In MagicTradeBot, the Sequence defines how position size progresses after consecutive wins or losses. Different sequence types reflect different philosophies of risk, recovery speed, and capital preservation.
Below are some of the most widely used and proven progression styles in trading.
1️⃣ Fibonacci – Gradual Recovery, Balanced Risk
Sequence: [1, 1, 2, 3, 5, 8, 13, 21]
Philosophy: Controlled recovery with smooth scaling.
- Increases position size gradually
- Avoids aggressive exponential jumps
- Suitable for medium win-rate strategies
- Keeps drawdowns more manageable than Martingale
Best for:
- Swing trading
- Trend-following systems
- Moderate leverage setups
Why traders like it: It provides a structured recovery model without exposing the account to extreme risk escalation.
2️⃣ Martingale – Fast Recovery, High Risk
Sequence: [2, 4, 8, 16, 32, 64]
Philosophy: Double down to recover losses quickly.
- Exponential growth in position size
- Very fast recovery after one win
- Extremely capital intensive
- High risk during long losing streaks
Best for:
- Very high win-rate systems
- Low volatility markets
- Traders with strict capital limits and safeguards
⚠️ Risk increases exponentially. Requires strict max-step control and strong capital reserves.
3️⃣ Linear / Step-Based – Predictable and Controlled Growth
Sequence: [1, 2, 3, 4, 5, 6]
Philosophy: Gradual, fixed increment scaling.
- Predictable progression
- Lower volatility in exposure
- Easier to model and backtest
- Slower recovery compared to Martingale
Best for:
- Conservative traders
- High-frequency scalping
- Multi-symbol trading
This is one of the safest adaptive models.
4️⃣ Reverse Martingale (Anti-Martingale) – Scale Winners Only
Sequence: [1, 2, 4, 8, 16]
Mode: 1
Philosophy: Increase size after wins, reduce after losses.
- Protects capital during losing streaks
- Compounds profits during strong performance
- Risk-reducing approach
- Often safer for long-term automation
Best for:
- Trend-following systems
- Breakout strategies
- Bots with stable win consistency
This is widely considered a professional risk-scaling model.
5️⃣ Fixed Fractional Hybrid – Conservative Compounding
Sequence: [1, 1, 1.5, 2, 2.5, 3]
Philosophy: Small controlled increases.
- Slower progression
- Low capital stress
- Balanced recovery and safety
Best for:
- Smaller accounts
- Moderate leverage
- Traders focused on long-term stability
6️⃣ Custom Adaptive Sequences
Some advanced traders create:
- Short sequences with hard caps
- Sequences that reset aggressively
- Symbol-specific sequences (when SkipSymbol = true)
Example:
Sequence: [1, 1, 2, 2, 3]
MoveBackSteps: 2
This creates controlled growth with fast de-escalation after recovery.
🔹 Quick Comparison
| Sequence Type | Risk Level | Recovery Speed | Drawdown Risk | Best For |
|---|---|---|---|---|
| Fibonacci | Medium | Moderate | Moderate | Balanced trading |
| Martingale | Very High | Very Fast | Very High | High win-rate systems |
| Linear / Step-Based | Low-Medium | Slow | Low | Stable multi-symbol bots |
| Reverse Martingale | Medium | Performance-based | Low-Medium | Trend strategies |
| Hybrid Conservative | Low | Slow-Moderate | Low | Long-term growth |
🔹 Which One Should You Choose?
Choose based on:
- Account size
- Strategy win rate
- Leverage used
- Maximum acceptable drawdown
- Trade frequency
General guidance:
- 🔐 Conservative → Linear or Hybrid
- ⚖ Balanced → Fibonacci
- 🚀 Aggressive → Martingale
- 📈 Professional scaling → Reverse Martingale
⚠️ Important Reminder
Higher sequences increase risk exponentially.
Always:
- Backtest across bullish, bearish, and sideways markets
- Monitor maximum drawdown
- Limit maximum sequence step
- Avoid combining aggressive sequences with high leverage