Due to the simultaneous installation of orders for Buy and Sell, the issue of choosing a target is solved - the direction of price movement. Locking and hedging is the main principle of this advisor. 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 presented Free BuySellProf EA is a demo version of the BuySellProf EA and can only trade in mono mode compared to the original, which can trade both in mono and multi-currency modes, as well as trade in manual and automated modes (traders can place their orders without interfering with the EA operation). Most of the input parameters, which allow to reduce the drawdown and set breakeven, are disabled in the demo version.
- TP - take profit order;
- SL - stop loss order;
- Use Trailing Stop - (disabled in demo version) enable/disable trailing stop;
- Trailing Stop - (disabled in demo version) trailing stop value;
- Lots - lot size. The trading robot allows using any lot value fractional to 0.01 or 0.1;
- Martinlot - (disabled in demo version) Lots multiplier for receiving greater profit and break even; see Martingale; for details (1 means no Martingale, increased by 0.1 fractions, i.e. 1+0.1=1.1 etc.);
- MaxLots - (disabled in demo version) 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.
Entering the market with two orders at once (Buy and Sell) on one currency pair, the adviser sets a fixed take profit TP for both orders. After Buy or Sell take 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 (for the original version of BuySellProf), combining both new and previous order's take profits into one and moving it (the take 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 (for the original version of BuySellProf), creating a 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 (for the original version of BuySellProf) till the market reverses or volatility starts decreasing. Stop Loss is placed for the order in case of the market reversal.
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.