The Range Trader EA is a fully automated short-term and medium-term trading robot.
The EA does NOT use hedging, martingale, grid strategies, arbitration, etc.
The Range Trader Expert Advisor is a range trading system. It performs best in sideways, moderately up and moderately down moving markets. Sharp spike moves (due to news events) may distort performance. The robot enters orders one at the time and never has more than one order /trade open at a time. Stop losses and Targets are set for each trade. This EA attempts to recognize and avoid trading in extremely volatile periods and wait for calm periods. Consequently, there may be times the EA does not trade, for good reason.
The settings are shown in the diagrams are optimizations for EURUSD (H1), GBPUSD (H1) and USDJPY (H1). This EA is also suitable to trade any other pairs, including JPY pairs (EURJPY, USDJPY, GBPJPY, etc.) subject to periodic optimizations.
- The EA has been optimized for EURUSD (H1) and GBPUSD (H1).
- You may use four or five-digit accounts.
- Smaller spreads significantly increases the EA's efficiency.
During quiet periods of trading when market activity is very narrow, trades will be fewer.
The EA is suitable to trade any other pairs, including JPY pairs (EURJPY, USDJPY, GBPJPY, etc.) subject to periodic optimizations. Since market characteristics change over time, it may be unreasonable to expect one set of parameters to work over 10 – 20 years without re-optimization. From general analysis, it appears that optimizations over a 2-3 years will be valid for 12 -18 months, before another optimization may be useful.
From the examples posted, the trade frequency expectation appears to be 1 – 5 trades per week depending on the pair traded.
It is important to back test the Range Trader Expert System with data modeling quality of not less than 90%. Any optimization results may be suspect if data modeling quality is < 90%. If you successfully optimize the EA, you will note that the EA is profitable under a number of different settings. This fact should give you confidence that the EA trading concept displays a tradeable edge.
This EA includes auto lot escalation depending on wins and losses accumulated. During losses, the trade sizes will be quickly reduced to minimize the effects of any potential losing streaks. During successful periods, the trade size will be increased rapidly to maximize wins. See details below in the Parameters descriptions. You may wish to back test and experiment with those settings.
If you so choose, you may neutralize auto lot escalation by simply setting the MinLots and MaxLots settings equal to the initial Lots setting. This effectively leaves no room to change the lot size unless done manually.
- MAGICMA – unique EA session number by symbol;
- hval- high level cutoff reading, may be optimized;
- lval- low level cutoff reading, may be optimized;
- ACI_Range – effective range used to detect extreme volatility;
- Lots - lot size;
- BarRange – Number of bars referenced for trade setup;
- AFactor – a volatility coefficient, may be optimized;
- LFactor – a smoothing factor, may be optimized as needed;
- StoplossPips - stop loss size in pips;
- AppLoc – Optional Comment to identify the chart source running the EA. This may be leveraged in a future version for Text/EMAIL reports of trades or errors.
- MaxRiskFactor – Max multiple of account value to trade, may be optimized as needed;
- MinLots – Tiniest lot size to be used if losing streak is detected. This size is immediately applied, no gradual lot decreases are used;
- MaxLots – Largest lot size to be used during winning streaks;
- MinTrades – how many trades to skip before going live.
- ScaleFactor – Scaling factor for how fast to increase lot size during wins. Less than 1 increases lot sizes faster. Greater than 1, will increase lot size slower during wins.
- SLTPBuffer – slippage allowed for Stop Loss /Target Profit when placing orders in fast markets;
The MAGICMA number is user assigned every time the EA is instantiated. If a restart occurs with open trades, using the same MAGICMA number would allow the EA to pick up where it left off, assess open orders, close orders, etc.