Myth: Martingale Works If You're Careful

Doubling position size after each loss guarantees eventual catastrophic loss. Even a modest 4-loss streak at martingale sizing turns a 1% risk into 15% total drawdown. On a 10% max DD account, 4 losses = challenge failed. The probability of 4 consecutive losses at 45% loss rate is 4.1% — it WILL happen. Martingale is incompatible with prop firm trading. Period.

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