Candle-to-Candle Recovery Ladder Strategy
A Pine v6 strategy from a hand sketch: trade each candle's colour with a loss-recovery quantity ladder, verified on every one of 8,999 trade pairs.
Three recovery modes (step list, multiplier, auto cover-last-loss), colour-versus-P&L loss basis, JSON alert messages per order, a diagnostics table, and an honest backtest that showed no edge.
- Ladder verified on 8,999/8,999 trade pairs
- Three recovery modes and configurable loss basis
- JSON alert payload per order
- No-edge result reported, not hidden
The client specification arrived as a photographed sketch and a paragraph: go long on a green close and short on a red one, exit after one candle or on an opposite-colour close, and after each losing candle step the next order quantity up a fixed ladder, resetting to the base after a win. The implementation uses its own state bookkeeping with orders processed on close and no pyramiding, offers three recovery modes, lets the user define a loss by candle colour or by realised P&L, emits a JSON alert message per order for downstream automation, and shows a diagnostics table.
Verification was exhaustive rather than sampled: the ladder was correct on 8,999 of 8,999 consecutive trade pairs, holds were one candle, there were zero overlaps, and same-bar close-and-re-enter worked. The backtest with defaults on Nifty 15-minute showed a profit factor under one, which was expected for a martingale-style ladder and stated to the client plainly.
One ambiguity in the sketch (an extra step after a winning candle that contradicted the text) was followed per the text and flagged as the single change to make if the client meant otherwise.
Client strategy tool; shared as engineering work, not financial advice.
How it works
- Candle colour decides direction on close
- Position exits after N candles or on an opposite close
- Loss advances the quantity ladder; win resets it
- Each order emits a JSON alert for automation
- Diagnostics table shows ladder state and verification counts
Software and automation are infrastructure, not financial advice. No performance guarantees. Every live system needs staged testing, risk limits, and owner approval.