The Martingale Strategy + Cashback: Does It Work?
The Martingale strategy is one of the most controversial and debated techniques in forex trading. It promises fast recovery from losses and the potential for big wins—but also carries high risk. On the other hand, forex cashback rewards you for every trade, win or lose. But what happens when you combine Martingale with cashback? Can it actually work?
Let’s explore this powerful (and risky) mix in detail.
What is the Martingale Strategy?
The Martingale system originates from gambling. The idea is simple:
Every time you lose, you double your next trade size—so when you eventually win, you recover all previous losses plus a small profit.
Example:
- Trade 1: $1 lot – Loss
- Trade 2: $2 lot – Loss
- Trade 3: $4 lot – Win → You recover all losses + earn $1
In theory, this approach guarantees a win. In practice, large drawdowns, margin calls, and account blowouts are common.
What is Forex Cashback?
Forex cashback is a rebate paid to traders for every lot they trade. It doesn’t matter whether the trade wins or loses—you still get $2 to $7 per lot back, depending on your broker and cashback provider.
Cashback is a reliable way to reduce effective trading costs and boost long-term profitability.
The Logic Behind Combining Both
So, why combine them?
Because the Martingale strategy increases trading volume rapidly, especially during losing streaks—and that volume generates more cashback.
The more you trade → the more rebates you earn.
Even if you end up break-even or slightly negative in trading results, the cashback might still leave you net positive.
Does It Actually Work?
It can work under certain conditions—but it’s far from safe or guaranteed.
Here’s how the combination plays out:
✅ Pros:
- Cashback Covers Some Losses
Every loss increases position size and trading volume, which boosts your cashback earnings—even if you’re down on trades. - Higher Trade Frequency = Higher Rebates
Martingale systems generate more trades in less time. If you’re receiving $5 per lot, this adds up quickly. - Break-Even Becomes Profit
Even if your account ends at breakeven in terms of P&L, cashback could still generate a profit.
❌ Cons:
- Insane Risk in Drawdowns
Martingale requires exponential capital as losses grow. If your account can’t handle the drawdown, you’ll face a margin call before recovery. - Broker Limitations
Some brokers may limit maximum lot size or penalize certain strategies. Plus, your cashback might only apply to specific account types. - Psychological Stress
Watching your trade sizes double (e.g., $1 → $2 → $4 → $8 → $16 → $32…) is mentally draining and emotionally risky.
Key Example:
Let’s assume you trade using Martingale and generate 20 lots in a week.
- Cashback = 20 lots × $5 = $100 earned
- Trading results = break-even
Net Profit = $100 (cashback only)
However, if that same series results in a 7-trade losing streak with no recovery—your losses could wipe out your account, and cashback won’t save you.
How to Use This Combo (If You Dare)
- Start with Micro Lots
Begin extremely small to avoid explosive growth in lot size. - Use a High Cashback Broker
Pick brokers with strong cashback rewards and no lot-size restrictions (e.g., XM, Exness, IC Markets via rebate partners). - Set a Stop or Maximum Martingale Level
Cap your doubling strategy after a few steps (e.g., 5 levels) to control risk. - Track Your ROI with a Calculator
Use a cashback ROI calculator to monitor if your rebates are actually offsetting your trading volatility.
Final Verdict
Does Martingale + Cashback work?
Sometimes—but only if you control risk, size positions carefully, and don’t overcommit capital. The cashback may ease the losses, but it doesn’t cancel out the risk of the Martingale system.
So, if you’re considering this combo:
✅ Go in with a detailed plan
❗ Be ready for volatility
💡 Use cashback as a supplement, not a safety net
Bonus Tip: Want a free Martingale + Cashback Tracker (Excel) to simulate your results? Just ask and I’ll send you the template.