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Martingale Mode & Martingale-Only Strategy

This page explains how the Martingale mode works in our aggregator-based trading bot, including the newly introduced Martingale-Only strategy. Both modes let you average down on a position when the market price falls, but Martingale-Only disables other indicators so it can open its initial position purely by price thresholds, rather than RSI/ML signals.

1. Overview

What is Martingale?

  • Martingale is a strategy in which you buy additional tokens at lower prices to reduce your average cost basis.
  • Each time the market price drops a certain percentage below your current average price, you buy more tokens (often at a larger size than the previous buy).
  • The goal is to accelerate your position’s breakeven point so you can exit at a profit sooner — assuming the price eventually recovers.

Martingale vs. Other Indicators

  • The bot processes each symbol independently in a loop.
  • If martingale_mode is enabled for a particular symbol, the bot checks if the current price is below a step percent threshold from your average entry. If yes, it rebuy for that position.
  • If you have an indicator (like RSI or ML) enabled and martingale_mode is true, the bot can open initial entries via the indicator, but subsequent rebuys can also come from the martingale logic.
  • Martingale-Only means the bot does not rely on RSI, ML, or any other indicator to open the first position. Instead, it automatically enters an initial buy (like a time-based or standard minimum buy) and then continues rebuys purely on the martingale criteria.

2. Configuration Fields

Below are the relevant fields in the user config (SymbolConfig) that control martingale behavior:

  • martingale_mode: A boolean; if true, the symbol can perform additional rebuys when the price falls below a given threshold from the average cost basis.
  • martingale_only: A boolean; if true, that symbol runs purely on Martingale logic for all entries (initial + rebuys), ignoring RSI, ML, STOCH, etc.
  • Internally, if you select "MARTINGALE_ONLY" from the indicator dropdown, the code sets martingale_only=true and also flips martingale_mode=true.
  • martingale_step_percent (stepPct): The percentage drop from your average price at which the bot triggers an additional buy.
  • Example: If set to 5, the bot attempts to rebuy each time the live price is at least 5% below your cost basis.
  • martingale_scale_factor (scaleFactor): Each new buy can be multiplied by this factor to accelerate your position size.
  • Example: If your normal buy is 1 token, and scale_factor=2, each subsequent buy is doubled (1, 2, 4, 8, …).
  • martingale_max_buys (maxBuys): The maximum number of times the bot will keep adding onto a losing position.
  • martingale_max_base_amount (maxBaseFloat): The maximum total base token usage for this position’s martingale. This ensures you don’t exceed a specified capital limit.

3. How It Works Step-by-Step

When the bot sees martingale_mode = true for a given symbol:

  1. Initial Position
  2. If martingale_only is NOT enabled, the first buy typically comes from time-based or from an indicator signal (like RSI, ML, etc.).

  3. If martingale_only is enabled, the bot automatically opens an initial buy on that symbol (like a minimal trade size) without needing an RSI/ML signal.

  4. Check Price

  5. In each loop, the bot compares the aggregator’s live price for your symbol with your current average buy price (the “cost basis”).
  6. It calculates a threshold: costBasis * (1 - (martingale_step_percent / 100)).

  7. If the live price is below or equal to that threshold, the bot tries a rebuy.

  8. Scaling

  9. The new buy size can be scaled up by martingale_scale_factor. For example, if your normal buy is 1 SUI in the first buy, the second might be 2 SUI, the third 4 SUI, etc.

  10. This scale factor is multiplied after each rebuy, up to your chosen limit.

  11. Max Buys & Max Base

  12. If your martingale_max_buys is 5, you cannot do more than 5 rebuys on this position.

  13. martingale_max_base_amount ensures you never exceed a certain total base usage. If you hit that cap, no further rebuys happen.

  14. Profit Target

  15. Once you have a position, the bot uses your configured profit margin (e.g. profit_margin_percent=5) to set an exit price. When the aggregator feed price for that symbol is above that goal price, the bot attempts to sell.

4. Example Usage

Below is a sample snippet of a symbol config in your JSON or user interface:

{
  "symbol": "SUI",
  "targetSymbol": "PUMPKIN",
  "min_buy_amount": "1",
  "max_buy_amount": "2",
  "profit_margin_percent": "10",
  "buy_interval_minutes": "15",
  "time_enabled": false,
  "rsi_enabled": false,
  "ml_enabled": false,
  "stoch_enabled": false,
  "mfi_rsi_enabled": false,
  "indicator": "MARTINGALE_ONLY",
  "martingale_only": true,
  "martingale_mode": true,
  "martingale_step_percent": "5",
  "martingale_scale_factor": "2",
  "martingale_max_buys": "5",
  "martingale_max_base_amount": "10"
}