1.2 progression (ladder)
Definition
The 1.2 progression (ladder) is a money-management method with a soft step: after a loss the next trade's size is multiplied by 1.2, after a win it steps back down one rung, and once the accumulated loss of the series is recovered it resets to the base amount. With a base of 1% of the deposit, the ladder survives 16 losses in a row — nearly three times more than martingale.
How the ladder works
There are four rules, all about the size of the next trade:
- the first trade of a series is the base amount, 1–2% of the deposit;
- after a loss the size climbs one rung: multiplied by 1.2;
- after a win it steps back down one rung;
- once the accumulated loss of the series is recovered, the size resets to the base — the series is closed. On reaching the rung limit the reset is forced, with the series loss locked in.
The idea is the opposite of martingale: not to win the whole series back with one large trade, but to dismantle the drawdown with several wins in a row. That is why the step is so small — the ladder never needs a single trade to cover everything.
How much the deposit survives
The math with a $1 base trade and a $100 deposit — that is, a 1% base:
| Losses in a row | Next trade | Spent on the series |
|---|---|---|
| 5 | $2.49 | $7.44 |
| 10 | $6.19 | $25.96 |
| 16 | $18.49 | $87.44 |
After the sixteenth loss the series has consumed $87.44, and the seventeenth rung — $18.49 — no longer fits into what is left. Martingale, with its steep step, hits the same deposit around the sixth rung: the soft step buys the ladder nearly three times the room for error.
How it differs from the Fibonacci progression
Both methods recover drawdown gradually rather than with one trade. The difference is the step and the retreat: the ladder grows by a fixed 1.2 multiplier and steps back one rung after a win, while the Fibonacci progression follows the sequence 1, 1, 2, 3, 5, 8 and steps back two numbers. Thanks to the double retreat, Fibonacci closes a series faster on wins but also builds sizes more steeply. The ladder is gentler and more predictable — the calmest of the recovery methods.
Frequently asked questions
Why is the step exactly 1.2?
It is a compromise between recovery speed and staying power. A 1.1 step is even softer — the deposit survives 25 straight losses, but the drawdown takes noticeably longer to dismantle. A step above 1.3 quickly pushes the ladder toward martingale and strips it of its main advantage — the right to a long losing streak.
How does the ladder differ from martingale?
In what a single trade is asked to do. Martingale demands that one win cover the whole series of losses at once, so sizes grow like an avalanche — a 2.25 step at an 80% payout. The ladder recovers drawdown gradually, over several wins, and thanks to the soft step it survives 16 straight losses against roughly six for martingale on the same deposit.
Why is a series length limit needed?
Without a limit, any progression sooner or later runs into the deposit — a soft one just does it more slowly. A limit, usually 10 rungs, means: you reach the tenth, lock in the series loss, and return to the base amount. That is the only thing separating a progression from a postponed wipeout.
Does the ladder give a mathematical edge?
No. It changes neither the payout percentage nor the share of winning trades — it only spreads the result you already have over time. Profit over distance still comes from beating the break-even threshold; the ladder merely lets you outlive a bad stretch and stay in the game.