, and #3 have all been fully executed, but #4 has not been executed.

Position Size: 100 / 20,000 + 200 / 19,000 + 400 / 17,500 + 800 / 15,250 = 0.0908 BTC

Average Position Cost = (100 + 200 + 400 + 800) / 0.0908 = 16,512.10 USDT

Take Profit Price for this strategy = 16,512.10 * (1 + 10.00%) = 18,163.31 USDT

Price Rebounds: The BTCUSDT price reaches the take profit price of 18,163.31 USDT. Your position created by this strategy will be closed.

 

Disclaimer

Futures Martingale trading is a trading tool and should not be considered as financial or investment advice provided by CoinW. The profits from Futures Martingale trading may be affected by a one-sided market or less-than-ideal price interval settings. You should set your Futures Martingale trading strategy based on market conditions.

 

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An Example of Futures Martingale Strategy
Published on: 2024/11/20 09:59Last Update: 2025/09/26 10:02

Using the BTCUSDT futures trading pair as an example:

1. Trigger Conditions:

First Order Trigger: Immediate

Price Change Trigger: 5.00%

Target Profit for Single Order: 10.00%

Leverage Ratio: 5X

 

2. Investment Amount:

Initial Order Amount: 100 USDT

Maximum Follow Up Orders: 4

 

3. Advanced Parameters:

Price Difference Increase: 50%

Order Size Increase: 100%

Available Margin: 700 USDT

 

4. Strategy in Operation

T0 - Initial Order: If the BTCUSDT futures price is 20,000 USDT when the strategy is created, and the strategy trigger is set to "Immediate," the system will place a market order with a size of 100 USDT the moment your strategy is deployed.

Position Size: 100 / 20,000 = 0.005 BTC

Average Price = 20,000 USDT

Take Profit Price for this Order = 20,000 * (1 + 10.00%) = 22,000 USDT

Follow-up Order #1: Trigger Price is 20,000 * (1 - 5%) = 19,000 USDT, Order Amount is 200 USDT

Follow-up Order #2: Trigger Price is 20,000 * (1 - 5% - 5% * (1+50%)) = 17,500 USDT, Order size is 200 * (1+100%) = 400 USDT

Follow-up Order #3: Trigger Price is 20,000 * (1 - 5% - 5% * (1+50%) - 5% * (1+50%) ^2) = 15,250 USDT, Order size is 200 * (1+100%) ^2 = 800 USDT

Follow-up #4: Trigger Price is 20,000 * (1 - 5% - 5% * (1+50%) - 5% * (1+50%) ^2 - 5% * (1+50%) ^3) = 11,875 USDT, Order size is 200 * (1+100%) ^3 = 1,600 USDT

Extreme fluctuations: If the BTCUSDT futures price drops to 15,000 USDT in a very short time and your follow-up orders #1, #2, and #3 have all been fully executed, but #4 has not been executed.

Position Size: 100 / 20,000 + 200 / 19,000 + 400 / 17,500 + 800 / 15,250 = 0.0908 BTC

Average Position Cost = (100 + 200 + 400 + 800) / 0.0908 = 16,512.10 USDT

Take Profit Price for this strategy = 16,512.10 * (1 + 10.00%) = 18,163.31 USDT

Price Rebounds: The BTCUSDT price reaches the take profit price of 18,163.31 USDT. Your position created by this strategy will be closed.

 

Disclaimer

Futures Martingale trading is a trading tool and should not be considered as financial or investment advice provided by CoinW. The profits from Futures Martingale trading may be affected by a one-sided market or less-than-ideal price interval settings. You should set your Futures Martingale trading strategy based on market conditions.

 

Was this article helpful?
0 out of 0 found this helpful
Limited-Time New User Offer!
Sign up now to claim your exclusive 12000 USDT gift pack!
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Popular Articles