Paroli strategy on Deriv: how the stake builds on a winning run

The Paroli strategy raises the stake after a win and drops it back to the start after a loss. It is the reverse of a martingale: you press your luck while you are winning, and a loss costs you about one starting stake. After a set number of wins in a row, the run is banked and the stake goes back to the start. BinaryTick runs Paroli as a free bot, with every number on its card before you press Run bot.

How the Paroli strategy moves the stake

On BinaryTick the strategy runs in Paroli Streak, one of the free Even / Odd bots. Its stake follows four rules, each shown on its card.

• After a win, the stake is multiplied by the Win multiplier, 2 by default.
• After a loss, the stake goes straight back to the Initial stake, 1 USD by default.
• After the Streak target, 3 wins in a row by default, the bot banks the run and the stake goes back to the start.
• The stake never climbs past the Max stake, 8 USD by default.

At the defaults a run uses three stakes: 1, 2 and 4 USD. The third win ends it.

The winnings ride along. When the second trade is placed at 2 USD, 1 USD of that is your starting stake and 0.95 USD is the first win's profit. So a run that breaks after one or two wins costs you about one starting stake, however far it got.

A run, worked through with real payouts

Paroli Streak trades one tick Even / Odd on Volatility 50. It follows the last digit: after an even digit it buys Even, and after an odd digit it buys Odd. When we ran it, Deriv paid 1.95 USD on a 1 USD stake, 3.91 USD on 2 USD and 7.81 USD on 4 USD.

A full run of three wins makes 0.95 + 1.91 + 3.81 = 6.67 USD, and the only money of yours at risk was the first 1 USD.

Here is an example of how eight trades play out at the default settings, worked through with those payouts.

Trade 1 loses at the starting stake, so the stake stays at 1 USD. Trades 2 and 3 win and the stake climbs to 4 USD. Trade 4 loses at the top of the run. That trade lost 4 USD, but 2.86 USD of it was the winnings from trades 2 and 3, so the run as a whole cost 1.14 USD.

Trades 5 to 7 are a full run: three wins at 1, 2 and 4 USD, worth 6.67 USD. The bot banks it, the stake drops to 1 USD, and trade 8 loses only that. After eight trades the session is 3.53 USD up.

What a losing run looks like

A losing run on Paroli is a string of 1 USD losses, because every loss sends the stake back to the start.

The card's Stop loss is 10 USD and Max losses in a row is 10, so ten losses in a row from the start end the session 10 USD down. Any win along the way adds to the session, so a mix of wins and losses takes longer to reach the stop loss.

The bot checks the stop loss after each trade, so the last trade can take the session past 10 USD. On Paroli that overshoot stays small. A loss at the starting stake costs 1 USD, and a loss higher up a run comes after the wins that raised the stake, which have already paid most of it back. At the defaults the worst case is a session sitting just under 10 USD down that wins twice and then loses at 4 USD: it ends just over 11 USD down, the stop loss plus the 1.14 USD a broken run costs.

Take profit stops the bot once the session is 10 USD up. One full run makes 6.67 USD and two make 13.34 USD, enough to reach it as long as the losses between them cost less than 3.34 USD. Every time you press Run bot, these totals start again from zero.

Paroli or martingale?

Both change the stake after each result. They move it in opposite directions.

• Martingale raises the stake after a loss, 2.1x on most BinaryTick bots, so one win repays the losses before it. A session sees many small wins, and a losing run costs 1, 2.1 and 4.41 USD before the Max stake sends the ladder back to the start. The martingale guide works through it.
• Paroli raises the stake after a win. A session sees many small losses of about 1 USD each, and the gains come in bigger pieces when three wins line up.

Martingale puts more of your own money in after a loss. Paroli puts its winnings back in after a win. The Fibonacci and D'Alembert guides cover two gentler ways to raise the stake after losses.

The settings that matter

Initial stake. The first stake of every run, and the amount a loss at the start of a run costs. Every other stake is a multiple of it, so halving it halves the whole run, as long as no stake reaches the Max stake. The minimum on the card is 0.35 USD.

Streak target. How many wins in a row the bot lets ride before it banks them, from 2 to 10. A longer target makes a full run worth more and puts more of the winnings back at risk on each extra trade. At a target of 4, a run stakes 1, 2, 4 and 8 USD. Deriv paid 15.63 USD on an 8 USD stake, so a full run makes 14.30 USD, which passes the 10 USD Take profit in one go. Raise the take profit if you want the bot to keep going after a long run.

Win multiplier. How much the stake grows after each win, from 1.1 to 5. At 1.5 the run stakes 1, 1.5 and 2.25 USD, so a loss at the top risks less of the winnings and a full run makes less.

Max stake. The ceiling, 8 USD by default. At the defaults the stake tops out at 4 USD, so the ceiling comes into play once you raise the Streak target, the Win multiplier or an Initial stake above 2 USD. With an Initial stake of 3 USD, the run stakes 3, 6 and then 8 USD rather than 12.

Cooldown after a loss (ticks). The bot sits out 1 tick after a losing trade before it trades again.

Duration (ticks). How many ticks each contract runs, 1 by default and up to 10.

Paroli in Bot Builder

BinaryTick's Bot Builder has a Quick strategy menu, and one of its options is Reverse Martingale. It multiplies the stake by a size you set after each win and goes back to the starting stake after a loss. That is Paroli without the streak target: the stake keeps climbing until a loss or your max stake stops it. Paroli Streak adds the target that banks the run. To see its rules as blocks, open Paroli Streak with Edit in Bot Builder, where you can change them or move them to another contract. If you already have a Paroli bot as an XML file, BinaryTick runs that too: the XML upload guide shows how.

Run it now

Open Paroli Streak and run it on your demo balance first. Watch the stake climb 1, 2, 4 on a winning run and drop to 1 USD after any loss. Then try a Streak target of 2 for shorter runs, or 4 with a higher Take profit for longer ones. The Even / Odd bots guide covers the rest of that family, and the stop loss and take profit guide explains every limit on the card.