Futures Loss Recovery Through Reversal and Position Doubling

Summary

This futures algorithm opens an initial long or short, then monitors a configured profit-taking price and a stop threshold. When the stop threshold is crossed, it closes the position and attempts a new position sized as a multiple of the closed amount. A mode setting determines whether the next trade reverses direction or continues in the same direction; a maximum failure count limits repeated recovery attempts.

The document exposes controls for leverage, order style, slippage, profit and loss thresholds, multiplier, and polling interval, and includes execution logic for submitting, canceling, and monitoring orders. It provides no backtest results or evidence that the recovery sequence improves returns. Position size can grow rapidly after losses, and the algorithm can stop when its failure limit is reached or available funds are insufficient. Trading costs, fills, and contract-specific behavior also affect results, making this a high-risk progression method rather than a demonstrated edge.

Key ideas

• After a configured loss threshold, the algorithm closes the position and opens another at a multiplied size.
• A setting selects whether the next position reverses direction or keeps the same direction.
• The system includes leverage, order handling, profit and loss thresholds, and a limit on repeated failures.
• Larger recovery positions can increase exposure quickly, while insufficient funds can prevent a new trade.
• The document presents no backtest evidence for the method’s profitability.

Tags

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