If you want the short answer, E8 Markets, FunderPro and several Instant Funding challenge programmes explicitly allow Martingale trading. FTMO gives traders broad freedom to choose a strategy, but its current risk rules can still catch aggressive position-size increases and repeated exposure to the same trade idea.
That distinction matters. A prop firm may allow Martingale but still limit how quickly you increase the lot size, how much total risk you carry or how an EA manages the sequence. A simple green tick does not tell you enough.
We checked the prop firms published rules on 7 September 2026. Policies change, so open the linked rule page and confirm the position with support before buying an account.
Risk warning: Martingale increases position size after a loss. Exposure grows quickly during a losing run, and a trader can breach a daily or maximum loss limit before the recovery trade arrives. Prop firm fees are not trading deposits, and passing or receiving a payout is never guaranteed. This page is educational and is not financial advice.
Prop firms that allow Martingale in 2026
| Prop firm | Current position | Important conditions | Verification |
|---|---|---|---|
| E8 Markets | Explicitly allowed | The strategy must remain executable under real market conditions. Prohibited methods and account rules still apply. Third-party EAs can create account-duplication problems if several traders use the same setup. | Confirmed on the official E8 Markets help centre, checked 7 September 2026 |
| Instant Funding | Allowed, but programme-specific | Fully permitted on One-Phase, Two-Phase and IF Micro accounts, including the funded stage. Instant Funding accounts allow adding to losing positions but prohibit repeatedly doubling lot sizes after losses. | Confirmed on the official Instant Funding help centre, checked 7 September 2026 |
| FunderPro | Explicitly allowed | FunderPro permits Martingale but warns traders to control risk. Daily loss, maximum loss and any programme-specific rules still apply. | Confirmed on the official FunderPro help centre, checked 7 September 2026 |
| FTMO | Broad strategy freedom, with risk controls | FTMO does not name Martingale as a blanket ban on its current strategy page. Trading must be legitimate, replicable in real markets and consistent with its risk rules. Substantially larger positions or repeated increases in risk per trade idea may be reviewed. | Checked against FTMO’s strategy FAQ and forbidden-practices policy, 7 September 2026 |
My view as a prop firm trader
I would not choose a firm from the word “allowed” alone. I would want written answers to three questions: can I increase size after a losing trade, can I add to an existing losing position, and does the firm combine those positions as one trade idea? Those answers tell you far more than a tick in a comparison table.
E8 Markets
E8 Markets directly states that traders may use Martingale. Its help centre says it does not prohibit strategy types such as Martingale, provided the method can be executed under real market conditions.
That permission does not remove the rest of the rulebook. Feed abuse, prohibited high-frequency activity, straddling and other restricted practices remain banned. If you use a Martingale EA, E8 also warns that several traders running the same third-party strategy may lead to account termination. To reduce the risk of being flagged for a duplicated strategy, use your own EA or customise the settings of third-party software.
Verdict: E8 Markets gives one of the clearest published permissions, but your progression still has to remain inside the account’s loss and trading-policy limits.
Official rule: https://help.e8markets.com/en/articles/9796251-is-the-martingale-strategy-allowed
Instant Funding
Instant Funding has the clearest plan-by-plan explanation I found.
Martingale is fully permitted on its One-Phase, Two-Phase and IF Micro programmes, including the funded stage. Traders can add to losing positions and increase lot sizes, subject to the normal account rules.
The position changes on Instant Funding accounts. You may add to a losing trade, but you cannot continuously double the lot size after losses. That means averaging into a position and running a traditional doubling sequence are not treated in the same way.
Verdict: Suitable programmes are available, but check the exact account type. Do not assume the rules for a challenge also apply to an Instant Funding account.
Official rule: https://instantfunding.com/help/do-we-allow-martingale/
FunderPro
FunderPro‘s help centre says Martingale is allowed, although it warns traders to use it cautiously. The published answer is brief, so I would still ask support how the firm treats grouped positions, rapid lot increases and Martingale EAs on your chosen challenge.
Permission does not override the daily loss or maximum loss. If the next trade in the sequence would take the account beyond either limit, the strategy has already run out of room.
Verdict: Martingale is explicitly permitted, but obtain written clarification if your version adds to open losses or uses automated lot progression.
