Trying to identify a counter-trend trading strategy seen on TikTok

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Hello everyone,

I recently came across a trader on TikTok and followed him out of curiosity to PU Prime, where he is running a PAMM account. I decided to join with a very small amount, mainly to observe and understand the system — and honestly, I’m quite impressed by the performance so far.

I’m not questioning the broker or the PAMM setup itself. What really caught my attention is the trading behavior and consistency I can see from the open positions.

From what I observe, the strategy looks like a counter-trend / mean-reversion approach:

  • When price moves up, sell positions are gradually built
  • When price moves down, buy positions are gradually built

This is very visible on Gold (XAUUSD). I’ve seen very similar behavior on US30 with other TikTok traders as well.

What really stands out to me is the number of trades and the consistency of the profits — it honestly surprised me more than I expected.

I tried to replicate this logic myself using <advisor-name-redacted> in counter-trend mode and got some decent results, but not at the same level of smoothness or consistency that I’m seeing in this PAMM account.

Now I’m genuinely curious:

  • Does anyone recognize this type of system?
  • Is this a known MT5 EA or a modular/builder-based system?

I’m not looking to blindly copy anything — I’m mainly interested in understanding the underlying logic and framework behind it.

Any insights would be appreciated.

Cheers
 
Wahid Ragheb Keilani:
  • When price moves up, sell positions are gradually built
  • When price moves down, buy positions are gradually built

    • You just described a Martingale strategy that originated on a roulette wheel in a casino. It looks great for short term marketing purposes but blows the account in the long term. Don't be fooled by it.

    Beginning traders frequently fall victim to Martingale strategies.

     
    Wahid Ragheb Keilani:
    <advisor-name-redacted>

    I have removed the name of the advisor because discussion of market products is not allowed on the forum.

    I believe if you describe the logic of the system in your own words (as you understand it), you have a chance to spark some interesting discussion. Please note that advertising is not allowed on the forum, so please try to avoid using specific products or services as examples.

     
    Ryan L Johnson #:

    You just described a Martingale strategy that originated on a roulette wheel in a casino. It looks great for short term marketing purposes but blows the account in the long term. Don't be fooled by it.

    Beginning traders frequently fall victim to Martingale strategies.

    There is no information provided that allow you to say it's a Martingale. Could just by a grid or anything similar without a Martingale, which of course can also be dangerous but it's not the point.
     
    Alain Verleyen #:
    There is no information provided that allow you to say it's a Martingale. Could just by a grid or anything similar without a Martingale, which of course can also be dangerous but it's not the point.

    Except for this, of course:

    Wahid Ragheb Keilani:
  • When price moves up, sell positions are gradually built
  • When price moves down, buy positions are gradually built

    • With no additional trading conditions present, that is the textbook definition of straight up Martingale.

     
    Ryan L Johnson #:

    Except for this, of course:

    With no additional trading conditions present, that is the textbook definition of straight up Martingale.

    Not at all, it is a necessary but insufficient condition. Please prove your claim with some source(s).
     
    Ryan L Johnson #:

    Except for this, of course:

    With no additional trading conditions present, that is the textbook definition of straight up Martingale.

    Not necessarily. For example, let's say you want to open a position with a volume of 0.2 (which represents a reasonable or even conservative risk percentage). You can do this with a single order of 0.2 or split it into four entries of 0.05 each.
     

    Hi everyone,

    sorry if my previous post caused any misunderstanding. It was not meant as advertising, and I’m not trying to promote or recommend any product, service, or system.

    I fully understand that, especially on TikTok, one has to be very cautious. That’s exactly why I approached this purely out of curiosity. My intention is not to encourage anyone to follow this approach, but simply to understand the underlying logic behind it.

    Regarding the Martingale discussion, I’m not fully convinced this fits the classic definition. In what I observe, there can be many open positions at the same time, for example 12 sell positions and 2 buy positions, all with similar position sizes and placed at different times. The positions are built gradually, but not by increasing or doubling size after losses.

    For that reason, it also doesn’t look like a traditional grid to me. The exposure is clearly asymmetric, not evenly distributed above and below price. That asymmetry is what makes me think this is some form of counter-trend approach with additional rules, rather than a simple grid or Martingale.

    If my earlier wording was unclear, that’s my fault. English is not my first language, and I tried to describe what I see as precisely as possible. Again, this is not meant as advertising, and I’m not suggesting anyone should follow such a system. I’m just trying to understand what’s going on.

    Thanks for your understanding.


     
    Ryan L Johnson #:

    Except for this, of course:

    With no additional trading conditions present, that is the textbook definition of straight up Martingale.

    Vladislav Boyko #:
    Not necessarily. For example, let's say you want to open a position with a volume of 0.2 (which represents a reasonable or even conservative risk percentage). You can do this with a single order of 0.2 or split it into four entries of 0.05 each.
    Either way, this creates a group of trades in a range or group that "adds up" to result in a similar "fashion" as a mg system. I use it to trade daily. It is less risky as a mg because of the gradual increase of risk, rather than a "straight out", big trade, first up -- BUT -- IF that range is too big, is just as risky as a mg system, despite the smaller, individual trades.
     
    Alain Verleyen #:
    Not at all. Please prove your claim with some source(s).
    • "The martingale system is a methodology to amplify the chance of recovering from losing streaks.
    • The martingale strategy involves doubling up on losing bets and reducing winning bets by half.
    • It is essentially a strategy that promotes a loss-averse mentality that tries to improve the odds of breaking even, but also increases the chances of severe and quick losses.
    • Forex trading is more well-suited to this type of strategy than for stock trading or casino gambling."

             (Martingale System: What It Is and How It Works in Investing).

    Applying those principles to the OP's post, we get:

    Wahid Ragheb Keilani:
  • When price moves up, sell positions are gradually built
  • When price moves down, buy positions are gradually built


    • Additionally...

           "Martingale strategies rely on the theory of mean reversion."

           (Martingale System: What It Is and How It Works in Investing,  emphasis added).

    Applying that principle to the OP''s post, we get (emphasis added):

    Wahid Ragheb Keilani:
    From what I observe, the strategy looks like a counter-trend / mean-reversion approach...
     
    Wahid Ragheb Keilani #:

    Are positions in the same direction (on the same symbol) always closed at the same time?

    [edit] That is, when positions are closed, are all positions (in the same direction) closed simultaneously? Or can they act as independent positions rather than grid components?
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