Trading After Consecutive Candles with Direction and Risk Controls

Summary

This strategy waits for a configurable run of bullish or bearish candles, then opens a position at the next candle. A direction setting chooses whether the position follows the run or trades against it. The described controls include position size, stop loss, take profit, the required candle count, and an option governing whether orders may be added. Examples explain both a countertrend setup after seven consecutive candles and a trend-following setup after three; the accompanying ProRealTime code detects candle runs and places orders with point-based stops and targets.

The document frames the implementation as an educational sandbox for studying settings on different instruments and timeframes, rather than as a generally suitable strategy. It supplies no performance results or test methodology, and says there is no standard parameter set. Candle runs alone may behave differently across markets and sampling intervals; the note does not discuss transaction costs, slippage, or position-level risk beyond the basic stop and target controls. The code and examples therefore describe mechanics, not evidence of an edge.

Key ideas

• A trade is triggered after a specified number of consecutive candles close in the same direction.
• The direction setting selects either trend-following or countertrend entries.
• Position size, stop loss, take profit, candle count, and order accumulation are configurable.
• The examples illustrate both following and reversing a candle run.
• The strategy is presented for experimentation, with no universal settings or performance evidence.

Tags

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