A Bar-Count Rule for Simple Trend-Following Trades

Summary

This brief description outlines an expert adviser that evaluates price bars only when a new bar appears and maintains at most one open position. It can therefore operate on either netting or hedging accounts. Its entry rule counts consecutive bullish or bearish bars, using user-set counts to decide when to open a position in the corresponding direction.

The same directional signal closes the opposite position: a buy signal closes a sell, and a sell signal closes a buy. The adviser can be restricted to buying or selling alone; in that case, a run of bars in the other direction can still act as an exit signal. The underlying premise is that consecutive bars of the same direction may indicate trend continuation. The description provides no backtest, performance evidence, risk controls, or guidance on choosing the bar counts, so it explains the rule but does not establish its profitability or robustness.

Key ideas

• The adviser checks for signals only at the start of a new bar.
• It uses configurable runs of bullish or bearish bars to trigger entries.
• A signal in one direction also closes an existing position in the other direction.
• The adviser allows at most one open position and supports netting or hedging accounts.
• Consecutive bars are treated as a possible sign of trend continuation, without performance evidence in the description.

Tags

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