Buy the Dip EA
A profit trade can exceed a loss up to 10 times - a clever moneymanagement makes Buy The Dip highly profitable.
The EA buys on dips (days lows) and sells on spikes (days highs). No martingale, no grid, always just one order open with StopLoss.
See it in the signal:
The EA works fully automatic and is optimized to work in H1 chart in GBPUSD.
The default settings are for GBPUSD H1 chart. A set file for EURUSD is provided in the comments.
The EA draws trendlines into the chart. Don't (re)move or rename them!
The lines have few function for the whole, but do have an effect sometimes.
Lines older than 5 days are deleted automaticly. The first 2 days of trading the lines are incorrect, don't worry.
Traders can set the EA to hedge or open more than one order. More info in the settings.
Auto money management is an important part of the strategy, please activate it! (set it to 1)
(For the mql5 validation it must be 0)
For backtesting is best to set Auto_Moneymanage = 2 and test with USD 10000.
Then the lotzise is always calculated on 10000. That simulates a test with fixed lotsize, like show in the screenshots.
Based on the distance to the high or low the effective risk management is the particular strength of the system.
The EA sets the StopLoss near the order open price and calculates the lotsize according the set max. risk per trade.
With a set max. risk of 1%, a StopLoss of 8 pip and a profit of 80 pip the profit of that one trade is 10%!
Of course a tight StopLoss causes more loss trades. But just one profit trade can balance a handful of loss trades.
It is better to risk 3 loss trades than miss one profit trade!
Features for active traders
By pressing buttons in the chart traders can open trades the EA won't open.
A click on 'Next Buy' or 'Next Sell' trigger trades at the next change of the hour.
The EA shows by change of the color of the button that a days high or low is made, see screenshots.
To see the buttons the setting 'ButtonSize' must be not 0. Details in the settings.
When a button is active it changes the color and triggers a trade with the same calculation for the lotsize,
setting of SL etc. as if the EA had opened it (can be tested in 'visual backtest').
The Buy The Dip Utility >> can be used in any chart.
Timing is important! Set SetUTC (GMT) according to the timezone of your broker!
In case of doubt do backtests with different sets for UTC. The setting with the best result is the right one.
SetUTC - timezone. Default set UTC=2 is best, used by many brokers
Pair: Pair 1=EURUSD, 2=GBPUSD, 3=AUDUSD, 4=GBPJPY (only 1 and 2 work until now)
Auto_Moneymanage: auto money management: 1 = On
2 = Testmode: Lotsize calculated always on USD 10000.
As lotsize depends on the StopLoss that varies, testmode simulates test with fixed lotsize.
Don't deactivate Auto_Moneymanage, it is part of the strategy!
MiniLots: if true, Auto_Moneym. has steps of 0.01 lot
MaximumRisk: % of account free margin set on risk for a trade
Lots: lot size if Auto_Moneym. is disabled
Hedge: deactivate if hedging is not possible
MaxOrders: max. orders in one direction - set to 1 if FIFO
StopLossBuy: distance of stop loss under the low in points
TakeProfitB: points profit when a buy order is closed
Following same setting for Sell orders
For active traders: If the user sets a TakeProfit to a running order the automatic TakeProfit is deactivated.
HrFriStop: hour EA stops opening orders Fridays (24 = disabled)
HrFriClose: hour when the EA closes open orders Fridays (24 = disabled)
magic: magic number
DrawLines: draws Highs and Lows of former days, weeks in the chart. Mouseover shows the name of the line.
- The EA orientates on these lines. More info in the description of the indicator: Support Resistance Free
- ButtonSize: if not 0 two buttons appear left side in the chart. One digit from 1 to 8 changes the button size.
- Set one digit before it sets the buttons lower in the chart. So e.g. 34 shows 2 medium size buttons a little under the top.
Info about the buttons in the screenshots
The buttons are features for advanced traders. The EA is just a program, it is not artificial intelligence.
Human intelligence can see opportunities the EA doesn't see.