Labouchere Bet Sequencing for a Stochastic-Crossover Expert Advisor

Summary

The document explains an Expert Advisor that manages trade size using a Labouchere sequence. At the start of a cycle, the trader defines a list of lot amounts. Each order uses the sum of the first and last amounts; after a winning trade, those two entries are removed, while after a losing trade, an entry equal to the order size is appended. The cycle ends when the sequence is exhausted or reduced to one amount, after which the EA can either restart or stop opening trades.

Trade entries come from a crossover between the stochastic oscillator’s main and signal lines. The EA allows only one open order, evaluates entries on a new bar, can restrict operation by time, and offers a setting to reverse buy and sell directions. The description says stop-loss and take-profit should be equal or nearly equal, but gives no test results or risk limits. Because losses can cause planned order sizes to grow, the sequence does not guarantee recovery and can expose an account to escalating risk; its performance depends on the entry signal and trade outcomes.

Key ideas

• Each trade size is set by adding the first and last amounts in a predefined sequence.
• Winning trades remove the two used amounts, while losses append an amount equal to that trade’s size.
• The EA enters on stochastic main-line and signal-line crossovers and permits one open order at a time.
• Users can choose whether to restart after a cycle and can configure time and direction settings.
• The document provides no performance evidence, and increasing trade sizes can raise exposure after losses.

Tags

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