Official rule collection: https://support.funderpro.com/en/collections/878831-trading-questions
FTMO
FTMO‘s current FAQ gives traders freedom to use discretionary methods, algorithms and EAs, provided the trading is legitimate, follows proper risk management and can be replicated under real market conditions. It does not list Martingale as a blanket prohibition on that page.
However, FTMO’s forbidden-practices policy allows it to review behaviour that would not reflect reasonable real-market risk management. Examples include opening substantially larger positions than usual or repeatedly increasing the risk attached to one trade idea.
This makes FTMO a conditional inclusion. A controlled progression may fit its published framework, while an aggressive doubling sequence could conflict with the risk policy even if the word “Martingale” is not banned.
Verdict: Do not interpret broad strategy freedom as permission to double without limit. Send FTMO your exact progression model and keep its written response.
Official rules:
- https://ftmo.com/en/faq/which-instruments-can-i-trade-and-what-strategies-am-i-allowed-to-use/
- https://ftmo.com/en/forbidden-trading-practices/
What about the other firms commonly listed online?
Other comparison pages currently name firms such as FundedNext, FundingPips, The5ers, Alpha Capital Group, FXIFY, Blue Guardian, Crypto Fund Trader and Funded Trading Plus.
I have not given those firms an unconditional “allowed” rating here unless I could find a current, direct policy that supports the claim. Some firms permit EAs or broad strategy choice without specifically confirming Martingale. Others restrict grid trading, gambling behaviour, sudden changes in risk or the concentration of exposure across one idea.
This does not automatically mean Martingale is banned. It means the public rule is not clear enough to risk a challenge fee on an assumption. Ask the firm to confirm your exact method in writing.
Message to send to prop firm support
I use a position-sizing strategy that increases the lot size after a closed losing trade. I may also add positions in the same direction while an earlier position is in drawdown. Please confirm whether this is permitted during both the evaluation and funded stages. Do you classify it as Martingale, grid trading, gambling behaviour or grouped risk? Please also confirm whether there is a maximum lot increase, cumulative risk limit or restriction on using an EA for this strategy.
Save the answer with the date, account type and programme name. A generic reply stating that “most strategies are allowed” is not enough.
What is Martingale trading?
Martingale is a negative-progression position-sizing system. After a losing trade, the trader increases the size of the next position in an attempt to recover the previous losses when a winning trade eventually occurs.
The traditional version doubles after every loss. Traders also use modified versions that increase by a smaller multiplier, cap the number of recovery trades or add to an open losing position instead of waiting for it to close.
Those variations may look similar on a chart, but a prop firm may treat them differently:
- Classic Martingale: Double the next trade after each closed loss.
- Modified Martingale: Increase by a smaller fixed multiplier, such as 1.25 or 1.5.
- Averaging down: Add to an open losing position at new price levels.
- Grid-Martingale: Open a sequence of positions at set intervals and increase the size of later entries.
- Anti-Martingale: Increase size after winning trades rather than losses. This is a different strategy.
How quickly does Martingale risk grow?
Assume a trader starts with $10 risk and doubles after every loss:
Trade Risk on trade Total loss if trade loses
1 $10 $10
2 $20 $30
3 $40 $70
4 $80 $150
5 $160 $310
6 $320 $630
7 $640 $1,270
On a $1,000 account, seven consecutive losses would create a total loss of $1,270 before allowing for spreads, commissions or slippage. The account cannot fund the complete sequence.
The same problem applies to a prop challenge. A firm may permit the strategy but still enforce a 5% daily loss or 10% maximum loss. Permission to use Martingale does not provide extra drawdown.
Why prop firms restrict Martingale
Prop firms usually object to the risk pattern rather than the name of the strategy. Exposure can rise sharply after several losses, and multiple positions may place most of the account’s risk behind one market view.
A Martingale system may fall foul of:
Daily and maximum loss limits.
Maximum lot or margin limits.
Risk-per-trade-idea rules.
Rules covering gambling or inconsistent position sizing.
Grid-trading restrictions.
Requirements to use the same strategy during evaluation and funding.
EA rules, particularly when several traders use identical software.
Restrictions on adding to losing positions.
Passing an evaluation does not guarantee that the same trading pattern will survive a funded-account review. Keep the method, markets, normal lot progression and risk profile consistent across both stages.
Can Martingale work within prop firm drawdown rules?
It can fit mathematically if the starting risk, multiplier and maximum number of recovery trades are capped. That does not make it low risk or profitable.
