Converting Zigzag-based indicator into a trend following MT4 EA

l  Goal

Ø  Convert an indicator “Zigzag_Dow” into a trend following EA.

Ø  With multiple “trailing entries” with position sizing, breakeven protection and trailing stop features.    

l  Indicator

Ø  Zigzag_Dow (to be provided to contracted developer)   

²  It modified the original Zigzag indicator 

²  It shows trend direction based on Dow Theory: Trends persist until a clear reversal occurs.

l  Horizontal Line (in Red) : shows Last Dow Price (LDP) which indicates a pivot point for trend reversal

Ø  the last Lower Low which is the starting point of current Highest High  

Ø  the last Higher High which is the starting point of the current Lowest Low

l  Filled Arrow: shows a trend reversal when a price passes LDP

l  Empty Arrow: shows a trend continuation when a price passes then-current Higher High / Lower Low

Ø  EA should keep the original input parameters as they are.

l  Entry  

Ø  Multiple Entries

²  Multiple entries should be made.

Ø  Entry Triggers

²  Arrows should trigger entry points. Users should be able to choose Arrows for entry trigger by selecting True/False.         

²  1st Arrow (Filled Arrow) : True/False

l  1st Arrow appears when price passes the LDP

²  2nd Arrow (Empty Arrow) : True/False

l  2nd and the following Arrow appears when price passes the then-current Higher High / Lower Low depending on the direction

²  3rd Arrow (Empty Arrow): True/False  

²  All Arrow (including 4th and following Arrows) : True/False

Ø  Entry Points

²  Orders should be placed at pullback points based on Fibonacci retracement ratio calculated based on the LDP and the then-current Highest High / Lowest Low following Entry Triggers

²  Fibo retracement points to be used for entry points should be selectable from the following seven ratios:

l  0.0: True/False

l  23.6: True/False

l  38.2: True/False

l  50.0: True/False

l  61.8: True/False

l  78.6: True/False

l  88.6: True/False

²  Entry points should be calculated for each Entry Trigger (=Arrow) based on Fibo retracement ratios between the LDP and the new Highest High / Lowest Low following respective Entry Trigger.   

Ø  Type of entry order

²  Entry order type should be able to chosen from Stop Entry Order or Trailing Entry Order.

²  Stop Entry Order

l  Place a pending stop order after the price passes an entry point by Trigger Pips defined as follows:

Ø  Trigger Pips = Stop Level (as provided by broker) + Stop Order Margin Pips

²  Trailing Entry Order

l  Place a pending stop order after the price passes an entry point by Trigger Pips as mentioned above, then the pending order should be modified like a trailing stop if price moves further away from the then-current order price.   Trailing method should be selectable from ATR, MA and Fixed Distance

Ø  ATR Trailing Entry

²  TF

²  ATR Period

²  ATR Multiple

²  ATR Additional pips

Ø  MA Trailing Entry

²  TF

²  MA method

²  MA period

²  MA Additional pips

Ø  Fixed Distance Trailing Entry

²  Fixed Trailing Entry Distance Pips

Ø  SL

²  Original stop loss should be placed at LDP plus Additional SL Pips away from the entry price

l  Additional SL Pips:

Ø  TP

²  TP pending order should be placed based on users’ defined Risk Reward ratio

l  RR ratio:    

Ø  Risk (Position Size) per order

²  Position size should be calculated based on a risk taken (Entry price – SL) as % of Account Equity or Account Balance

l  Risk %:

l  Account Equity or Account Balance:

Ø  Day of the week

²  EA operating day of the week

Ø  Time of the day

²  EA operating hours of the week

l  Exit

Ø  Breakeven Protection (move SL to breakeven + BE Profit)

²  Want to have breakeven protection feature at users’ choice

l  Breakeven Protection: True/False

²  Breakeven should be triggered after price moves in profit by user defined pips

l  Breakeven Trigger Profit in Pips:

²  SL should be moved to a point securing user defined profit

l  Breakeven Protected Profit in Pips:

Ø  Trailing Stop

²  ATR Trailing Stop

l  TF:

l  ATR Period:

l  ATR Multiple:

l  ATR Additional pips to be added:  

²  MA Trailing Stop

l  TF:

l  MA method

l  MA period:

l  MA Additional pips to be added:

²  Fixed Distance Trailing Stop

l  Fixed Trailing Entry Distance Pips: