Swing Gann and Fibonacci level
Trading robot adapted to work on a real account. The robot calculates Gann swings, which determine the wave structure of the market. Trading is performed on the third waves, in areas where they expand to significant Fibonacci levels.
The Gann swings represent the directional movement of the price, that is defined by the sequence of chart bars. The robot is able to calculate two-bar and three-bar Gann swings. The trend waves are determined based on the swings. A trend is considered to be the appearance of the first wave in the direction of the price, followed by a rollback (the second wave) and the breakout of the first wave (the third wave). Segment of the third wave from the breakout price to the significant Fibonacci level (it is usually the 1.618 level of the first wave's length) is the most stable part of the trend. This is the area where the robot places an order and trails it. Thus, a modification of the classic theory of Elliott waves is used in trading, with the waves identified by the Gann swings, and the targets are set by the Fibonacci levels. In addition, money management is applied to enhance the stability, which includes a unique algorithm for recovering the account during a drawdown with an adjustable coefficient.
Recommendations on usage
Default input parameters are optimized for EURUSD, H1. The robot can be used on other currency pairs as well. However, it is better to use the H1 timeframe. According to Gann classification, it refers to naturals. The conducted experiments also confirm it as the optimal choice. Volume of the trade operations in the function, which is based on the amount of available deposit, can be adjusted. To do that, it is better to use the Lot in point number 2 input parameter, which sets the lot size per the amount specified in the Deposit in point number 2. In order to achieve desired results when working on other currency pairs, you may have to select the best values for the following parameters: Ultimate target Fibo that sets the Fibonacci level for placing the target during expansion of the third wave; Point 1 function profit/stop and Point 2 function profit/stop which set the filtering quality for trades. When selecting values for the Ultimate target Fibo, you should use numbers that correspond to the Fibonacci levels - 1.38, 1.5, 1.62, 1.76, etc. For the Bars in the swing parameter, which defines the number of bar breakouts to identify a swing, it is better to use a value of 3 or 2. A larger value reduces the number of trades, but makes them more accurate.
- Language - English, Russian;
- Magic number - magic number for orders;
- Bars in the swing - the number of bar breakouts to identify a swing;
- Number of points swing - the number of calculated swing points for indication;
- Ultimate target Fibo (from 1 wave) - the final Fibo-target (from the base of the 1 wave);
- Minimum take profit - minimum take profit (points);
- Maximum stop loss - maximum stop loss (points);
- Distance to belay purposes - distance to safety levels (points);
- Point 1 function profit/stop, Point 2 function profit/stop - coordinates of the "profit/stop" dependency in the drawdown function;
- Point 1 function of the coefficient of restitution, Point 2 function of the coefficient of restitution - coordinates of the recovery coefficient dependency in the drawdown function;
- Draw on the screen swings - draw swings on the screen (Yes, No);
- Clearance - gap above distinctive spots (points);
Money management parameters
- Use money management - apply money management (Yes, No);
- Deposit in point number 1 - deposit in wave 1;
- Lot in point number 1 - lot in point 1;
- Deposit in point number 2 - deposit in wave 2;
- Lot in point number 2 - lot in point 2.
Interface parameters allow to customize the display style of on-screen information and do not require comments.
The robot can be used on 5 and 4 digit quotes. Automatically detects the number of digits in quotes. At the same time, the input parameters specified in points should always be set as for 5-digit quotes (set by default).