How the Paroli Strategy Works on Deriv
Paroli is a reverse Martingale: it doubles your stake after a win and drops back to the base stake after a loss.
How Paroli works
You double the stake after each win, usually for a fixed number of wins in a row. A common version uses three. After that streak, or after any loss, the stake returns to one unit.
Because you only raise the stake when you are ahead, a losing run costs you the base stake each time, not a growing amount.
The rules
- Start at one unit.
- Win: double the stake, for up to three wins in a row.
- Loss, or after the third win: back to one unit.
A worked example
| Trade | Result | Stake (USD) |
|---|---|---|
| Trade 1 | Win | 10.00 |
| Trade 2 | Win | 20.00 |
| Trade 3 | Win | 40.00 |
| Trade 4 | Loss | 10.00 |
| Trade 5 | Win | 10.00 |
| Trade 6 | Win | 20.00 |
| Trade 7 | Loss | 40.00 |
| Trade 8 | Win | 10.00 |
Paroli with a 10 USD unit and a three-win streak.
Risks to understand
Streaks are short
Big stakes only occur after wins, but a single loss then takes the whole streak's gains back.
Lost wins add up
Each failed streak means the doubled stakes were at risk without being banked.
No edge
Staking more after a win does not make the next trade more likely to win.
Using Paroli in AI Binary Bots
Choose it from the Progression Strategies dropdown in the Trading Panel, then turn on risk management to add a stop loss and take profit. Practice on a Deriv demo account first and review drawdown and largest loss in Trade analytics. No staking plan creates an edge: progressions only reshape how much you stake, not whether a trade wins.
Test Paroli on a Deriv demo account before you risk real money.
Get StartedFrequently asked questions
- Is Paroli the opposite of Martingale?
- Yes. Martingale raises the stake after a loss, Paroli raises it after a win.
- How many wins does Paroli run?
- The common version runs three wins in a row, then resets. The streak length is a choice in the plan.
Keep reading
Risk warning: Trading binary options involves a high level of risk and you could lose your entire stake. Only trade with money you can afford to lose. This page is educational and is not financial advice.