A 100-Day High-Low Reversal Trend-Following System

Summary

This description outlines an always-in-market reversal trend-following system implemented as an MT4 Expert Advisor. It holds either a long or short position: a close above the highest price of the prior 100 days triggers a long entry and closes a short, while a close below the lowest price triggers a short entry and closes a long. The approach aims to capture sustained moves by reversing when price breaks the opposite side of a rolling range.

The document recommends applying the system across varied markets so large trends may offset smaller losses, naming currencies, commodities, indexes, interest rates, government bonds, and sector stocks. It cites a historical Japanese yen trade by trend follower Bill Dunn as an illustration, but gives no detailed data, backtest, risk metrics, transaction-cost assumptions, or evidence of robustness. The claims therefore describe the system’s rationale rather than establishing its expected performance; results will depend on instrument choice and implementation.

Key ideas

• The system keeps a position open and switches direction when price breaks a rolling 100-day extreme.
• A close above the prior 100-day high signals long, while a close below the prior 100-day low signals short.
• The rationale is to capture large trends that can offset smaller losses.
• The author recommends applying the approach across multiple asset classes.
• The historical example is not accompanied by performance analysis or implementation caveats.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.