How the Spot Martingale Strategy Works on BYDFi (APP)

The Spot Martingale Strategy is an automated trading tool designed to help users take advantage of market fluctuations by placing a series of buy and sell orders based on predefined rules. This guide explains how the strategy works, how to set it up, and includes a real example for clarity.

🔁 What Is the Spot Martingale Strategy?

The Spot Martingale Strategy works by averaging down your buying price as the market drops and aiming for profits when the price rebounds. Once the take-profit level is reached, all assets are sold, and the next cycle begins automatically.

🚀 How to Start the Spot Martingale Strategy

1. Access the Strategy

Go to the Strategy Trading homepage on the BYDFi app.

Tap on Spot Martingale to enter the trading page.

2. Learn the Basics

Tap the 【...】 icon in the upper-right corner to check Beginner’s Operating Guide

3. Choose a Trading Pair

In the top-left corner, select the coin pair you wish to trade (e.g., BTC/USDT).

4. Configure Strategy Parameters

Fill in the following fields to define how your Spot Martingale strategy will operate:

🔹 Trigger Conditions

• Price Scale (%): The percentage drop in price that triggers each safety (add-margin) order.
• Take-Profit Ratio (%): The profit percentage at which the strategy will automatically sell and complete the cycle.

🔹 Investment Settings

• Initial Order Amount: The amount in USDT for your first buy order (range: 12–20,000 USDT).
• Safety Order Amount: The amount used for each safety (add-margin) order (≥ 12 USDT).
• Max Safety Orders: The maximum number of safety orders allowed in the strategy (e.g., 8).

🔹 Current Balance

• Displays your available USDT balance for strategy use.

🔹 Advanced (Optional)

• Trigger Price: Set a specific price at which the strategy will be activated.
• Price Scale Multiplier: Increase the spacing between safety orders (e.g., 1x = fixed spacing, 1.5x = wider spacing as price drops).
• Safety Amount Multiplier: Increase the size of each subsequent safety order (e.g., 2x = each new order doubles in size).
• Stop Loss Ratio (0.05–99.99%): Automatically terminates the strategy when the position loss exceeds this threshold. You can also choose whether to sell the base asset at market price when triggered.

Once your parameters are set, tap Create to launch the strategy.

After creation:

• The system freezes your investment.
• A market order is executed for your initial position.
• Limit buy orders are placed based on your configured triggers and multipliers.
• A take-profit limit order is placed, which adjusts dynamically with the average cost.

⚙️ Strategy Execution: How It Works

• Each time an add-margin buy order is filled, your average cost is recalculated.
• The take-profit price updates dynamically based on the new average.
• Previous take-profit orders are canceled and reissued with the updated price.
• Once the take-profit order is filled: Unfilled add-margin orders are canceled. A new cycle begins using your original strategy settings.

You can terminate the strategy manually at any time and choose whether to sell the base coin at market price when exiting.

⛔️ Stop Loss & Risk Triggers

• If you set a stop-loss percentage, the strategy will automatically terminate when that threshold is hit.
• In cases of delisting, suspension, or major system anomalies, the strategy will also auto-stop to protect your funds.

📘 Real-World Example (BTC/USDT)

Assumptions:

• Current price: 20,000 USDT
• Price drop to add margin: 5%
• Take-profit: 10%
• First order: 100 USDT
• Add margin order: 200 USDT
• Max add margin levels: 4
• Multiplier for price drop: 1.5×
• Multiplier for order size: 2×
• Total invested: 3,100 USDT

Cycle 1 (T0):

• Buy 100 USDT at 20,000 (market)
• Place take-profit limit at 22,000 USDT
• Place four add-margin orders at progressively lower prices:

1. 19,000 USDT for 200 USDT;
2. 17,500 USDT for 400 USDT;
3. 15,250 USDT for 800 USDT;
4. 11,875 USDT for 1,600 USDT

Cycle Progress (T1):

• Price drops to 15,000 USDT
• First 3 add-margin orders filled
• Total BTC bought: 0.0908 BTC
• New average cost: 16,512.1 USDT
• Updated take-profit target: 18,163.31 USDT

Take-Profit Execution (T2):

• Price rebounds to 18,163.31
• Take-profit order triggers
• Position closed, profit realized
• New cycle begins

📌 Key Notes & Tips

• The strategy updates dynamically—every time an add-margin order is filled, your take-profit adjusts.
• Only actual user-funded trades are included in performance.
• Bonus trades are excluded from the strategy.

⚠️ Disclaimer

The Spot Martingale Strategy is a trading tool and should not be considered as financial or investment advice provided by BYDFI. The strategy can not promise to protect the capital, in the extreme unilateral market there is still a certain risk of loss. You agree to this agreement. It means that all trading strategies are at your own discretion and risk. For any loss you may incur due to the use of this product, BYDFI does not assume any liability. It is recommended that the user reads the guide to the Spot Martingale strategy, a reasonable assessment of their own risk-bearing ability, rational decision-making.

🎥 Watch Tutorial

👉 YouTube Tutorial

💬 Need Help?

If you need help setting up or managing your Spot Martingale Strategy, contact our 24/7 support team via live chat or email: cs@bydfi.com.