For example, start with 0.1% risk and use a 1.5 multiplier:
Trade Risk Cumulative risk after a loss
1 0.10% 0.10%
2 0.15% 0.25%
3 0.23% 0.48%
4 0.34% 0.81%
5 0.51% 1.32%
This progression is less aggressive than doubling, but five losses still create more than thirteen times the risk of the first trade. Spread, commission, correlation and simultaneous positions can increase the real exposure.
If you are testing a modified Martingale system, define these limits before the first trade:
- Starting risk.
- Position-size multiplier.
- Maximum number of recovery trades.
- Maximum total risk across the sequence.
- Daily stop level below the firm’s limit.
- Markets that may become correlated.
- What ends the sequence, even if the loss has not been recovered.
Martingale versus averaging down and grid trading
These terms are often used as though they mean the same thing, but the distinction can affect an account review.
Martingale normally increases position size after a completed loss. Averaging down adds to an open losing position to improve the average entry price. Grid trading places multiple orders at set price intervals. A system can combine all three, especially when run through an EA.
Ask support about the actual order behaviour rather than relying on the label you use for it. A firm may say Martingale is allowed while separately banning grids or limiting cumulative risk across positions in the same direction.
Is Martingale a sensible strategy for a prop challenge?
I would not use a traditional uncapped Martingale sequence on a prop account. The strategy assumes you can continue increasing size, while a prop challenge gives you a fixed daily and maximum drawdown. Those two conditions work against each other.
A capped progression with small initial risk is different, but it still needs a tested market edge. Increasing size does not improve the quality of an entry. It only changes how quickly losses and recoveries affect the account.
Backtest the complete sequence, including commission and realistic slippage. Then forward-test it on a demo account using the exact drawdown calculation of the programme you plan to buy.
Final verdict
So, which prop firms allow Martingale? E8 Markets and FunderPro explicitly permit it, while Instant Funding allows it on One-Phase, Two-Phase and IF Micro accounts but restricts repeated doubling on Instant Funding accounts. FTMO provides broad strategy freedom, although its risk policy can restrict aggressive changes in position size or cumulative exposure.
Do not rely on an undated list. Check the rule for the exact programme, describe your trading sequence to support and retain the written answer. Even where Martingale is allowed, daily loss, maximum drawdown and risk-behaviour rules still apply.
Frequently asked questions
E8 Markets and FunderPro explicitly state that Martingale is allowed. Instant Funding permits it on One-Phase, Two-Phase and IF Micro accounts, including the funded stage, but prohibits continuously doubling lot sizes on Instant Funding accounts. FTMO allows broad strategy choice subject to real-market and risk-management rules.
FTMO does not list Martingale as a blanket ban in its current strategy FAQ. However, its risk policy can flag substantially larger position sizes or repeated increases in risk per trade idea. Ask FTMO to confirm your exact progression before using it.
Yes, but the rule depends on the programme. Instant Funding states that Martingale is fully permitted on One-Phase, Two-Phase and IF Micro accounts. On Instant Funding accounts, adding to losses is allowed but repeatedly doubling lot sizes is prohibited.
Only if the firm allows both the strategy and the EA. You must also follow rules covering third-party software, identical strategies, maximum allocation and account ownership. Customise the settings and obtain written confirmation from the firm.
No. Martingale normally increases size after a losing trade has closed. Averaging down adds to a position while it remains open. Some automated systems combine both methods, and prop firms may group the resulting exposure as one trade idea.
Martingale is a position-sizing method, not an illegal trading activity. A broker or prop firm can still prohibit it under its contractual trading rules.
No. Recovery would require sufficient capital to continue the sequence, available margin, unrestricted position sizes and an eventual winning trade. Real accounts and prop challenges impose limits, while spreads and slippage increase the cost.
Fixed-percentage risk prevents position size from increasing after a loss. Anti-Martingale increases size after profitable trades, although it carries its own risks. Neither approach guarantees a profit.
About the Author
Ian Cabral is the co-founder and Chief Operating Officer of SecretsToTrading101.
With a background in computer engineering and over 10 years of experience in forex trading, Ian helps lead the technical and operational side of the business. His work focuses on trading tools, automated systems, platform processes and educational resources that help traders better understand market structure, trading conditions and risk.
Ian supports the development of practical trading resources designed to make complex trading concepts easier to understand. He also helps ensure that SecretsToTrading101’s tools and education remain clear, structured and aligned with real trading challenges.
