Alternating Buy and Sell Orders with Scaled Recovery Multipliers

Summary

The document outlines an automated recovery system that begins with a buy order. If price rises, the order is closed; if price falls by a configured distance, the system opens a sell. If the overall profit target has not been reached and price reverses upward, it opens a buy at a distance from the sell price, with that distance adjusted by a multiplier. The process can continue by alternating order direction.

Distance, lot size, and aggregate profit settings can each be adjusted with multipliers, and the target may depend on how many orders are open. This describes a rule-based averaging or recovery approach, but the document supplies no entry rationale, market conditions, position limits, backtest, or performance evidence. Repeated orders and changing lot sizes can accumulate exposure while price moves persistently against the sequence, so the stated mechanics alone do not establish that the system can recover losses or control risk.

Key ideas

• The system starts with a buy and opens an opposing order after price moves against it by a configured distance.
• Price reversals can trigger further alternating orders if the aggregate profit condition remains unmet.
• Distance, lot size, and overall profit settings can be scaled with multipliers.
• The document provides no evidence of performance or rules for limiting accumulated exposure.

Tags

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