Some EAs show months of near-perfect results: almost every trade wins and the curve climbs in a straight line. Very often, a martingale or grid is behind it.
How they work
Martingale increases the size after a loss, so that one win recovers everything before it.
Grid adds trades at set distances as the price moves against the position, then closes the whole group on a small move back.
Both turn many small wins into a very high win rate, because they refuse to accept a loss. The losing position just gets bigger.
Why they fail suddenly
Most of the time the price comes back and the system books a small profit. But when a market keeps moving in one direction, position size keeps growing and margin runs out. One bad trend can remove months or years of gains, or the whole account, in a single move.
That's why these systems show small gains for a long time and then a very large loss. Their history can look excellent right up to that point.
How to spot one
- A very high win rate with hardly any visible losses
- An average loss far larger than the average win
- Lot sizes that grow after losing trades
- Several open trades in the same direction, at different prices
- Balance rising smoothly while equity dips sharply
- No stop loss on individual trades
Many prop firms also restrict these methods, so check the rules first.
Our approach
LogicFlux strategies don't use martingale or grid. Each trade opens with its stop loss set, and results are published in R, so losing trades stay in plain view. That doesn't make them safe, since every strategy loses at times, but the risk on each trade is known before it opens.
See how our strategies report their results.