Daily Index

Requirements Specification examples

1. The idea of the trading system is as follows: market entries are performed when at a specific time (13:30 CET) a trend is established and if there is trend strength in the market

2. Trend is determined based on the simple moving average of 10 periods. If the price at 13:30 on the 30 Minutes chart is above the MA it is a long trend, if the price is below 10 periods MA then a short trend is established.

3. Trend Strength is determined based on the ADX Indikator. If the ADX indicator shows at the same time a value >25 it there is a strong trend in the market.

4. Trading Signals:

• Buy signal: at 13:30 in the M30 chart there is an up trend (MA(10)< Price) and the trend shows strength (ADX(14)>25)
• Sell signal: at 13:30 in the M30 chart there is a down trend (MA(10)> Price) and the trend shows strength (ADX(14)>25)
  
  

4. Positions are closed 

·         time based exit  - must be specified in the settings of the EA (Standard is 21:30:00 CET)

·         Take Profit can be set in ticks by the settings window of the EA but is by default not activated.

·         SL can be set in ticks by the settings window of the EA but is by default not activated.

5. Positions are opened a signal short or long at 13:30 CET is given

6. Additional filters for opening a position:

• no additional filters

7. Additional filters for closing a position:

• n/a

8. Close by Take Profit — only if activated and the value of ticks are entered in the settings.

9. Position management

TrailngStop can be used to protect profit. There should be the possibility that a stop order can be set when 50% of the specified TP value is reached.

E.G. TP is set to 12 points then the EA is supposed to set a stop order at BreakEven plus 1 Pip when the market reached 6 Pips of profit.

Standard in the EA should be that this option is deactivated.

10. Process of trading

EA checks at 13:30 if a signal is given. If a signal is given an order will be placed in the direction of the signal. If there is no signal no trade will be placed and EA sleeps until the next day.

The position size of the trade must be maintained in the settings field of the EA.

EA Settings in the window needed:

MA Period: Default Value 10

ADX Period: Default Value 14

ADX Level: default Value: 25

Entry Time: Default Value 13:30 CET

Stop Loss Activation: Boolean with default false

Stop Loss in Ticks: default Value [empty]

Take Profit Activation: Boolean with default false

Take Profit in Ticks: default Value [empty]

BE Function Activation: Boolean Value with default false

BE at: in pips default Value [empty]