Harrow Hedge is an Expert Advisor (EA) that has been developed based on Harrow Order. Beside Support and Resistance, Martingale and Anti-Martingale method, this EA also do hedging method to better save the balance of using Martingale.
The main difference from Harrow Order is that Harrow Hedge trades buy or sell orders in parallel, but Harrow Order trades buy or sell orders in sequence. For more information about Harrow Order, you can read https://www.mql5.com/en/market/product/28456.
The additional idea of Harrow Hedge is help a misplaced order using opposite orders. For example, a buy order at decreasing market price. To make this misplaced order still profitable, this EA will use the profit of the opposite order as stop loss.
Same as Harrow Order, the Support and Resistance position is used to detect entry point of orders. When the price touches the Support or Resistance position, this EA sends an initial buy order, if RSI (Relative Strength Index) value is greater than 50, and sends a sell order when RSI value is less than 50.
And Anti-Martingale method is used when the order can potentially be doubled. For example, a buy order at the increasing of market price. The next order will be sent the same type order, but with half lot.
The profit target per initial order launch can be set by the profit factor parameter that is multiplied by initial lots. If this profit factor parameter is set to 100, and EA uses a lot size of 0.1, it means the estimated profit target is 100*0.1=10 USD. When every calculation gets this target, this EA will close all orders, and start anew with another initial order. Based on backtesting results, this EA needs 10 hedging orders or more to reach the estimated target profit.
So to support the Martingale and hedging methods, this EA needs a high amount of balance. It should have a ratio of 1:200000 to the initial lot that will be used. For example, if EA uses a lot size of 0.1, the required balance is 20000 USD, and if EA uses a lot size of 0.01 then the required balance is 2000 USD, etc.
However this EA is not safe for working by itself. Trader needs to be keep watching and take action if something bad is going on with this EA.
Pairs and timeframes
This EA is recommended for use on the EURUSD pair with the M1 timeframe. But as seen from backtest results for February 2018 in screenshot below, Harrow Hedge can also be used on other pairs like GPBUSD and XAUUSD, with initial balance as required.
- MagicNumber - the mark number used to identify orders, which are sent and managed by this EA. If this EA runs on multiple pairs, every pair must be run with different magic number, for example: GBPUSD - 100001, EURUSD - 200002, XAUUSD - 300003.
- NumCandle - the number of candles used to calculate Support and Resistance. The default value is 60 candles. If this EA is used on the M1 timeframe and NumCandle = 60, the Support and Resistance levels used are the Support and Resistance for the last hour.
- CloseAtStop - the option to close or not all orders at Remove EA action. Only removes orders that have magic number specified in MagicNumber above.
- OrderLots - Initial lots value used for the initial orders. For example: OrderLots = 0.01, 0.02, 0.04, 0.08, etc.
- MaximumMartingale - the maximum Martingale order. Default value is 6, i.e. the maximum Martingale multiplier is 25=32. So for virtual order, back calculations will use the maximum Martingale until multiplier 32. It will affect the decision of lot value of real next order to be sent.
- MaximumLots - the maximum lots value that will be used by this EA. If back calculations suggest to place the order with a lot size greater than this parameter, the EA will cancel the request of new order.
- DeltaLevel - the level of distance between two orders. It depends on the width of Support and Resistance. If the range is too narrow, the distance between orders can be widened by increasing the value in this parameter.
- SlipPage - The slippage value used for every new order request.
- ProfitFactor - The estimated profit that will be taken at every back calculation. For example, if the profit factor is set to 100, and EA uses a lot size of 0.1, the estimated profit that will taken used is 100*0.1 = 10 USD. If calculations reach this estimated profit, the EA will close all orders and begin with another initial order.
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