Martingale & Grid Stress Tester
See exactly how many losing levels a martingale or grid gold system survives: lots, average entry, floating loss, margin used and the gold price where your account is stopped out.
| Level | Entry price | Lot | Total lots | Average entry | Floating loss at this entry | Margin used | Margin level |
|---|
Typical daily range used for comparison: the 20-day average daily high-low range of COMEX gold futures (GC=F, via Yahoo Finance) is about $81; the 60-day average is about $92. It updates with the site data.
Safer ways to handle losing trades
- Size every trade so one stop-out costs a fixed 0.5–1% of the account: position size calculator.
- See how often losing streaks happen at your win rate: risk of ruin calculator and expectancy calculator.
- Read how these systems fail on gold: martingale risks and grid and hedging risks.
What this stress tester shows
A martingale doubles the lot after every loss. A grid adds the same lot every few dollars. Both feel safe because most days the price comes back and the basket closes in profit. The danger is the one day it does not. This tool adds entry after entry as gold moves against you and shows, level by level, the lots you hold, your average entry, the floating loss and the margin you use. It then finds the gold price at which your broker's stop-out closes everything.
Worked example
A $5,000 account buys 0.01 lot, doubles the lot each time gold falls $10, and allows 8 entries (0.01, 0.02, 0.04 ... 1.28 lot). At 1:100 leverage and a 50% stop-out, the 7th entry leaves 1.27 lots open and the account is stopped out roughly $70 below the first entry, before the 8th entry (1.28 lot) can even fill. Gold's average daily high-low range has recently been about that size, so an ordinary day can be enough. Enter the same numbers above to see the exact stop-out price at today's gold price.
How the maths works
- Lot at level n = starting lot × multipliern−1, rounded to 0.01.
- Floating loss = sum over entries of (entry price − current price) × lots × 100 (for a buy).
- Margin used = current price × total lots × 100 ÷ leverage.
- Margin level = equity ÷ margin used × 100%. The broker closes positions when it falls to the stop-out level you enter.
Spread, swap and slippage are left out, so real accounts fail a little sooner than shown. Brokers set their own stop-out levels and margin rules; check yours.
Frequently asked questions
Why does martingale blow accounts on gold?
Each loss doubles the next lot, so the position grows very fast. A run of losses, or one long move without a pullback, makes the total lot so large that a normal daily move in gold wipes the account out.
Is a grid safer than a martingale?
It grows more slowly because the lot does not double, but the open position still gets bigger at every level and the loss per dollar grows. Without a stop, a long trend still ends with a stop-out.
How many losing levels can my account survive?
Enter your account size, starting lot, multiplier and grid step above. The tool shows the level and the gold price at which the stop-out is reached.
Does this include spread and swap?
No. It is pure price and margin arithmetic, so the real result is slightly worse: spread, swap and slippage add to the loss.
What is a stop-out level?
The margin level at which the broker starts closing your trades automatically. It is set by the broker, often between 20% and 50%. Read margin call and stop-out.
Educational tool only. Not financial advice and not a signal. Check your own broker's contract specification, margin rules and costs. Past data does not predict future prices. See our risk disclaimer.