The strategy trades the GBPUSD in a 5-minutes period.
There are 2 types of orders: 1st entry orders (Orders Type A) for
which the trade amount is calculated according to the formula:
‘Default Trade Amount’ x ‘Equity’ / 100000 ('Default Trade
Amount' = 0.75 million); and repositioning
orders (Orders Type B) for which the trade amount is calculated
according to the formula = ‘Previous Closed Order Trade Amount’ x
3.
The signals generated by the algorithm to trade the Orders Type A
follow the Stochastic Oscillator (STOCH) and the Bollinger Bands
(BBANDS). The Orders Type A are traded from Monday to Thursday and
from 6 AM to 12 noon.
To open a sell Order Type A, the following conditions have to verify:
STOCH(shift0) equal or higher than 90; STOCH(shift1) equal or higher
than 80; STOCH(shift2) equal or higher than 70; Last Tick equal or
higher than the BBANDS(shift0 – upper band); BBANDS(shift0 – upper
band) equal or higher than BBANDS(shift1 – upper band);
BBANDS(shift1 – upper band) equal or higher than BBANDS(shift2 –
upper band); the spread equal or lower than 2 pips; the difference
between the daily high and the daily low is equal or higher than 25
pips; the gap between two consecutive orders has to be equal or higher
than 60 minutes.
To open a buy Order Type A, the following conditions have to verify:
STOCH(shift0) equal or lower than 10; STOCH(shift1) equal or lower
than 20; STOCH(shift2) equal or lower than 30; Last Tick equal or
lower than the BBANDS(shift0 – upper band); BBANDS(shift0 – upper
band) equal or lower than BBANDS(shift1 – upper band); BBANDS(shift1
– upper band) equal or lower than BBANDS(shift2 – upper band); the
spread equal or lower than 2 pips; the difference between the daily
high and the daily low is equal or higher than 25 pips; the gap
between two consecutive orders has to be equal or higher than 60
minutes.
The Orders Type A have the following assignments: take profit @ 30
pips; stop loss @ 30 pips; slippage @ 1 pip. If the equity falls below
99.000 EUR, the take profit is set @ 60 pips.
The Orders Type B have no schedule restrictions. These are opened when
the previously closed order was non-profitable and only if the
difference between the daily high and the daily low is equal or higher
than 25 pips.
When an Order Type A is closed with profit loss, a new order, an Order
Type B is opened with the following assignments: take profit @ 31
pips; stop loss @ 30 pips; slippage @ 1 pip. If the 1st Order
Type B is closed with profit loss, a new order, the 2nd Order Type B
is
opened with the following assignments: take profit @ 29 pips; stop
loss @ 75 pips; slippage @ 1 pip.
If the Use Of Leverage rises above 175%, the order in the market is
closed automatically.