Adaptive Position Sizing for JFatlCandle Trend Signals

Summary

This Expert Advisor follows trend changes signaled by the JFatlCandle indicator. It acts after a bar closes and identifies a new direction when the candle color changes. Position size is adjusted using recent trade outcomes, with separate settings for buys and sells, including the number of trades examined, the loss threshold, and normal and reduced volume levels.

In the example, the EA uses the smaller lot size when three or more of the most recent five trades in the same direction were losses; otherwise, it uses the normal size. The document also reports a USDJPY H12 test for 2017 and says it used default EA inputs without stops, but it provides no numerical performance statistics in the text. The approach depends on the indicator’s signals and a short record of prior trades; the example does not establish that the sizing rule improves returns or controls risk across other periods or markets. It also requires the compiled indicator files to run.

Key ideas

• The EA opens trades when a closed bar signals a JFatlCandle trend change.
• Buy and sell position sizes are assessed separately using recent trades in that direction.
• A sufficiently high count of recent losses reduces the next trade to the smaller configured lot size.
• The document describes a 2017 USDJPY H12 test but gives no performance figures in the text.

Tags

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