Consecutive Bar Signals with Reversal and Risk-Based Stops

Summary

This strategy counts consecutive rising or falling closes and enters after configurable thresholds are reached. The defaults are three rising bars for a buy signal and four falling bars for a sell signal, with trading signals enabled only after the first 40 bars. Users can trade long, short, or both directions, reverse the signal interpretation, and choose whether an opposite signal can directly reverse an open position or must wait until flat.

Optional exits include strategy-defined stops, swing high/low stops with a percentage increment, or ATR-based stops; take-profit levels are derived using a configurable reward-to-risk multiple. A trailing-stop option is also indicated. The supplied document ends partway through the source, so the full exit implementation and behavior cannot be confirmed. It gives configuration choices but no backtest results, market context, or evidence that consecutive-bar patterns have predictive value after costs and slippage.

Key ideas

• The default signals follow three consecutive rising closes or four consecutive falling closes.
• Signal interpretation can be reversed, and allowed trade direction can be restricted to long or short.
• Direct position reversal is configurable, as is waiting for an open position to close before re-entry.
• Stop choices include strategy-based, swing-point, and ATR methods, with take profit tied to a reward-to-risk setting.
• The source is truncated and provides no performance evidence or market-specific evaluation.

Tags

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