? Lotus (Lotus) Geometric Dollar Averaging Deep Dive

■ 【Diagram】Why does it not blow up? The secrets of the Lotus-style geometric averaging

The reason why ordinary averaging EAs go bankrupt in market shocks (XX shock) is that they hold too many unnecessary positions at the same interval (e.g., every 20 pips).

In contrast, Lotus uses a unique geometric logic that expands the distance to the next order as the situation becomes more precarious (escape).

Please see the simulation table below.

※ This is the dedicated optimization setting for the first release, the AUDJPY (5-minute chart).

? Averaging progression simulation (AUDJPY, M5)

[Settings: distance 2.0x / lot 1.6x / start 0.01 lot]

? This is the biggest point to “protect your funds”!

① Expand the distance significantly, while keeping the increase in lots mild

In the AUDJPY setting, the distance to the next order expands from 30 to 60 to 120 pips, doubling each step.

However, the lot size is not doubled all at once, but restrained at a mild 1.6x multiplier.

This results in an ideal contrarian trade: during a sharp drop, you largely avoid positions, and around the bottom you enter a moderate lot to seek a rebound.

② Calm even in a major crash (around 5 yen)

For example, if there were a historic crash dropping 4 yen (400 pips) within a few hours.

• Typical EA: keeps averaging every 20 pips, holding as many as 20 positions, and bankrupts the account in an instant.

• In Lotus: as shown in the table above, even with a 400 pips drop, you hold only about 4 positions. Minimize capital damage and, once the market stabilizes and rebounds a little, quickly convert to profit and close.

⚠️ 【Important】 Complete optimization per currency pair

The above figures of distance 2.0x and lot 1.6x are derived as the safest and most profitable solution after thorough analysis of AUDJPY historical data. This is not fixed for all currency pairs.

In future updates adding EURUSD, USDJPY, etc., using the same settings across currencies with differing volatility is extremely dangerous.

For the Lotus project, each additional currency pair will undergo backtests of more than 15 years.

We will embed the currency-pair-specific optimal parameters (distance, lot multiplier, etc.) into the internal logic and release accordingly, e.g., widening averaging for GOLD, lowering lot multiplier for EURUSD.

What you need to do is set the EA on the chart. The development team will handle all complex parameter adjustments to continually provide the best portfolio.