Active Trader Trading System Labs: 2007

Exiting after a certain number of profitable closes is a time-based technique designed to take profits when a market is still moving in your direction rather than waiting until it moves against you. However, a weakness of this technique is that by factoring out price action, it does not adapt to changing market conditions.

The long-only test system will combine simple trend and countertrend entry rules, each of which will be exited after different numbers of profitable closes. The trend entry will be exited after 20 bars (days) in the trade, while the countertrend trade will be closed only after eight bars (days).