Discussing the article: "Automating Trading Strategies in MQL5 (Part 19): Envelopes Trend Bounce Scalping — Trade Execution and Risk Management (Part II)"

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Check out the new article: Automating Trading Strategies in MQL5 (Part 19): Envelopes Trend Bounce Scalping — Trade Execution and Risk Management (Part II).

In this article, we implement trade execution and risk management for the Envelopes Trend Bounce Scalping Strategy in MQL5. We implement order placement and risk controls like stop-loss and position sizing. We conclude with backtesting and optimization, building on Part 18’s foundation.

In Part 18, we established the groundwork for the Envelopes Trend Bounce Scalping Strategy, setting up the system to detect trading signals using price interactions with the Envelopes indicator, confirmed by trend filters like moving averages and RSI. We focused on building the infrastructure to monitor market conditions and identify potential trade opportunities, but we did not enable the system to execute trades or manage risks. Our roadmap for Part 19 shifts to activating trade execution and implementing risk management to ensure the strategy can act on signals effectively and safely.

Our architectural plan prioritizes a modular approach, creating a clear path to translate signals into trades while incorporating safeguards. We aim to develop a mechanism for placing buy and sell orders based on validated signals, alongside a risk management framework that sets stop-loss and take-profit levels, adjusts position sizes based on account balance, and limits overall losses to protect capital. This design will create a cohesive, automated scalping system. We will define some more classes to handle the trading and incorporate all the logic in the tick logic to bring everything to life. In a nutshell, this is what we aim to achieve.

Author: Allan Munene Mutiiria