We analyze the types of advisers in simple words Part 5

In order not to complicate again, I propose for now to dwell on EUR / USD. Then, when you “keep an eye on” and understand what movements we should look for, you can open any chart of any currency pair yourself and find what time they usually occur.

Move on. If you pay attention to the screenshot, you will see that in the vast majority of cases, during the “market inactivity”, the price leads in exactly the 2 ways that we need:

1) Low volatility flat. Clarification: we are not talking about flat flips with a width of 4 p with a spread of 3 p. We are interested in more or less wide ones for this particular trading time.

2) Low-volatility V-shaped reversal – more interesting here. It usually happens closer to the end of the inactivity phase. For example, on EUR / USD it often happens before/during the opening of the European session. This is usually explained by the fact that people made stops above the upper and lower borders of the flat, and they are removed, as it were because the price goes first in one direction, then in the other, so that cunning buyers and cunning sellers get a loss =)

Here we see that the “removal of stops” was rather late, and the main movement began later. This also happens. Trading is not an exact science 🙂

In fact, of course, no one knows whether there really is a “stopover” and why it happens in general, and we don’t need it. It’s enough that this happens quite often, and you can see for yourself by rewinding the chart.

Thus, during a low volatility flat, we get an upward movement and a downward movement, i.e. what we need – our adviser opens orders on one move and then closes them on the opposite, that’s all.

During the V-shaped reversal, the same thing – while the stops are removed from one comrade, our adviser opens orders, and when the price goes in the opposite direction, the adviser closes them.

Therefore, in my opinion, a good option would be to simply enable the adviser at the beginning of the INACTIVITY phase. If we have profit at its end, we simply turn off the adviser with a clear conscience. If by the end of it, the adviser opened orders and has not closed yet, you can try to wait for the period of “taking stops” and turn it off after making a profit (as in the figure above).

A good option would be to simply enable the Martingale Expert Advisor at the beginning of the INACTIVITY phase:

  • If we have profit at its end, we simply turn off the adviser with a clear conscience.
  • If by the end of it, the adviser opened orders and has not closed yet, you can try to wait for the period of “taking stops” and turn it off after making a profit.

Ideally, you should turn off the adviser immediately after the market inactivity phase has ended. Waiting for “taking stops” is, so to speak, a reinsurance option, if at the moment you have not fixed a profit. In fact, this is already trading in a period of high volatility, which means that the probability of recoilless movement increases, which increases the risks. Therefore, it is safer not to expect that the removal of stops will necessarily occur in both directions because such a scenario is not something guaranteed. Stops can be removed only in one direction, for example, and fly. But for our purposes, ONE removal of stops is enough for us to simply CLOSE profitable positions and leave the market. Pay attention to the previous figure: for closing purchases in profit, we need only a small upward movement (the place for closing deals is shown by a red line).

Here, as a guest – to be glad to see you again, you need to be able to leave on time =)

We summarize the work of the adviser on the martingale:

1) We trade only if there is an amount that will not be a pity to lose;

2) The account should always have the minimum amount possible for trading, not more. We transfer the excess to another trading account.

3) Be sure to calculate the maximum recoilless movement and minimum rollback. We proceed from these data to calculate the “price step” and the size of the deposit;

4) Priority – low-volatility flat and low-volatility V-shaped turns after it

5) We are looking for liquid instruments and trading on them during periods of low activity

6) We are not greedy and leave the market on time.

The goal is a small but stable profit that we get in market conditions that we understand.

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