We categorically prohibit the use of Martingale strategies—an approach that involves progressively and cumulatively increasing position size following a loss in an attempt to recover all prior losses with a single eventual profitable trade. We regard this method as inherently prone to structural risk of collapse, and our operational policy strictly forbids its application.

This decision is based on the understanding that, while such strategies may appear to offer high short‑term win rates and efficient recovery of losses, they inherently involve exponentially‑increasing cumulative risk exposure through repeated position enlargement. This structure carries a persistent risk of uncontrollable drawdowns, making it fundamentally incompatible with the continuous risk control required by a prop firm.

Specifically, during evaluation periods, if we observe behaviour characterized by increasing position size without a consistent risk‑management process and solely for the purpose of avoiding losses, we will classify such actions as having a Martingale‑like structure regardless of the market context or trading logic, and such instances will be deemed policy violations under our internal evaluation standards.

Furthermore, in distinguishing Martingale tactics from deliberate “averaging‑down,” we assess whether additional positions arise from genuine price advantage or structured zone‑building, or whether they are merely non‑strategic additions made because earlier positions are in drawdown. We thoroughly and sequentially review all relevant factors, including overall lot composition at entry, unrealised gains and losses, the presence or absence of stop‑loss orders, exit methods, and the complete history of position building.

Therefore, regardless of each entry’s lot size, if the aggregate simultaneously held positions swell to roughly double the trader’s typical exposure, we regard such growth as unnatural position inflation and excessive exposure. Even when each trade appears individually justifiable, the overall structure may still be deemed Martingale in nature and thus remains fully subject to our policy restrictions.

At SuperFunded, our policies are designed from the standpoint of assessing whether a participant is worthy of being a prop trader. Your stance toward the market, your perception of risk, and your methods of constructing positions are all subject to comprehensive evaluation.