Candle Direction Strategy: Long on Up Bars, Short on Down Bars

Summary

This document describes a minimal bar-based strategy: go long when a candle closes above its open and short when it closes below its open. Position size and the backtest date range are configurable. The published backtest settings use BTC/USDT futures and a three-hour chart period, with fifteen-minute base data, but the document reports no performance results or comparison against a benchmark.

The approach treats each candle’s direction as a basic trend-following signal and requires no indicators. Its simplicity makes the rule easy to inspect, but the document acknowledges that candle direction alone may produce weak signals. It specifies no stop-loss or take-profit rules and gives no parameter optimization or evidence of stability across markets or periods. The published date filter uses a configurable cutoff, while the settings cover a short historical interval; these details do not establish the strategy’s broader effectiveness.

Key ideas

• A close above the open triggers a long entry, while a close below the open triggers a short entry.
• Position size and the backtest date cutoff can be configured.
• The strategy uses candle direction alone and does not require technical indicators.
• The document provides no performance results and flags weak signals, missing exit rules, and lack of parameter tuning.

Tags

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