The safe martingale trading strategy sounds counterintuitive because martingale is called a high-risk folding strategy. However, today, let's try and see, how to trade this strategy safely.

The idea of this trade is as follows: assuming the price goes up, for example, we would sell with 0.1 lots. As shown below:
The price is following the trend and keeps moving up, but we will not close the previous order but open another sell order with a volume of 0.2 lots. As shown below:
Then wait for the price to drop. If the price does not decrease but keeps going up, then we open another sell order with twice the volume of the previous order of 0.4 lots and so on.

When the price turns, we can close all orders when it comes to break even or make a profit. As shown below:
Many people believe that this strategy helps traders avoid losses, but in fact, it leads to higher losses if the trend persists. That is why martingale is considered very risky.

There is a very important factor in determining success or failure if you use this approach, which is that you need to have a profitable and nonmartingale trading strategy before. Otherwise, the trading way we discussed today wouldn't work.

Important factors in martingale trading:
  • Use stop loss
  • Check the number of consecutive losing trades in history
Trading method

For example, the market is rising, you sell 0.1 lot, stop loss 10 pips, take profit 20 pips. As the market continues to go up you will have a stop loss of 10 pips. And now the market has a signal to sell. Normally you would need to double the volume, but to reduce the risk we should only increase the volume by 50%. As shown below:
If this position continues to lose you will lose 10 more pips. When there is the signal you will sell again with the volume of 0.2 lots, and if the price is right, you can take profit by 20 pips.
If you use this method, your total profit is: -10 $ -15 $ + 40 $ = + 15 $.

If in the past, your average consecutive loss trade was 3, you should use this method up to the 3rd time, and the 4th should not. You should gradually reduce the mass or keep the standard mass.

But note that we need to have a profitable trading strategy first, then use the signals of the method in combination with the way to increase profits.