What is the CHV System?
The CHV CoinM is a structured hedging strategy built around a simple mathematical truth: if you know exactly how far price needs to move to hit your target, and you scale positions precisely, every cycle is guaranteed to recover — regardless of how many times price reverses.
Most trading systems treat a stop-loss as a finalized loss. CHV treats it as an inversion signal — the moment price exits the bracket in the wrong direction, the position is flipped rather than closed.
The Price Bracket
Every CHV cycle is anchored to four price levels derived from the current price and ATR:
| Level | Name | Role |
|---|---|---|
| TL | Take Long | Long take-profit — price rises here to close a winning long |
| LP | Long Price | Long entry — initial long position opened here |
| SP | Short Price | Short entry / long stop-loss — crossing here triggers inversion |
| TS | Take Short | Short take-profit — price falls here to close a winning short |
TL ───────────────────── ← Long TP ( LP + d )
LP ───────────────────── ← Long entry / Short SL
SP ───────────────────── ← Short entry / Long SL ( LP − c )
TS ───────────────────── ← Short TP ( SP − d )The bracket is symmetrical — c is the risk distance, d is the reward distance.
The Formula
Bracket Sizing
c = (ATR × efficiency_buffer) / 3.0
d = reward_ratio × c
LP = entry_price
SP = LP − c
TL = LP + d
TS = SP − d
c — the cut-loss zone: width of one adverse move
d — the recovery target: distance to take-profit
Ratio 2.0 = mathematical breakeven (zero fees)
Ratio 2.5+ = profit margin built in above breakeven
Lot Scaling on Inversion
1st inversion: lots = base × 0.5
2nd inversion: lots = prev × 1.5
3rd inversion: lots = prev × 1.5
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This is not a tuned parameter — it is the exact multiplier derived from the requirement that TP profit covers all accumulated losses plus the original target profit d.
Solving gives x = 1.5 and first inversion factor x − 1 = 0.5.
What Makes CHV Different
🔄 No Realized Losses
Traditional systems close losing positions. CHV inverts them. Every SL is an open hedge — the loss is unrealized until the TP recovers it, with profit.
📐 Guaranteed Recovery
The lot formula is derived, not tuned. As long as capital survives to the next TP, the cycle nets positive — not by luck, but by arithmetic.
📊 ATR-Adaptive Bracket
Bracket width scales with real volatility. Calm market = tight bracket. Volatile market = wider bracket. Structure stays proportional to actual price behaviour.
↕️ Directional Neutrality
Works identically long and short. Direction follows the market — after a long TP the next cycle opens long; after a short TP, opens short.
⚖️ Single Risk Variable
The only thing that ends a cycle badly is running out of capital to fund the next inversion. Direction, whipsaw count, and duration are all handled by the math.
🛡️ Bounded Risk Option
The optional whipsaw limit lets you cap exposure. Instead of risking a margin blowout, you take a controlled loss and re-enter on the next signal.