My software has automatically entered me into this trade. See notes on the chart. There is no trailing stop on this strategy so it either hits the original stop loss or hits the moving average and the trade is closed. Occasionally, if price consolidates for a while and the moving average moves higher, the price can be closed at the MA for a loss (although this is rare). As you can probably tell though, the longer the trade goes on, the closer the MA will get to the entry point. Therefore, we would prefer a quick reversal to maximise our returns.