Spot Martingale Glossary and Key Parameters

[Estimated reading time: 5 mins]

This article explains the key terms, settings, and advanced parameters used when configuring spot Martingale trading bots on Bitget.

 

What is spot martingale?

Spot Martingale is an automated trading strategy that helps you buy assets in batches as prices fall and sell them when your target profit is reached. It lowers your average entry cost and automates buy-low, sell-high cycles.

You can choose between AI-generated suggestions or manually customize every parameter. Spot Martingale also supports technical triggers, infinite cycles, and reinvestment through auto-renewal.

 

Bot modes

AI mode: Bitget recommends parameters based on historical data, market volatility, and your selected investment. This mode is ideal for users who prefer guided automation.

Manual mode: You define every parameter, including investment size, price intervals, trigger conditions, and more. This mode is recommended for users with trading experience and specific strategy preferences.

 

Trigger requirements

• Price drop steps: Sets the percentage drop from the base order that triggers each safety order. The price difference is calculated in the quote currency.

• Single-cycle TP target: Defines the take-profit target for each cycle. ROI formula: TP ROI = TP target price ÷ average position cost − 1. Once the TP price is reached and the order is fully executed, the current cycle ends and a new one begins.

 

Investment parameters

• Base order size: The initial order placed when the bot opens a position at the start of a cycle.

• Safety order size: The size of each follow-up order placed as the price continues to drop. These orders help reduce the average entry price.

• Max safety orders: Sets the number of safety orders the bot can place per cycle based on your available margin.

• Available: The total funds in your spot account available for the bot.

• Required margin: The estimated funds needed to run the bot based on your configuration.

 

Advanced settings

Cycles

The number of times the bot will run to take profit.

• If a number is selected, the bot will stop after that many cycles.

• If set to Infinite, the bot will run continuously as long as sufficient funds are available.

Starting condition

Determines when and how the bot places the base order.

• Immediate trigger: Places the base order immediately after the bot is created.

• Price trigger: Places the base order when the market reaches your preset trigger price.

• Average price in the previous cycle: After taking profit, the bot waits for the price to drop below the previous cycle's average price before entering a new cycle.

• RSI trigger: Uses the RSI indicator to trigger the initial order and each new cycle. Since RSI is not price-based, ensure your investment amount is sufficient; otherwise, the order may fail.

• BOLL trigger: Uses Bollinger Bands to trigger orders based on volatility signals. As with RSI triggers, make sure your investment amount is sufficient before activating the bot.

Safety order parameters

• Multiplier (safety order size): Defines how much larger each subsequent safety order will be compared to the previous one.

  • The bot multiplies each new safety order amount based on the last order.

  • This helps increase the buying amount as the price drops, accelerating the reduction of the average entry cost. Example:

  • Base safety order size: 100 USDT

  • Multiplier: 2

  • Safety order amounts:

    • 1st order: 100 USDT

    • 2nd order: 200 USDT

    • 3rd order: 400 USDT

    • 4th order: 800 USDT

• Multiplier (safety order price interval): Defines how far apart (in percentage terms) each safety order is placed.

  • The bot increases the gap between each order using the multiplier.

  • This helps spread orders across a wider price range when the market is highly volatile. Example:

  • Base interval: 1%

  • Multiplier: 2

  • Safety order trigger points:

    • 1st safety order: Placed when the price drops by 1% from the initial order.

    • 2nd safety order: Placed when the price drops by 3% from the initial order.

    • 3rd safety order: Placed when the price drops by 7% from the initial order.

    • 4th safety order: Placed when the price drops by 15% from the initial order.

  • Formula: Cumulative interval = Previous total + (base interval × 2ⁿ), where n is the order number starting from 0.

Sell all at termination

When enabled, the system will sell all remaining holdings once the bot's termination condition is met and the bot stops running.

Auto-renewal with profits

• When enabled, profits earned from completed cycles will be reinvested automatically into the next cycle.

• Your base order size and safety order size will adjust dynamically based on the new total investment amount. Profits will remain within the bot instead of being withdrawn to your spot account.

 

Profit and loss definitions

• Total profit: The cumulative profit earned since the bot started. Formula: Martingale profit + floating PnL.

• Martingale profit: Realized profit after completed trades, minus transaction fees.

• Floating PnL: Unrealized gain or loss from open positions. Formula: (current price − average entry price) × position size.

• APY: Annualized rate of return. Formula: (total profit ÷ initial margin ÷ days active) × 365.

 

 

FAQ

1. What happens if the market keeps falling after all safety orders are placed?
If the market continues to drop after reaching your max safety orders, the bot will stop placing additional buy orders for that cycle. Your position will remain open until the price rebounds and reaches your take-profit (TP) target. If the price does not recover, the position will remain at a floating loss.

2. Can I edit the parameters after the spot Martingale bot starts running?
After the spot Martingale bot starts running, some parameters can still be adjusted. You can modify settings such as - adding or reducing positions at market price - margin amount - take-profit (TP) target - max safety orders - number of cycles - termination conditions - auto-renewal with profits (enable/disable) If you need to change parameters that cannot be edited, you must stop the bot and create a new one with the updated settings.

3. What is the difference between total profit and Martingale profit?

• Total profit includes both realized gains and unrealized (floating) profit or loss.

• Martingale profit refers only to realized profit from completed cycles, minus trading fees. Floating PnL will fluctuate with market prices until the position is closed.

4. Is infinite mode risky?
Infinite mode allows the bot to run continuously as long as sufficient funds are available. While it enables ongoing profit opportunities, it also increases exposure to prolonged market downturns. We recommend monitoring your bot regularly and setting parameters that match your risk tolerance.

5. What should I consider when using RSI or BOLL triggers?
RSI and BOLL triggers rely on technical indicators rather than fixed prices, which means orders may be triggered during periods of high volatility. Ensure your available funds are sufficient before activating the bot. If the investment amount is too low, the initial or subsequent orders may fail.

6. What market conditions are suitable for using spot Martingale?
Spot Martingale bots are best suited for sideways or volatile market conditions, where prices fluctuate within a range. This bot helps you build positions gradually and average down the cost as prices decline. As the market rebounds, the system can automatically sell once the predefined take-profit target is reached.

 

Disclaimer

Spot Martingale is a trading automation tool, not financial advice. Market conditions and custom parameters may affect bot performance. Monitor your bot regularly and adjust settings based on your strategy and risk tolerance.

 

 

 

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