Limit Drop Reversal

BVC-specific panic reversal strategy. Buys immediately when a stock crashes hard, is well below its recent high, and volume confirms real participation — no waiting for confirmation, since waiting means missing the bounce.

Validated edge with real tail risk: worst observed drawdown before recovery was -30.8%, taking 56 trading days. This is not a low-risk strategy — it requires capital you can hold through a deep drawdown while waiting for the bounce.

Crash trigger ≤

Discount from 60d high ≥

Volume ratio ≥

Recovery target %

Default values (-8% crash, 20% discount, 0.5x volume, +10% target) are the parameters validated earlier with an 83.3% win rate on SMI/MNG/CMT. Adjust and re-run to test other combos.