Fibonacci strategy on Deriv: the stake sequence worked through

The Fibonacci strategy sets each stake from the Fibonacci sequence: 1, 1, 2, 3, 5, 8, where every number is the sum of the two before it. A loss moves the stake one place along the sequence, and a win moves it two places back. The stake grows by about 1.6 times per loss instead of doubling, so a losing run costs less than it would on a martingale. BinaryTick runs it as a free bot, with every number on its card before you press Run bot.

How the Fibonacci strategy moves the stake

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

• After a loss, the stake moves one place along the sequence.
• After a win, it moves two places back. A win near the start of the sequence sends it back to the first place.
• The stake is the Initial stake times the number at the current place. At the default 1 USD that gives 1, 1, 2, 3, 5 and 8 USD.
• The stake never climbs past the Max stake, 8 USD by default.

Max depth, 6 by default, is how many places the stake can move along the sequence. A loss past the last place sends the stake back to the start.

A run, worked through with real payouts

Fibonacci Recovery trades one tick Even / Odd on Volatility 25: it buys Even after an up tick and Odd after a down tick. When we ran it, Deriv paid 1.95 USD on a 1 USD stake, 3.91 USD on 2 USD, 5.86 USD on 3 USD and 9.77 USD on 5 USD. Here is an example of how eight trades play out at the default settings, worked through with those payouts.

Trade 1 wins at the starting stake, so the stake stays at 1 USD. Four losses then take it along the sequence to 5 USD, and the win there gets back most of what they cost. The stake drops two places, from 5 USD to 2 USD, rather than all the way to the start. Trade 7 wins at 2 USD and sends it back to 1 USD, and the session is ahead again.

After eight trades the session is 1.58 USD up. The four losses cost 7 USD at stakes of 1, 1, 2 and 3 USD. The win on trade 6 got back 4.77 USD of that, and the wins on trades 7 and 8 at the lower stakes did the rest, with the 0.95 USD from trade 1 already banked.

What a losing run looks like

At the defaults, a run of losses from the starting stake costs 1, 1, 2, 3 and 5 USD, 12 USD over five trades.

The card's Stop loss is 10 USD, and the bot checks it after each trade. Four losses leave the session 7 USD down, under the limit, so the bot places the fifth trade at 5 USD. If that loses too, the session ends 12 USD down. The general rule: a session can end down by just under the stop loss plus the largest stake the bot can place, and on this bot that stake is the 8 USD Max stake.

Max losses in a row is 6 by default. From the starting stake the stop loss arrives first, after five losses. Take profit stops the bot once the session is 10 USD up. Every run starts these totals from zero.

Fibonacci, martingale or D'Alembert?

All three raise the stake after a loss. They differ in how fast the stake climbs and in what one win does.

• Martingale multiplies the stake after each loss, 2.1x on most BinaryTick bots, and one win recovers the run, as long as it comes before the max stake sends the ladder back to the start. The martingale guide works through its ladder.
• Fibonacci grows the stake by about 1.6 times per loss and steps back two places on a win, so a win recovers much of a run without clearing it.
• D'Alembert adds one fixed step per loss and takes one off per win, so the stake climbs in a straight line. The D'Alembert guide works through it.

Five losses in a row from 1 USD cost 12 USD on the Fibonacci sequence and 15 USD on D'Alembert steps of 1 USD. A martingale with no ceiling would stake 1, 2.1, 4.41, 9.26 and 19.45 USD over the same run; BinaryTick's martingale bots cap that with their Max stake.

The settings that matter

Initial stake. The first place in the sequence. Every stake is a multiple of it, so halving it halves the whole ladder. The minimum on the card is 0.35 USD.

Max depth. How many places the stake can move along the sequence before a loss sends it back to the start. A lower depth keeps the ladder short.

Max stake. The ceiling. At the defaults the seventh number in the sequence would be 13 USD, and the 8 USD max stake holds the stake there.

Cooldown after a loss (ticks). The bot sits out 1 tick after a losing trade before it looks for a new entry.

Duration (ticks). How many ticks each contract runs, 1 by default.

Using the Fibonacci strategy from Deriv's Bot Builder

Deriv's help centre lists three Quick Strategies: Martingale, D'Alembert and Oscar's Grind. Fibonacci is not one of them. If you have a Fibonacci bot as an XML file, you can still run it on BinaryTick: open Bot Builder, press Load and pick the file. The XML upload guide walks through it. To see the rules this post describes as blocks, open Fibonacci Recovery with Edit in Bot Builder.

Run it now

Open Fibonacci Recovery and run it on your demo balance first. Watch the stake move along 1, 1, 2, 3, 5 after losses and drop two places after a win. Then try a smaller Initial stake or a lower Max depth and see how the ladder changes. 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.