Reverse Martingale Recovery After Stop Losses

Summary

This expert advisor describes a Martingale-style sequence: after a position is closed by its stop loss, it opens a position in the opposite direction and increases the lot size by a configured factor. Inputs include a starting lot, multiplier, cap on the number of increases, virtual stop loss and take profit levels, and an initial trade direction.

The document explains the mechanics and configurable settings but provides no backtest results, market assumptions, or evidence of profitability. Increasing exposure after losses can compound losses if the sequence continues, while the limit only caps the number of size increases. The stop and target levels are virtual, so the behavior depends on the advisor monitoring and managing positions. The description is therefore useful as a concise example of a recovery sizing rule, not as validation of a trading edge.

Key ideas

• After a stop loss, the advisor reverses the trade direction and raises the next lot size.
• The lot multiplier and maximum number of increases are configurable.
• The initial order direction can be set to buy or sell.
• Stop loss and take profit levels are virtual and managed by the advisor.
• The document provides no evidence that the recovery sequence is profitable.

Tags

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