Due to the simultaneous installation of orders for Buy and Sell, the issue of choosing a target is solved - the direction of price movement. According to the law of harmonic oscillations, the price always returns to its original position sooner or later, and the forex market is no exception. Balancing simultaneously multi-directional orders, the expert captures profits at the market reversals, the smaller the initial TP - take profit (take profit) - an application that captures the profit, the more precisely the turn of the market is determined, but the drawdown also increases. Therefore, we need a reasonable choice of the ratio of drawdown, profit and TP, that is easily achieved by testing for the history of trades in the strategy tester for a specific currency pair. The expert is very effective in conditions of high volatility (lack of certainty of the direction of price movement, news output).
The EA may trade both in mono and multi-currency modes. To do this, attach the EA to the window of another symbol changing MagicNumber and enter other inputs for the new symbol (for example, if you opened GBPUSD with MagicNumber = 8875932, set MagicNumber = 8875933 for another window, for example EURCAD, etc.).
By entering the market with two orders simultaneously (Buy and Sell) on a single currency pair, the EA accompanies each of them with a fixed take profit equal to Fibo level (of the appropriate timeframe) preliminarily calculated by indicators or found during the EA optimization in the tester within a certain time interval (at least a month, though a quarter or six months are more desirable). After Buy or Sell profit is triggered, the Expert Advisor places a Buy order if the previous one has been closed on Sell, or a Sell order if the previous one has been closed on Buy considering Martingale, combining both new and previous order's profits into one and moving the profit to the possible target point of the price.
Another (balancing) order is opened in the direction opposite to the former two ones with the value equal to the last order (with Martingale) creating the lock with the last order. This allows the EA to adapt to volatility and secure your funds. If volatility exceeds the estimated order take profit, the EA takes the profit repeating the previous operation and considering Martingale till the market reverses or volatility starts decreasing. Stop Loss is placed for the order in case of the market reversal. That Stop Loss can have a fixed value or a Trailing Stop.
After closing all previously placed orders by profit (they are currently connected by one profit), the Expert Advisor starts the new trading cycle by placing Buy and Sell orders. The cycle continues till the Expert Advisor is stopped.
- TP - take profit;
- SL - stop loss;
- Use Trailing Stop - enable/disable trailing stop;
- Trailing Stop - trailing stop value;
- Lots - lot size. The trading robot allows using any lot value fractional to 0.01 or 0.1;
- Martinlot - Lots multiplier for receiving greater profit without losses; see Martingale for details (– 1 means no Martingale and increased fractionality 0.1, i.e. 1+0.1=1.1, etc.);
- MagicNumber - integer constant used to identify orders;
- MaxLots - maximum allowed lot size. In practice, that looks the following way: in case the lot size is increased from, say, 0.01 to 2 by using Martingale, all subsequent orders placed by the trading robot will have the size of 2 lots. The Martingale will work only within 0.01-2. The parameter also serves for reducing the balance drawdown during strong bullish or bearish market sentiments and volatility.