Data Sheet for FX AlgoTrader Gold Trendline Trading System

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Ashley Stevenson
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1 Data Sheet for FX AlgoTrader Gold Trendline Trading System Overview. The FX AlgoTrader Gold Trendline Trading system is the second product to be released in the FX AlgoTrader TT Series (TT=Trendline Trading) The system has been developed to allow traders to control trendline based trades without having to make extensive changes to external input parameters as is the norm with most MT4 Expert Advisors. In Gold the majority of the configuration is done by adding Gold control syntax to the trendline description field. Gold External Input Parameters The screenshot below show the external input parameters which are available to the trader for configuration purposes. Note: Trade_Breaks_On_Touch & Stealth Mode parameters are now obsolete due to improved syntax. Please see update to trading syntax at the end of this document NOTE FOR MICRO ACCOUNT HOLDERS There is a new external input parameter called Micro Account set this to true if you are running a micro account

2 Description of External Input Parameters Input Parameter Ref Sensitivity Take_Profit_Colour Stop_Loss_Colour Show_Joins Stop_Loss_Join_Colour Take_Profit_Join_Colour Allow_Multiple_Orders Maximum_Orders Trendline_Order_Interval Risk_Reward Description Your unique reference number which is supplied after purchase Sets the trigger sensitivity around each trendline. A setting of 2 will trigger a trade when price action is within +2 or -2 pips of the trendline. Sets the colour of the Take Profit levels automatically generated by the system Sets the colour of the Stop Loss levels automatically generated by the system Option to automatically connect each order with its respective stop loss and take profit levels. Defines the colour for the stop loss join line Defines the colour for the take profit join line If set to true the system will execute multiple orders while the total number of orders for the pair/asset being traded does not exceed the Maximum_Orders external input parameter (see below) Allows the trader to control the maximum number of orders Gold is able to execute. This is only applicable for Dip buying/rally selling trades off trendline configured for Buy and Sell respectively For non Break trades this parameter control the minimum time delay between orders. Its default value is 1 minute. If price action enters the trigger zone again 1 minute later a additional order will be triggered providing the Maximum_Orders and Allow_Multiple_Orders conditions are satisfied. Is used to automatically set the SL and TP levels when orders are executed. If the Risk_Reward is set to 2 and the trader has defined a stop loss for a trendline at 20 pips the system will automatically set the TP at 40 pips ie 2 X 20.

3 Max_Risk Micro_Account Defines the maximum allowable risk for each unique trade (not aggregated positions) If any trade has a loss greater than x% of the account equity the system will automatically close the trade. True/False set to true if you are running a micro account. Gold Trendline Order Syntax If a trader wants to power up a trendline for auto trading he/she can add specific Gold syntax into the trendline description field. The minimum number of commands required for the trendline to be active for Gold trading is 3. These are:- The type of trade The Stop Loss The Lot Size Types of Trade Please refer to updated guide on trade syntax. Gold supports 4 types of trade operation these are:- Buy Syntax = Buy or BUY o Used to enter long trades on tests of support in a trending or rangebound market Sell Syntax = Sell or SELL o Used to enter short trades on tests of resistance in a trending or rangebound market Buy Break Syntax = Break or BREAK in conjunction with buy syntax above o Used to enter long trades on a break of the defined trendline Sell Break Syntax = Break or BREAK in conjunction with sell syntax above o Used to enter short traded on a break of the defined trendline Stop Loss The stop loss must be defined in pips and must always be 2 digits. Examples

4 The Lot Size SL=20 defines a 20 pip stop loss sl=09 defines a 9 pips stop loss SL=30 defines a 30 pip stop loss The lots size can be defined using any of the following syntax:- LOTS=0.1 - sets the lot size to 0.1 Lots=0.1 as above LOTS=.01 - sets the lot size at 1 micro lot. Micro lots can be traded using micro accounts. Note there is no leading zero. The lot size number must always be 3 digits long including the spot or point figure. This allows you to trade a position range from.01 to 99 which should be more than wide enough for most traders Lots=10 sets the lot size at 10 standard lots.

