1. **Indicators**:
- **50-period Simple Moving Average (SMA)**.
- **20-period Simple Moving Average (SMA)**.
- **ADX for strong trend confirmation.
- **ATR (14)** for volatility-based stop loss.
2. **Buy Entry Criteria**:
1. **Primary Signal**: Price opens below the 50 SMA and closes above the 50 SMA.
3. - **Momentum Confirmation**:- Only allow trades if the **ADX is above 25**, indicating a strong trend. If ADX is below 25, no trade should be triggered to avoid false signals in sideways markets.
4. **Execute 2 Buy Orders** when the conditions above are met.
3. **Sell Entry Criteria**:
1. **Primary Signal**: Price opens above the 50 SMA and closes below the 50 SMA.
2. **Momentum Confirmation**: Only allow trades if the ADX is above 25, indicating a strong trend. If ADX is below 25, no trade should be triggered to avoid false signals in sideways markets.
4. **Execute 2 Sell Orders** when the conditions above are met.
4. **Stop Loss Parameters**:
1. **ATR-based Stop Loss**:
- Use the **ATR (14)** to calculate the stop loss distance.
- Set stop loss **1x ATR** or **1.5x ATR** below the entry candle for buy orders and above the entry candle for sell orders.
2. **Initial Stop Loss for Both Positions**:
- For buy orders, place stop loss 0.5 pips below the candle that crosses the 50 SMA.
- For sell orders, place stop loss 0.5 pips above the candle that crosses the 50 SMA.
5. **Take Profit Parameters**:
1. **First Position**:
- Set a **fixed take profit** at a **2:1 risk-reward ratio** (e.g., if risking 5 pips, take profit at 10 pips).
2. **Second Position**:
- Leave the second position **open without a fixed take profit**.
- Implement a **trailing stop**:
- For buy orders, trail the stop **1 pip below the 20 SMA**.
- For sell orders, trail the stop **1 pip above the 20 SMA**.
Risk management:
1. Position Sizing Based on Risk Percentage Objective: The bot should risk a fixed percentage of the account balance on each trade.Details:
2. The bot should allow the user to input a percentage of account balance to risk per trade (default: 2%).The position size should be calculated dynamically based on the stop-loss distance in pips.
3. Implementation Summary:
1. Set up **50 SMA** and **20 SMA** on the chosen timeframes (preferably 1-minute or 5-minute charts).
2. Integrate the **ADX for momentum confirmation before executing trades.
3. Calculate **ATR-based stop loss** dynamically to adjust according to market volatility.
4. Execute **two orders** when entry criteria are met. Set different exit strategies for each:
- First position with a fixed take profit.
- Second position with a trailing stop.
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