A Pullback Entry System with Tight Stop Loss and Take Profit

Summary

This document describes an automated system intended to identify a directional price move, wait for a retracement, and then enter a trade. Positions are closed by either a stop loss or take profit, both set relatively close to the entry so the system can seek small gains from modest price changes. Its stated operating preference is roughly one or two trades per day rather than rapid-fire scalping.

The described EA is designed for EUR/USD on an hourly chart and exposes parameters for the bars used to assess movement, a momentum threshold, pullback size, stop and target distances, position size, and the maximum number of concurrent trades. Because it analyzes price movement within a bar, the document specifies real tick based testing. It offers no backtest results or evidence that the approach is profitable, and it leaves the exact momentum and retracement definitions open to experimentation. Tight exits and the small stated profit objective also make transaction costs and execution quality relevant limitations.

Key ideas

• The system first identifies a price move and enters after a pullback of a configured size.
• Trades exit at a preset stop loss or take profit, with both levels intended to be tight.
• The example targets EUR/USD on an hourly chart and is designed for about one or two trades daily.
• The EA's inputs control momentum detection, pullback size, position size, and concurrent trade limits.
• Testing should use real tick data because the system evaluates price movement inside each bar.

Tags

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