5 Putting it all together You can enter Gold syntax into any trendline description field in any order you wish. Example 1 The screenshot above shows a EURUSD daily chart with a trendline drawn very roughly between two swing low points. If you wanted to configure the trendline so it would take a long order on any subsequent test of this support level you would right click on the trendline to display its description fields enter your selected parameters.

In the screenshot above we can see the trendline has been configured to take long orders when the price action is within a 2 pip threshold of the trendline.

6 In the screenshot above we can see the trendline has been configured to take long orders when the price action is within a 2 pip threshold of the trendline. (The Sensitivity external input parameter defines how close price action has to be before a trade is triggered) If the trade is executed the system will automatically place a stop loss level 35 pips below the entry price and set the take profit at 70 pips above the entry (Remember our Risk_Reward defined in the external input parameters is 2.0) For this type of trade we also need to consider other external input parameters which are:- Allow_Multiple_Orders Maximum_Orders Minimum_Order_Interval If Allow_Multiple_Orders is true and Maximum_Orders is greater than 1 we need to make sure our Minimum_Order_Interval is set to something sensible. If we were trading off a daily chart it would make sense to set the minimum order interval at something like 60 minutes. So if price action re-tests the support level 60 minutes or more after the last order the system will open another order providing the maximum order number hasn t been reached. Example 2 In the screenshot above we will get exactly the same outcome as example 1 except we ve just entered the order syntax in a different order and used caps for the buy order. Example 3

In this screenshot we ve taken a totally different approach and configured the same trendline to take a short position if price action breaks the trendline.

7 In this screenshot we ve taken a totally different approach and configured the same trendline to take a short position if price action breaks the trendline. We ve set our stop at 35 pips and used 2 lots as before. In this scenario we must also consider an additional external input parameter which is the * Trade_Break_On_Touch if this is set to true the system will execute the trade when the bid price instantaneously breaks below the trendline minus the sensitivity value in this case 2 pips. In reality it would be pretty foolish to place a break trade with such a tight sensitivity value it would be much better to increase the sensitivity to something like 20 pips which gives us a much higher probability of the break having follow through to the downside. NOTE: If you have multiple strategies running on the same chart and you want to place a break trade with a different sensitivity setting to the other trading strategies it would be better to run this special case scenario on a separate chart to avoid upsetting the sensitivity settings for the other trendlines. Trade_Break_On_Touch is now obsolete as traders can embed Break commands within the trading syntax for each trendline. Please see supporting update document.

8 FX AlgoTrader Gold Automated Trendline Trading System Trade Entry Requirement Functionality Updated 24/10/2012 Pre-requisites. Trendlines must be drawn using the MT4 trendline tool. Horizontal and Vertical lines are not monitored by Gold. Trendline must be configured for Gold automation minimum order syntax is:- o Direction command eg Buy / buy / Sell / sell (case is not important) o Defined stop loss - eg. SL=20 or sl=20 (case is not important) o Defined positions size - eg. Lots=1.0 or lots=0.5 (must be 3 numbers where the point counts as a number) Command syntax must be entered in trendline description field. Gold Expert Adviser must be loaded on the chart with DLL and access to external functions enabled.

9 Long Order Scenarios Scenario 1 Buying when price action is within trigger zone around a configured trendline. Entry Requirements:- Pre-requisites met Command syntax does not contain Break break or BREAK commands Bid price is within trigger zone around the trendline the trigger zone is defined by the Sensitivity parameter in the Gold external input parameters the default value is 2 ie +/- 2 pips above and below the trendline. Current time is later than the last order time plus the Trendline Order Interval default setting is 1 which corresponds to 1 minute. Close of previous candle must be above/higher than the trendline

Scenario 2 Buying when price action touches an area of resistance momentarily Entry Requirements:- Pre-requisites met Command syntax contains Break[t] or break[t] or break[t] or Break[T] BREAK[t] or

10 Scenario 2 Buying when price action touches an area of resistance momentarily Entry Requirements:- Pre-requisites met Command syntax contains Break[t] or break[t] or break[t] or Break[T] BREAK[t] or BREAK[T] command Current bid price is greater than the trendline Current time is later than the last order time plus the Trendline Order Interval default setting is 1 which corresponds to 1 minute. Close of previous candle must be below/lower than the trendline

