A Futures Strategy That Reverses and Doubles Position Size After Losses

Summary

This annotated strategy explanation describes a crypto futures system that opens an initial position, places a take-profit order, and monitors for either a profitable exit or a stop-loss trigger. When the stop is reached, it cancels outstanding orders, closes the position, and opens a reversed position with a larger size. Configurable direction and execution modes determine how trades are entered, while helper functions manage orders, account data, positions, and quotes. The system also limits repeated reversal attempts and checks available account funds.

The document focuses on code structure and execution flow rather than measured returns: it supplies no performance analysis or backtest results. The original setting is an older coin-margined crypto futures venue, and the author presents the material for studying strategy design. Reversing and increasing exposure after losses can magnify drawdowns and liquidation risk; the text explicitly cautions against treating the example as a live-ready strategy.

Key ideas

• The system alternates between a take-profit order and monitoring for a stop that triggers a position reversal.
• After a stop, the strategy increases the next position size, subject to configured limits and available funds.
• Helper functions handle quote checks, order cancellation, account status, and position lookup.
• The explanation teaches execution flow but provides no evidence of profitability.
• Increasing exposure after losses can raise futures losses and liquidation risk.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.