Partial Position Closing and Adaptive Lot Variation for Trading Systems

Summary

The article presents several nonstandard techniques for automated trading, including partial position closing based on the previous candle’s movement. A power function maps the size of that movement to the volume closed, with adjustable parameters controlling the closing rate. The author argues that stronger short-term impulses may be followed by larger retracements, so closing more during those moves could capture gains or reduce losses. The article also discusses lot variation, averaging, evidence of strategy consistency, and analysis of balance and equity waves.

The examples use MetaTrader expert advisors and include a random-entry demonstration with a narrow spread. The author reports only a slight favorable shift in one performance measure for a modified test, and cautions that this is illustrative rather than proof of profitability. The techniques are described as tools for further study, not standalone trading systems; their effectiveness depends on market, instrument, settings, and a sound entry signal.

Key ideas

• A power function can scale the partial close volume according to the previous candle’s movement.
• The proposed closing method assumes stronger short-duration impulses are more likely to precede substantial retracements.
• The function’s parameters let a researcher vary the response from sublinear to linear or superlinear.
• The article also considers lot variation, averaging, strategy consistency, and balance or equity patterns.
• The example tests are illustrative and do not establish that the methods will be profitable in live trading.

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