The trading strategy of the Forex Tramp adviser belongs to the class of so-called breakdown strategies that generate signals to enter the market when the price crosses the border of the trading range, in the direction of the price movement. Generally speaking, breakout trading is one of the most popular and often used Forex trading strategies. Unfortunately, classic strategies of this sort , developed way back and once showed enviable leads to real Forex trading, not add the fashionable market. Therefore, we had to significantly modify and supplement the prevailing breakdown strategies so as to get an algorithm suitable for successful trading in fully automatic mode.
The main issues that comes during trading are:
How to determine the price range?
What to do with false breakdowns that inevitably occur?
To determine the price range in the Forex Tramp advisor, we used a digital filter. A feature of this approach is that the adviser does not use Meta Trader terminal quotes on any time frames. Advisor filters directly the price coming from the broker in the form of ticks. Therefore, the trading results do not depend on which time frame to attach the adviser to.
At the borders of the calculated trading range, the EA sets pending orders, at the upper border of buy-stop, at the lower border of sell-stop. All trading orders opened by the adviser have stop-loss and take-profit levels. Only one trading order can always be within the market. In case of false breakdowns, the order is closed at stop loss, leading to a loss. In order to catch up on this loss, the EA increases the quantity of subsequent order, i.e. uses martingale. Unlike many trading systems using martingale, in our strategy, increasing the volume of orders, we do not rely on luck. We know that sooner or later the price will go out of the range, and in our strategy it does not matter to us which way the price will break the range. In case of any breakdown, one of the pending orders will work and close at take profit,
To use the EA on different currency pairs, you should use various settings specially optimized for this tool.
The adviser comes with recommended settings for a number of currency pairs.
For other couples, you can design your own settings.
Forex Tramp EA Settings :
SETname : Assigns a name to a set of settings. For example, if you set S ETname = My Dream Set , then “My Dream Set” will be displayed in the advisor information panel. Thus, you can immediately understand what tinctures this copy of the adviser works with.
Flag_ Stop (TRUE / FALSE ): If this flag is about , the EA won’t open a replacement order after closing the present one. Used to stop the adviser.
Filter : digital filter step for determining the worth range
SL fact : stop loss orders in Filter units
Take Profit_Martin : adjusts the increase in profit of each subsequent order when using martingale
Indent : indent of a pending order from the range border
LotSize : base lot value
Auto MM (TRUE / FALSE ) : When Auto MM is enabled, the base lot of the Lot Size pyramid will be recalculated in accordance with the account balance and the Auto MM Equity parameter set . So, with a balance of 20,000 and Auto MM Equity = 10,000, the base lot of the pyramid will be automatically doubled. If the account balance increases as a result of trading for every 1/10 of Auto MM Equity, the base lot will increase accordingly.
Auto MM Equity : Auto MM parameter .
Magic : Magic (a unique number by which the adviser identifies its orders).
Verbose ( TRUE / FALSE): Enables logging of a progress report.