Volume-Modulo Entries with Profit and Loss Thresholds

Summary

The document describes a simple entry rule that uses candle volume modulo a chosen integer to select a long or short signal. With the example integer of 6, the resulting values are divided into two groups: one for longs and one for shorts. A position is opened only when no position is active, then closed when its stated stop-loss or take-profit threshold is reached. The published parameters give a -5% stop and a 15% target, and the backtest settings identify BTC/USDT futures over a stated date range.

The document claims that repeated random entries and the law of large numbers produce long-run profits, but it provides no performance results or statistical argument to support that claim. Volume modulo an integer is deterministic and is not necessarily uniformly random. There are also differences between the description and the included source: the code opens only long positions, despite the stated long/short split. Thresholds, trading costs, and market conditions can materially affect results, so the claimed profitability should not be treated as established evidence.

Key ideas

• The entry signal is generated by taking candle volume modulo a configurable integer.
• The description assigns half of the possible remainders to long entries and half to short entries.
• Positions are described as closing after a preset loss or profit threshold is reached.
• The document's long-run profitability claim is unsupported by reported results, and the code does not implement its described short entries.

Tags

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