I have identified a pattern in different assets where a quick spike/flash crash often occurs, dropping the price between -5% and -15% for a few seconds and then going back to previous average.
I am considering setting up buy orders but I do have limited funds. My first instinct was to separate equally my funds in 3 orders: a buy at -5% of price, -10% and -15%.
But then I realized that if most spikes are at -5%, I should have more funds over there. Basically the theory is this: -15% spikes should happen less often, but will yield the most profits. -5% should happen more often but will yield less profits. Technically the -5% spikes should happen three times more often than the -15% to have similar profit if I put all my funds in either case.
Is there a statistical way of separating my buy orders and funds to maximize profits?