The trading technique starts as follow: EA sells at random.
STEP 1: (A) sell 1/1000 of equity size with instant execution with a stop loss of 75 pips and a take profit of 45 pips
(B) simultaneouslty place a stop buy 25 point above original entry point wiht a size of 2/1000 of equity with stop loss of 75 pips and take profit of 45 pips
IF market moves up and the stop buy is executed a stop sell (C) with size of 3/1000 will be trigerred with same entry, SL and TP number of the main trade in STEP 1(A).
If the market continues to move up and reaches the limits set in Step 1(B) the stop sell in (C) will be removed and the EA will start again in from (A).
If the market falls back down and activates the stop sell in C a new stop buy with size 8/1000 will be placed with same entry, Sl and TP levels in (B)
The EA will continue stacking the trades until the market moves in direction or another and reaches the take profit and stop losses. in that case all pending orders will be cancelled and the EA will start again from the begining
NB. size of trades increases in a fashion that the pending order with existing orders will be twice as big as the open interest. i.e in trade (a) sell 0.1 the stop buy will be 0.2, the following stop sell needs to make the sell position the double of 0.2 hence the size must be 0.3 (0.1+0.3)=0.4 on the sell side
I am attaching an excel sheet with numbers and colors to better explain the idea
Hello - Kindly check my massage on the PMB and keep me posted on your findings. Best regards. Jack-.