This expert has extended features relative to the previous. Please examine the previous one before proceeding. Periodic Range Breakout 1.0
[WARNING]
- The main purpose of this purely mechanical expert is to make use of statistical and analytical observations to gain insight into how markets work.
- Using it for trading could result in financial loss.
[MAIN IDEA]
- At the beginning of the period, we'll take the current value of the time-dependent variable which in case ask price of an fx instrument as a reference.
- Then performing addition and subtraction on this value by user-specified range to obtain high and low breakout levels.
- If price breaks high level upward buy-stop or sell-limit order will get opened.
- If price breaks low level downward buy-limit or sell-stop order will get opened.
- Take-Profit and Stop-Loss levels are determined by taking specific portion of the range in pips.
- If trade ends with loss, it will get compensate it in the next trade if requested by user by incrementing volume or take-profit level as set.
[MAIN FEATURES]
PERIODICITY MODES
Weekly: take close price of a specific hour of a day of week as reference.
Daily: take close price of a specific hour of any day as reference.
NonStop: take current price immediately as reference, if there isn't any trade opened.
RANGE CALCULATION MODES
ATR: user-specified percentage of ATR(20).
Percent: user-specified percentage of current price.
Fixed: constant user-specified pips.
TRADE MODES
Stop: if high breaks open buy, if low breaks open sell.
Limit: if high breaks open sell, if low breaks open buy.
Random: randomly select orders. doesn't work in tester mode.
TRADE PARAMETERS
Range Percentage: percentage of calculated range used to evaluate take-profit and stop-loss.
Take-Profit Percentage: take-profit in pips as percentage of derived range.
Stop-Loss Percentage: stop-loss in pips as percentage of derived range.
LOT MANAGEMENT MODES
Constant: never increment volume after loss.
Linear: multiply volume by linearly incremented coefficients after loss. (1, 2, 3, 4, ...)
Martingale: multiply volume by a number between 1 and 2 after loss.
Fibonacci: increment volume as fibonacci sequence after loss. (1, 1, 2, 3, 5, 8, ...)
OTHER MONEY MANAGEMENT PARAMETERS
Margin Percentage: how much of free margin will be used in trade initally or trade after winning trade.
Lot Multiplier: multiplier used in martingale mode.
Range Multiplier: multiplier used to increment take profit level after each loss. this was based on an assumption that previous loss increases the interval of success.
[OBSERVATIONS]
- Profit and Loss counts are highly dependent on the selection of take-profit and stop-loss ratios. if these ratios converges counts are converges also and vice versa.
- Lower take-profit ratio relative to stop-loss increases chance of success in short term, but rare cases like consecutive losses greater than expected crashes equity. randomizing will reduce the probability of encountering these types of risk.