Expert Advisor based on Price Action with Risk Management features

The idea for this trading system is as follows:

This is and "always in the market" type of system. Meaning that there is always an opened trade. Hence, market entries are performed whenever a new bar is created and there are no current opened trades.

The direction of the trade will depend on the previous bar direction and trades are closed whenever a bar closes in the opposite direction.

Trends, therefore, are determined by the previous bar direction and they continue until there is a new bar that closes in the opposite direction.

Trading Signal:

For the 1st Trade or if the trend changes direction, the last bar direction is the signal.

If the previous bar was a green candle (closed upwards), it is a buy signal.

If it was a red candle (closed downwards), it is a sell signal. If it was an open=close, no new trade is performed.

Exits

The exits are performed if the candle changes color/direction relatively to the previous bar. Or if SL/TP are hit if they are activated- they should be optional inputs.

Lot sizing

Volume can be determined as: Fixed lots, from inputs. Or, as a risked percentage of the current balance.

How to measure risk

Lot Sizing Risk is based on the previous bar as follows:

For Buy orders: Risk = Open(current bar) - Low( previous bar)

For Sell Orders: Risk = High (previous bar) -Open (current bar)

Corner Cases:

For Buy signal: When Open (current bar) is lower than Low (previous bar), Risk = High (previous bar) - Low (previous bar)

For Sell signal: When Open (current bar) is higher than High (previous bar), Risk = High (previous bar) - Low (previous bar)

Therefore, having calculated the "risk" value, lot size shoud be calculated as:

lot = (risked% * current balance)/ Risk

The "Risked %" should be defined on the inputs if "Fixed lot" is false. Example:

Fixed Lots = False

Fixed Lot Size = 0.01

Risk = 0.01 (for 1% risk.)

Regarding SL and TP

SL, if activated from the inputs, should be set depending on the order type:

For Buy Orders: At the previous bar low - Current Spread.

For Sell Orders: At the previous bar High + Current Spread.

Corner cases:

For Buy signal: When Open (current bar) is lower than Low (previous bar), SL should be set on SL = Current Ask Price - (High (previous bar) - Low (previous bar)) - Current Spread.

For Sell signal: When Open (current bar) is higher than High (previous bar), SL = Current Bid Price + (High (previous bar) - Low (previous bar)) + Current Spread.

As For the Take Profit:

The Take Profit should be enabled or disabled from the inputs. And in case it is enabled, it should be set as a "double" multiple of the "Risk" called RR (as for Risk Reward) according to the previous detailed formula for risk.

Example: TP = true RR = 2 Which in this case, it would be 2 * Risk.

Symbol Considerations:

The Risk Management calculations should consider the Balance currency and the base and quote curriencies.

For example, if the Account currency is USD, it should calculate the risk accordingly whether the FX pair is EURUSD or USDJPY.

Also, if the Account currency is EUR, it should calculate the risk properly for the pair EURUSD or BTCEUR. Other non-forex pairs: NAS100, USA.30, NQ100, SPX500, US30 . These should be calculated in USD. For example, for BTC or EUR based account. For the rest, as a default, they should be considered as in USD.

I'm open to suggestions from the developer.