Scenario 3 Buying when price action breaks through an area of resistance and closes within a defined range Entry Requirements:- Pre-requisites met Command syntax contains Break[cXX-YY] or

11 Scenario 3 Buying when price action breaks through an area of resistance and closes within a defined range Entry Requirements:- Pre-requisites met Command syntax contains Break[cXX-YY] or break[cxx-yy] or BREAK[cXX-YY] or Break[CXX-YY] or break[cxx-yy] or BREAK[CXX-YY] command Where XX & YY represent pips eg Break[C02-10] Current bid price is greater than the trendline Current time is later than the last order time plus the Trendline Order Interval default setting is 1 which corresponds to 1 minute. Close of previous candle must be above/higher than the trendline and be within the XX-YY parameters in the break code syntax above Close of candle prior to break candle must be lower than the trendline

12 Scenario 4 Buying when price action breaks through an area of resistance and closes above the trendline. This is very similar to scenario 3 except the trade is executed irrespective of where the price closes (providing it closed above the trendline) Entry Requirements:- Pre-requisites met Command syntax contains Break[c] or break[c] or BREAK[c] or Break[C] or break[c] or BREAK[C] command Current bid price is greater than the trendline Current time is later than the last order time plus the Trendline Order Interval default setting is 1 which corresponds to 1 minute. Close of previous candle (period 1) must be above/higher than the trendline Close of candle prior to break candle (period 2) must be below/lower than the trendline

Short Order Scenarios Scenario 5 Selling when price tests a defined resistance level Entry Requirements:- Pre-requisites met Command syntax does not contain any Break commands Bid price is within

13 Short Order Scenarios Scenario 5 Selling when price tests a defined resistance level Entry Requirements:- Pre-requisites met Command syntax does not contain any Break commands Bid price is within trigger zone around the trendline the trigger zone is defined by the Sensitivity parameter in the Gold external input parameters the default value is 2 ie +/- 2 pips above and below the trendline. Current time is later than the last order time plus the Trendline Order Interval default setting is 1 which corresponds to 1 minute. Close of previous candle must be below/lower than the trendline

Scenario 6 Selling when price action breaks through an area of support momentarily touch break Entry Requirements:- Pre-requisites met Command syntax contains Break[t] break[t] break[t] Break[T]

14 Scenario 6 Selling when price action breaks through an area of support momentarily touch break Entry Requirements:- Pre-requisites met Command syntax contains Break[t] break[t] break[t] Break[T] BREAK[t] or BREAK[T] command Current bid price is less than the trendline Current time is later than the last order time plus the Trendline Order Interval default setting is 1 which corresponds to 1 minute. Close of previous candle must be above/higher than the trendline

Scenario 7 Selling when price action breaks through an area of support and closes below this level in a defined range Entry Requirements:- Pre-requisites met Command syntax contains Break[cXX-YY] or

15 Scenario 7 Selling when price action breaks through an area of support and closes below this level in a defined range Entry Requirements:- Pre-requisites met Command syntax contains Break[cXX-YY] or break[cxx-yy] or BREAK[cXX-YY] or Break[CXX-YY] or break[cxx-yy] or BREAK[CXX-YY] command Where XX & YY represent pips eg Break[C02-10] Current bid price is less than the trendline Current time is later than the last order time plus the Trendline Order Interval default setting is 1 which corresponds to 1 minute. Close of previous candle (period 1) must be below/lower than the trendline Close of candle prior to break candle (period 2) must be above trendline

16 Scenario 8 Selling when price action breaks through an area of support and closes below this level Entry Requirements:- Pre-requisites met Command syntax contains Break[c] or break[c] or BREAK[c] or Break[C] or break[c] or BREAK[C] command Current bid price is lower than the trendline Current time is later than the last order time plus the Trendline Order Interval default setting is 1 which corresponds to 1 minute. Close of previous candle (period 1) must be below/lower than the trendline Close of candle prior to break candle (period 2) must be above/higher than the trendline

Data Sheet for Trendline Trader Pro

Data Sheet for Trendline Trader Pro Introduction Trendline Trader Pro is a hybrid software application which used a JavaFX based interface to communicate with an underlying MetaTrader MT4 Expert Advisor.