I'm sure it will recover, its only 8% down on its starting equity.
The problem I've found from my experiments with martingale etc is that you make your best profits from shortterm negative positions but any sustained trend blows it up.
I recently setup a simple system with no entry criteria, running 1 long and 1 short and small ish lotsizes looking to getout for a profit, made 100% in 8trading days most of which were 4hr sessions. I knew it wouljd blow and wanted to see the kind of DD under normal operation, most of the time it was under 4% sometimes it was upto 10% and once it had a margin call ;)
The point... doesnt matter how much it makes and how often it makes it, it can only blow it once.
8% down from starting equity is a lot better than mine fared and yours can recover from it. ;)
Will i scrap martingale?..
nope. I will work out a way to protect what it makes so will you Ben.
Keep up the good work.