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MultiCurrency Spread Trend EA

Premise

SpreadTrend EA is a software that analyzes correlations and the spread between five forex pairs in search of a momentum of entry that can allow obtaining a statistical advantage to reach profit.


What is Spread Trading

The Spread Trading is the study of the strength of two currency pairs at the same time in order to assess which of the pair is able to outperform the other. The object of the study is the correlation, volatility in time and the strength of trend.


What are advantages of Spread Trading

Benefits are numerous and can be summarized in the following points:

  • Hedging portfolio by not using Stop Loss.
  • Never suffering from hunting Stop Loss that brokers are so good at doing!
  • Do not need to worry about a market crash, like the recent decision of the Swiss National Bank to abandon the defense share of 1.20 EURCHF.
  • The repercussions of the decisions of the ECB rate or policies of quantitative easing etc.


Why I spend time on Spread Trading

The spread trader aims to evaluate and control the prices of an underlying asset with respect to the prices of the underlying asset with different maturities or with related underlying prices.

For example, check how the EURUSD price evolves against the GBPUSD price. Or how the price of the future on the DAX expires in March with respect to the one with an expiry in June.

Spread trading requires strong insight from the trader. A good trader should not only look at the current price but how this evolves over time compared to other factors.

Making spread trading requires the ability to maintain and view different future scenarios in a single moment.

Spread trading can be applied both in the phases of trending markets and in phases of severe turbulence.


Spread trading on forex

To study the cycles of spread trading in forex, it is necessary to use specific tools that I have built over time based on my experience of errors and successes.

To calculate the spread and its direction, I created a proprietary formulas and used them on this Expert Advisor.


Inputs

List of forex pairs to use and their lot

  • firstInstrument = "symbol1"; --> first instrument to trade like "EURUSD"
    • traders can choose the other symbols on secondInstrument, thirdInstrument, fourthInstrument and fifthInstrument input parameters.
  • firstlots=0.1;
    • trader can choose the other lots on secondlots, thirdlots, fourthlots and fifthlots inputs.

Long and Short Spreads activations

  • LongSpread=true;
  • ShortSpread=true;

Trend and Spread filter timeframe

  • TF_filtro = PERIOD_H4; ---> trend filter timeframe
  • TF_Spread=PERIOD_D1; ---> timeframe to use to calculate the spreads

Comments and Magic for trades

  • comment="MSpread EA 2018";
  • stime="--- Magic & Work Timing";
  • magic2 = 3456;

Pip distance for pending orders

  • srange="--- pending pip distance";
    • range = 20;

Closure spread rules

  • SpreadToClose = -150; // value in pips
    • sBalance="--- Start balance of the account to check ---";
  • StartBalance=50000;
    • spDD="--- Max DrawDown";
  • DDtoClose=25000;
    • sDD="--- DD Management";
  • DD_2 = 199;
  • MM_2 = 1; // lot multiplicator after DD (1 is off)
  • sProfit="--- Profit in money";
  • Profit=149;
  • RR=1; // Risk Reward Ratio

Max spreads to open

  • maxsell = 2;
  • maxbuy = 2;

Time hour to trade

  • timestart=0;
  • timestop=25;

Alerts and notifications

  • PopUpAlert= false; //popup alert
  • PushAlert=true; //push notifications alert

Text color and size to print on the chart

  • color Color_Text = clrYellow;
  • text_dim = 8


HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions. Any data and information are provided 'as is' solely for informational purposes, and are not intended for trading purposes or advice.

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