8-envelope counter-trend EA #3: How the lot size increases (lev8 means "the deeper, the stronger")
In the previous article, we organized the reasons why daedalus-k (lev8 / lev10) tends to be “range-friendly but weak in strong trends” from the perspective of range and trend.
This time, as a sequel, we will summarize as simply as possible the feature of daedalus-k-lev8: the mechanism where the lot size increases as the deviation deepens.
（Note: This article does not guarantee trading results. Please verify and practice in a demo before live operation.）
1) Conclusion: the deeper the deviation (strong price movement), the larger the lot
daedalus-k-lev8 uses eight envelopes to tier the depth of deviation.
From shallow deviation (LEV1) to deep deviation (LEV8) as levels,
the design makes the larger lots as the level gets deeper.
The aim is simple:
“Don’t push a large position at a shallow level, but target more strongly when the move is too deep.”
This is the idea.
2) 8 envelopes = visualizing how far the move has gone beyond
This EA visualizes the progression from lines with small deviation to lines with larger deviation in order.
From shallow deviation to deep deviation, step by step.
(Default example)
0.15% / 0.20% / 0.25% / 0.30% / 0.40% / 0.50% / 0.60% / 0.70%
* Envelope period: 20
* Moving average: Exponential (Close)
In other words, by how far the price has moved away from each line,
we can determine step by step how far it has strayed.
3) Increasing the lot: both benefits and risks increase
The design of increasing lot size with deeper deviation carries both benefits and cautions.
【Benefits】
・In cases where a strong pullback occurs, the returns are easier to target
・Easier to avoid unnecessary over-commitment at shallow levels
・Easier to judge “how far to pull back”
【Cautions】
・In strong trends, if deep deviation continues, risk also tends to increase
・Market conditions (range vs. trend) become more important
・If uncertain, it is safer to adjust the lot size to create an upper limit
4) If uneasy: keep the lot fixed or set an upper limit
If you are afraid of the lot increasing, the following are practical options for operation.
・Set the same lot for all levels (fixed)
・Limit the lots for LEV7–LEV8 (upper limit)
・Make the higher-level operation conditions stricter (lower frequency)
First, observe the default behavior, then adjust the lot size if you feel uneasy—that is safe.
5) How is lev10 different?
Lev10 is a model that can judge even deeper deviation zones than lev8.
As a result, it is aimed at people who want to pull back even deeper (wait for wider fluctuations).
However, aiming for deeper zones also increases the importance of risk management in strong trend scenarios,
so it is recommended to first check whether the market is more range-bound.
Summary: designed to target more strongly as deviation deepens. Therefore, market selection and upper limit management are crucial
・Eight envelopes tier the depth of deviation
・The deeper the deviation, the larger the lot (target more strongly with stronger moves)
・While there are benefits, risk tends to increase in trend phases
・If uneasy, risk can be adjusted with fixed or upper-limit lot sizing
・Lev10 is a model that waits for one more deeper level, increasing the importance of management
【Product Page】
daedalus-k-lev8：
daedalus-k-lev10：
（Note: This article does not guarantee trading results. Please verify and practice in a demo before live operation.）
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