How do you handle range-based EAs during low volatility periods? - page 2

 
Forex Journey:
Hello everyone,

I am testing a range-based Expert Advisor on a few instruments.
The EA avoids overtrading and stays inactive during low-volatility conditions.

During holiday periods or very quiet sessions, I prefer to keep the EA attached
and let it follow its internal rules rather than interfere manually.

I would like to hear how experienced traders here manage such periods.
Do you keep your EAs running or do you detach them during low volatility?

Thank you for your guidance.
"In my experience, I prefer to keep the EA running only if its internal logic can effectively filter out 'fakeouts' or liquidity sweeps. I previously tested a strategy on Equal Highs (EQH) that failed because the EA couldn't distinguish between true resistance and a stop-hunt.
If your EA has a solid volatility filter, letting it follow its rules is usually better than manual interference, as long as you've stress-tested it during low-liquidity periods."
 
Mohd Faisal Bin Muhmmad #:
I previously tested a strategy on Equal Highs (EQH) that failed because the EA couldn't distinguish between true resistance and a stop-hunt.

If you want to stay with trading resistance, have a look at monthly and weekly resistance lines coupled with a daily candle that has a long upper wick─not necessarily a pinbar, but a quickly rejected high. The same rule applies to drawing the resistance levels─look for quickly rejected highs on the weekly and monthly charts. As you've already found, mere equal highs are not reliable. Also, most support and resistance indicators don't do this detailed analysis. Once you've found a confluence of monthy and/or weekly resistance and that closed daily spike candle, switch to a 15 minute chart (the weekly and monthly resistance lines will carry over). Then you simply short the cyclical up swings as they form.

I should note that this is a bit like searching for needles in a haystack and is basically a grind. To get some action, you'll have to continuously scan all of the majors and crosses. I learned this strategy from a professional (and manual) FX trader decades ago─who was trained by an even older professional FX trader. Assuming that you're able to accurately define a spike candle, programmatically, the strategy could be automated today.