EAdventure

1. The Reverse Labouchere method for casino, at roulette.

• define a serie of number, for eg 1,2,3,4
• Chose a color, for eg red
• Define a maximum for betting, for eg 200 units
• Always bet on red
• You bet the sum of the last two figures of your serie
• If you win, you add the last bet at the end of the serie 
• If you loose, you remove the first and last figure of the serie.
• You stop the betting sequence either by reaching the max bet or if you have less than 2 figures in your serie.

Let’s illustrate

1,2,3,4

• you bet 5 and you lose

2,3

• you bet 5 and you win

2,3,5

• you bet 7 and you win

2,3,5,7

• you bet 9 and you lose

3,5

• you bet 8 and you win

3,5,8

Etc

At a certain point, the sum of the first and last number of the serie will be above 200. You stop betting and start again with the initial serie.

Ath the end of a lost betting sequence, you have lost a bit more than the sum of the initial serie. 

You will very often loose but when you win, you win a lot. Not only your 200 units but also all the previous winning bet of the sequence.

The idea of this method is to loose a bit in a normal distribution of red and black, but when there is a strong trend on red, win a lot to compensate the losses.

The advantage of this method is that you bet with the money you just won so you do not need to have a big initial capital.

Of course this does not work in casino because of the house advantage but give interesting results with trends. I would like to adapt this to an EA.

1. EA organisation

• Parameters
• Selection of the order
• The Labouchere reverse use

• Parameters

• The initial serie. I need to be able to chose the figures, and the length of the serie. The figures will be lot’s size. 
• The maximum size of the order. The EA will stop if the sum of the first and last figure of the serie is above this max size, and restart with the initial serie.

• Selection of the order

When i launch the EA, I want to chose if my EA will always buy/sell, or if it will use conditions to open trades.

The conditions will be conditions I will setup myself.

I will try easy things like buy when the short-term EMA (9-period) to cross above the long-term EMA (21-period) and sell when cross below. You will set up this in the EA, and I might modify this part later.

If I choose to select « conditions », then all the trades will be in the same Labouchere serie, wether they are buy or sell orders.

If I choose my EA to always buy/sell, then 2 sequences of reverse Labouchere will be set up at the same time. One sequence where the orders will always be buy. And one always sell. And so as soon as for eg a buy reach his tp or sl, a new buy order is immediately placed. So I will always have 2 trades open.

• The Labouchere reverse use

The orders needs to follow the Labouchere reverse system.

As we want to work as in casinos roulette with bet on red or black, the take profit will be define to double the amount of the order and the stop loss to lose the amount of the order.

I would like to avoid outliers. I do not know the best method to filter these points. But you will have to use the one you consider as best.

I do not know much in EA so please add the securities to make it safe and robust.

I think that is all here. Please let me know if you find some inconsistencies in my idea, and do not hesitate if you have question or if there are things i di not thought about.