Trading Against Consecutive Price Moves with Fixed Entry and Exit Rules

Summary

This strategy takes a contrarian position after a configurable run of consecutive rising or falling closes. After enough down bars, it places a long stop entry above the bar’s high; after enough up bars, it places a short stop entry near the bar’s low. Inputs also cover a backtest date range, a daily entry window, alert messages, and optional fixed tick-based profit and loss exits. The supplied settings use a one-bar trigger in each direction, though the document does not establish that this is effective.

The published example is configured for Bitcoin futures on 45-minute bars over a short date span, with five-minute base data, but gives no results or performance metrics. The accompanying discussion presents reversal capture as the rationale and warns that unclear reversals, news events, frequent trading, and backtest overfitting can hurt performance. It suggests trend and volume filters, adaptive stops, and multi-market diversification as possible extensions, without evidence that these changes improve results. The source also hardcodes some time conditions as always true, so described date and session controls may not operate as their labels imply.

Key ideas

• A run of rising or falling closes triggers a stop entry in the opposite direction.
• The example exposes configurable run lengths, entry times, alerts, and optional fixed tick exits.
• The published backtest setup contains no reported performance evidence.
• News, weak reversals, frequent signals, and overfitting are listed as risks.
• The source hardcodes time filters as always active, limiting the reliability of some documented controls.

Tags

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