Hedged Trailing-Stop Strategy with Progressive Position Sizing

Summary

This expert advisor begins by opening opposing positions with the same initial lot size, each protected by a stop loss and managed with trailing-stop settings rather than a take-profit target. The author’s logic treats a losing stop-out as evidence of a trend reversal and opens an enlarged position in the opposite direction. It then adds positions in that direction when price moves a specified distance against the least losing position.

A profitable stop-out is instead interpreted as a rebound within the existing direction, prompting a larger position in the direction of the closed trade. Trailing stops are applied again, so subsequent closures repeat one of these two paths. The inputs include initial size, lot increments, stop and trailing distances, and spacing parameters. This is a rules description only: it provides no backtest results or risk limits. Increasing exposure after stop-outs can build a concentrated position if the directional assumptions are wrong.

Key ideas

• The advisor opens an initial pair of opposing positions with stop losses and no take-profit target.
• Trailing stops move through break-even and aim to secure gains as price advances.
• A losing stop-out triggers an increased position in the opposite direction.
• A profitable stop-out triggers an increased position in the same direction as the closed trade.
• The document supplies no performance evidence or explicit cap on cumulative exposure.

Tags

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