Profit-Funded Level Shedding (a FOX research concept)

The idea

In a grid basket the earliest positions usually carry the largest floating loss. The concept researches a rule: when other positions take profit, part of that profit goes towards closing (fully or partly) the most losing levels — "shedding" a level, funded by profit.

What should improve (hypothesis)

• A smaller total basket volume in a prolonged move — lower margin requirements.
• A slower-growing floating loss and a more distant Stop Out.

The trade-off

• Profit used for shedding does not reach the balance — the final return may be lower.
• A level closed at a loss locks in a real loss that a price reversal might have recovered.
• The effect depends heavily on costs and the execution model.

How we check it

A comparison with the same strategy without shedding: maximum equity drawdown, minimum Margin Level, the number of near-Stop-Out episodes and the final result — on real ticks and on a forward period.