When we make a trading system, we think about the rules to open and close.
However, if we would like to accumulate orders in our strategy, how would we do it? In this article, we would easily explain it to you.
First, you must have clear that if you want to accumulate new orders you must configure is a new entry rule.
To do so, we must have our first rule clear, with the conditioning of initiating the cycle. For example, we could use RSI as the linked element in the entry rule specifically when RSI is oversold then we open a buy.
We will make the configuration for this rule only for buys, moreover, we will not allow that new order is opened from that rule. That is, we will wait until there is no other open rule to validate a new entry.
We already have our first entry rule. This will be the main rule to initiate the orders opening.
Now we go to the second entry rule, in which we are going to define the opening of new rules to accumulate orders. For doing so, we will click on add a new rule. The conditions of the rules will simply be based on the number of opened operations.
For example, we are going to set the robot so that this rule of opening orders happen when the number of orders is between 1 and 10 operations.
For that, we will use two order account elements: in one we say as long as there is at least 1 order open, and in the other, we require as long as there are less than 10 orders open.
Finally, we could not forget to allow the same type of orders, because this order is going to open orders while there are other orders opened. That way, we will have our entry rules ready.
To finish defining any trading system we must tell the robot when it will close orders. The moment of configuring the exit rule has arrived.
In that case, we simply tell it when it achieves an accumulated benefit of 100€ (when all the orders achieve that quantity).
After setting this simple exit condition, we can validate the system. In this example, we will do it in the S&P500 in 1 hour timeframe.
We will focus on the backtest, that when once RSI gives an entry signal it will continue to open orders every hour, until getting the benefit objective and closing all.
We also see that the system limits the number of orders until 10, as it was configured that way.
I hope it was interesting. Here you have an explicative video of the example
Have a nice trading!