Independent Long and Short Trading Systems with Loss-Based Position Sizing

Summary

The document describes an Expert Advisor organized as separate long and short systems, each with its own entry and exit switches, settings, and trade identifier. It uses signals from the ColorSchaffJJRSXTrendCycle indicator and allows long and short parameters to differ, reflecting the possibility that rising and falling markets behave asymmetrically. The suggested setup process is to test each direction independently before enabling both.

Position size is adjusted according to recent results in that direction. The EA checks a configured number of recent trades and switches to a smaller volume when the configured count of losing trades is reached; otherwise it uses the normal volume. The text illustrates this with example settings and reports that the cited 2017 EURAUD eight-hour tests used default inputs without stop loss or take profit. No detailed performance statistics or risk-adjusted comparisons are provided, so the examples do not establish robustness. Operation also depends on the required indicator files being installed in the platform's indicator directory.

Key ideas

• Long and short trades are managed as separate systems with independent parameters and identifiers.
• The document recommends evaluating each directional system separately before running both.
• Position volume is reduced when recent losses meet a configured threshold.
• The cited test used EURAUD on an eight-hour chart in 2017 and omitted stop loss and take profit.
• The document provides no detailed evidence that the approach is robust across markets or periods.

Tags

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