Recovery Mode
Recovery Mode
Recovery Mode increases position size after losing trades, aiming to recover losses faster when the next winning trade occurs. It includes Martingale, Linear, and Custom progression types.
How Recovery Mode Works
- Strategy starts with the base position size
- After a losing trade, position size increases according to the chosen progression
- After a winning trade, position size resets to base
- Max steps limit prevents unlimited scaling
Progression Types
Martingale
Each losing trade multiplies the position size by a fixed factor.
| Loss # | Multiplier | Size (base $100) | |--------|-----------|-----------------| | 0 | 1.0× | $100 | | 1 | 2.0× | $200 | | 2 | 4.0× | $400 | | 3 | 8.0× | $800 | | 4 | 16.0× | $1,600 |
With multiplier 2.0×, the size doubles after each loss. A single win recovers all previous losses plus the base profit.
Linear
Each losing trade adds a fixed step to the position size.
| Loss # | Increase | Size (base $100, step $50) | |--------|----------|---------------------------| | 0 | +$0 | $100 | | 1 | +$50 | $150 | | 2 | +$100 | $200 | | 3 | +$150 | $250 | | 4 | +$200 | $300 |
Growth is slower and more controlled than Martingale.
Custom
Define your own multiplier/step values for each loss level, giving complete control over the progression curve.
Configuration
| Parameter | Description | Example | |-----------|-------------|---------| | Base Size | Starting position size | 10% of account | | Progression | Martingale / Linear / Custom | Martingale | | Multiplier | Factor for Martingale | 2.0 | | Step | Increment for Linear | $50 | | Max Steps | Maximum consecutive losses before reset | 5 |
Max Steps
The Max Steps parameter is critical for risk control:
- After reaching max steps, size resets to base
- Prevents position sizes from growing to catastrophic levels
- Set max steps based on your account's ability to absorb worst-case scenarios
Risk by Max Steps (Martingale 2×, base $100)
| Max Steps | Worst Case Total | Max Position | |-----------|-----------------|-------------| | 3 | $700 | $400 | | 4 | $1,500 | $800 | | 5 | $3,100 | $1,600 | | 6 | $6,300 | $3,200 |
Warning: Martingale with high max steps can wipe out an account. 5 consecutive losses at 2× multiplier requires 31× the base position. Always calculate the worst case before using Recovery mode.
When to Use Recovery Mode
| Scenario | Recommendation | |----------|---------------| | High win-rate strategy (>60%) | Moderate Martingale (1.5×, max 3-4 steps) | | Mean-reversion strategy | Linear recovery (slower growth) | | Trend-following strategy | Avoid — can have long losing streaks | | Testing sensitivity | Custom with conservative steps |
FAQ
Q: Is Martingale safe? A: No Martingale is "safe." It trades smaller average losses for rare catastrophic ones. Use only with high-winrate strategies and strict max steps.
Q: Can I combine Recovery with Grid Entry? A: Yes, but be careful — both increase position size. The combined exposure can be extreme.
Q: What happens when max steps is reached? A: Position size resets to the base amount. The next trade uses the standard base size.