ColorMaRsi Signal Trading with Loss-Based Position Sizing

Summary

This expert advisor runs separate long and short systems using signals from the ColorMaRsi-Trigger indicator. The two directions can be configured independently, including how trade volume is set and how recent trade outcomes affect the next position. When a chosen number of recent trades in one direction contains at least a specified number of losses, the next trade in that direction uses a reduced volume; otherwise it uses the normal volume. The example settings describe checking five trades and reducing size after three losses, with separate values for buy and sell trades.

The document reports a historical test on AUDUSD at the six-hour timeframe over 2016, using default advisor settings and no stop loss or take profit. It refers to a chart of test results but gives no numerical performance measures or detailed evaluation. The approach is a basic outcome-based position-sizing rule, not evidence that the signal or sizing method is profitable. It depends on the specified indicator being available and provides no discussion of drawdowns, transaction costs, or robustness across other markets and periods.

Key ideas

• The advisor operates separate long and short strategies based on ColorMaRsi-Trigger signals.
• Recent losing trades in a direction can trigger lower volume on the next trade in that direction.
• Buy and sell sizing thresholds and volume settings can be configured independently.
• The cited AUDUSD historical test omits stop loss and take profit and 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.