Selling After Consecutive Large Positive Price Changes

Summary

GAVAD measures the percentage change from the prior close to the current close and scales it by an adjustable multiplier. It plots this measure against a signal threshold and marks a strong signal when the threshold is met on two consecutive bars. The strategy assigns that condition to a sell signal, aiming to sell after a sharp upward move.

The script also contains calendar and intraday time inputs for controlling when trading may begin and end. The provided excerpt cuts off before the full operating conditions and order logic, so it does not establish how entries are executed, how positions are exited, or whether position sizing and loss controls are present. Although the document includes a strategy script and an initial-capital setting, it supplies no backtest period details or performance results. The threshold and multiplier are adjustable, and the signal’s usefulness may vary with instrument, bar interval, and market regime; the excerpt does not provide evidence for profitability.

Key ideas

• The indicator scales the close-to-close price change by a configurable multiplier.
• A sell signal is generated when the scaled change meets its threshold on consecutive bars.
• Calendar and intraday time inputs are present to constrain the trading window.
• The excerpt omits the remaining order logic, so exits and risk controls cannot be evaluated.
• No backtest performance evidence is included.

Tags

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