It's more about entering extra trades when spike continues and there are some trades already open. If spike goes on and on it will create more loss, but in most cases it will let you win back some from these first initial trades. If spike reverses fast MDP will not enter much of the extra trades. This is from my experience.
Also it works together with max orders settings. And it might be dangerous as it slows down execution and modification of opened trades and in result when in a bad trade MDP might not be able to adjust SL fast enough which will lead to extended losses.
I personally use channels set to 1 which is default. When I used 4 it was taking too much risky trades and lose even when others won.
Was mich nicht umbringt, macht mich stärker.