Cloud-Color Trend Signals with Loss-Triggered Position Sizing

Summary

This expert-advisor strategy enters trades when a bar closes and the Open Oscillator Cloud changes color, which the document treats as a trend change. It adjusts trade volume according to recent outcomes in each direction: after a specified run of losing trades, the next position uses a smaller size; otherwise, it uses the normal size. The example settings reduce the volume after two consecutive losses in that direction, from 0.1 lot to 0.01 lot.

The document says tests were run on AUDUSD at the two-hour timeframe for 2017 and refers to a chart, but provides no numerical performance results or discussion of risk-adjusted returns. It also notes that the compiled indicator must be installed in the trading platform’s indicators folder for the advisor to work. The description does not establish that the sizing rule improves performance, explain stop behavior in detail, or show results across other markets or periods.

Key ideas

• The strategy opens trades when a bar closes and the cloud changes color.
• Recent losses are tracked separately for buy and sell trades.
• After the configured number of losses in one direction, the next trade in that direction uses a reduced volume.
• The document mentions a 2017 AUDUSD two-hour test but gives no numerical performance evidence.

Tags

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