Trade logic goal ⇒ clear trend-following method for exit point
「Make a big gain in a trending market.」In creating this, the objective was, as the name suggests, to hold positions from the initial move of a trend to its end.
The entry point determination, as a method, is close to a breakout technique I think.
Previously, the trend-following methods I knew had relatively clear entry points, but the exit points were vague. This is probably because while a trend is extending, you can tell it’s extending, but you can’t clearly decide what constitutes its end. There is no single correct way to trade, so if someone says you don’t need to decide clearly and can make decisions by combining various conditions, that is true; and if someone says there are many ways such as taking only one-third profit when certain conditions are met, there’s nothing more to say except that’s true as well.
However, tolerating such vagueness would prevent it from becoming a program, so I hoped for a method that could define exit points clearly. Then, one morning it occurred to me. A chart with a time-based analysis combined with a conventional line appeared in my mind. Thus, based on this novel technical concept, a method was born in which both entry and exit points could be defined clearly. I started coding that day and had it built in two days. When I applied it to past GBP/USD price data and displayed trading signals, the trades were exactly as intended. There are two parameters, but both turned out to be the values I initially expected. With this, I knew it would work, so I prepared a manual including a detailed LOGIC explanation and more.
