Alternating Buy and Sell Orders with Loss-Triggered Take-Profit Scaling

Summary

The document describes an automated strategy that alternates between buy and sell orders. Each order has a take-profit and stop-loss level; when a position closes, the system opens an order in the opposite direction. If an order exits at its stop loss, the next order’s take-profit distance is increased by multiplying the previous take-profit by a coefficient.

No coefficient value, position-sizing rule, instrument, performance record, or backtest is supplied. The description therefore explains the order sequence and one adjustment rule but does not establish profitability or quantify the risks of repeated stop-outs and larger profit targets.

Key ideas

• The strategy opens a buy order with both take-profit and stop-loss levels.
• After the buy closes, it opens a sell order, and continues alternating direction.
• A stop-loss exit causes the next order’s take-profit to be scaled by a coefficient.
• The document gives no parameter values or performance evidence.

Tags

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