DCA EA

DCA EA by Trail Results

Please Fully Read and ask questions to insure you can do this job.

Overview

Looking to have an EA that will operate similar to a grid EA with a few differences. The EA will subtract the “current market price” from the “lowest market price”(from the chart) or the “lowest price” that we input. We then take that difference and divide it into equal parts that we specify in the inputs. Once the EA takes profit it will reset using the new “current market price”, and start the process over again. 

Dividing up the trades

The math to divide up the trades is taking the “current market price” and the “lowest market price” and dividing it by a number we input + the “lowest market price” or whatever we input as the “lowest market price”. So if the current market price is 200 and the lowest is 5 and we input to divide the trades by 4, it’ll be 200-5=195 then 195/4=48.5 so a new trade will enter every 48.5 as it goes down until it reaches 5 and 5 is where the 1 additional trade will be added. So it'll actually place 5 trades in this scenario even though the input was set to only divided by 4. It’ll work the same way no matter how many we order we divide into. It'll always add the all time low or lowest price input as an additional trade.

Scaling into trades

As the market price goes lower it enters the new trades which will change the cost basis or average price for that position. The take profit will adjust with the new cost basis also. For example: If the starting market price was at 100 and the lowest market price was 1, we then divide it into 4 parts,(4 parts including 1 for the lowest price we input) so it will place new trades every 24.75 pips((100-1)/4). So the first trade will be at 100, second trade at 75.25, 3rd trade at 50.50, 4th trade at 25.75, and 5th trade at 1. Let's say it goes down to 1 and the lot size is the 1 for each level. The cost bases would be 50.5((100+75.25+50.50+25.75+1) / 5). So the take profit % we input would be based on the new cost basis or average. Let's say the take profit % is 100%, the EA would close all the trades at 101(50.5+50.5) and restart the EA using 101 as the new market price.

Dynamic lots

Taking the current market price and subtracting it from the lowest market price either from the chart or one we specify in the inputs. Then dividing it by the “Divide Trades input”. Then take that answer and subtract it from the market price the same number of times you previously divided by. Now take those figures and divide them all by the "divided risk amount" to get the Dynamic Lot size for each trade as the market price goes down.  

So here's a example

• Current market Price on the chart: 225

• Lower price on the chart: 4

• Divide high and low difference by: 4

• Divide Risk amount per Sequence by: 5 (Will always be 1 more than the “Divide high and low difference by X” input above)

• Amount to risk per sequence: $1000

So well have: 

225-4=221 then 221/4=55.25 now 221, 221-55.25=165.75, 165.75-55.25=110.5, 110.5-55.25=55.25

Now $1000/5=$200 so we have:

$200/221=.90 lots for trade 1, $200/165.75=1.21 lots for trade 2, $200/110.5=1.81 lots for trade 3..., $200/55.25=3.62 lots for trade 4 and $200/4=50 lots for trade 5 to finish that sequence.

A Sequence is when one set of orders is running. For the example above that would be 5 trades for that sequence starting at the 225 price. We would like the ability to  push a button on the charts that'll add additional sequences to the same pair, independent from the first sequence that was already entered. So using the example from above, well have 1 set of 5 trades running, then another set of 5 trades can start running at another starting price and so on. The only thing that all the sequences have in common is the averaging cost basis and take profit level if it is the same pair. So multiple sequences on the same pair will all work together to lower the cost bases and will all take profit at the same time.

Pending orders in the sequence

Once an initial trade is entered, the pending orders should only appear 1 at a time. So if there are 5 orders for a sequence, once the first trade has entered the market the 2nd trade should appear as a pending order, and once the second trade level is hit, the 3rd pending order should appear and so on.

INPUTS

• Current market price - If 0 use the current market price

• Lowest market price - If 0 use the lowest price on the chart

• Divide high and low difference by: X

• Use % of equity to trade per sequence: (true or false)

• % of equity to trade per sequence: X

• Use $ amount to be risked per sequence: (true or false)

• $ amount to be risked per sequence: X

• Dynamic Lots per Sequence (True or False)

• Divide Risk amount per Sequence by: X (Will always be 1 more than the “Divide high and low difference by X” input above) not sure if this input is needed..

• Take profit per pair in % (true or false)

• Take profit per pair in %: X

• Take profit per pair in  $ (true or false)

• Take profit per pair in  $: X

• Add another sequence of trades each time we place a manual trade: (True or False)

On chart display

Buy Button:

We need a on chart button to place manual buys that will start a sequence at the price we place the buys at, and if we start multiple sequences it will use all the sequences to calculate 1 cost basis. And all the trades for all the sequences will take profit and restart.

Close pair trades button. Will Close all the trades for the chart it's on.

Close all trades button. Will close all open and pending trades for all pairs.

We also need an on screen legend to display the cost bases for each pair traded with a line on the chart to show the cost bases and the take profit levels.