Alternating Trades with Fixed Profit and Loss Thresholds

Summary

The document describes a simple trading cycle that opens a position and closes it when price moves a preset distance favorably or unfavorably. After a losing move, it reverses direction and opens a position in the opposite direction; after a profitable exit, it repeats the cycle. The example uses a small fixed lot and gives illustrative point distances for the profit and loss exits.

This is a rule description rather than a performance study. It provides no market, timeframe, backtest, or evidence that the thresholds produce an advantage. Results would depend on instrument behavior, transaction costs, and how the point distances are chosen. The alternating entries can also realize repeated losses in choppy conditions, while fixed distances may behave differently across volatility regimes. The text attributes the idea to a forum description and offers no additional risk controls or evaluation method.

Key ideas

• The system opens a position and exits it after a preset favorable or adverse price move.
• After an adverse exit, it opens a trade in the opposite direction.
• After a profitable exit, it repeats the cycle in the same direction.
• The document supplies an example rule but no performance evidence or parameter-selection method.

Tags

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