Color-Change Signals with Loss-Triggered Position Reduction
Summary
The document describes an Expert Advisor that runs two independent systems based on the Skyscraper_Fix and ColorAML indicators. Each system generates a signal when a bar closes and its indicator changes color to show a trend change. Their trade volumes are managed separately according to recent losses in the same direction: after a configurable number of losing trades, the next trade uses a smaller volume; otherwise, it uses the normal volume.
The example settings illustrate this reduction after two consecutive directional losses, while the document also specifies the indicator files needed by the EA. It says default EA inputs were used in tests on GBPJPY at the four-hour interval over 2016, with no stop loss or take profit. Although it refers to test charts, it supplies no numerical performance results or risk metrics in the text. The examples therefore do not establish profitability, and the loss-based sizing rule does not itself cap cumulative losses.
Key ideas
- Two separate trading systems use color changes in different indicators to signal trend changes at bar close.
- Each system adjusts trade volume independently based on recent losing trades in the same direction.
- The example reduces volume after two losses and otherwise uses the normal setting.
- The cited GBPJPY test omits stop loss and take profit, and the text provides no numerical performance metrics.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.