Martingale is one form of DCA. Martingale is a trading strategy based on the concept of doubling the trading size after every loss. With a doubled position size each time after losses, the size of the next profitable trade will exceed the combined losses of all previous trades with additional profit. In simple terms, if you lose a trade, you double your next trade to recover your losses and hope to make a profit.
The Martingale strategy may potentially earn long-term growth by taking the fluctuating profit from cycles of rebound (if trading in a long direction), or correction (with short direction), with the aim to minimize losses on the overall purchase.
Checklist
- How does our Spot DCA (Martingale) bot work?
- How do I set it up?
- On the web
- Navigate to Trade, select Trading bots
- Select Trading bots from the menu once you selected Trade
- Select Spot DCA (Martingale) from the Bearish category
- Select Spot DCA as your trading bot style
- Set your bot with your preferred parameters
- Set myself: set parameters based on your own analysis of the market.
- Set myself — auto fill: automatically fill in parameters recommended by the trading bot, based on backtested strategy.
- Lead bots: copy lead traders' winning bots on the Marketplace in one-click.
Notes
Users begin the trading cycle by selecting their risk profile via a series of parameters (or choosing from conservative, moderate, and aggressive pre-set parameters under the AI-strategy option).
This strategy starts by placing an initial trade and will continue placing more trades if the asset price drops by a set percentage. Each new trade is larger than the last. The process stops once a target profit is reached, the maximum number of trades is hit, or the user’s stop loss limit is triggered.
Traders use this strategy when they believe prices will rise eventually, buying more when prices drop to average out the cost. It’s commonly used in volatile or sideways markets to take advantage of short-term price swings.
Enter parameters manually, copy lead traders' bots, or use backtested AI parameters, and confirm the total investment amount to create a Spot DCA (Martingale) bot
Details follow the official OKX help article; this page is a learning checklist, not an official mirror.
