Radius: Off
km Set radius for geolocation

EasyTakeProfit Expert Advisor – a tool for setting goals

EasyTakeProfit Expert Advisor – a tool for setting goals

There is an opinion that finding an exit point is much more difficult than an entry point. It is important not only to find a signal, but to correctly place the stop loss and take profit. And here difficulties arise. There are no unified rules for placing these orders – there are recommendations, different approaches, but this point remains at the discretion of the trader. Someone is guided by technical tools, someone – by emotions. The EasyTakeProfit Expert Advisor helps to determine the zones of the most optimal placement of stops and take profits.

EasyTakeProfit – auxiliary adviser for take profit and stop

The stop setting has two extremes – too short, the price knocks it down with little volatility. Or too long – then the price with one strong movement can take down most of the deposit.

For example, such a long shadow can close a deal ahead of schedule on a strong downward movement.

The far location of the stop reduces the likelihood of its accidental contact. Together with it, a short take profit increases the chances that the price will close in plus before it touches the stop. On the other hand, a long stop is a violation of risk management. The so-called “spikes” – long shadows – may not be a correction or a game of market makers, but a trend reversal. The market also likes to test key resistance and support levels.

In theory, stops should be placed outside the zones of possible contact, take profits – on the contrary, before the beginning of these zones. Analysis of statistics showed that the ATR indicator defines the zone of possible price reversal best of all:

  • The probability of a stop being touched is drastically reduced if a multiplier of 7 – 12 is used.
  • The probability of reaching take profit increases when using a multiplier of 4 – 8.
READ  Multi Regression Scalping Strategy

Based on this theory, an auxiliary indicator EasyTakeProfit is built. It calculates and plots zones on the chart that are the most optimal in terms of placing stops and take profits.

EasyTakeProfit is installed in MT4 via the data directory. After restarting the platform, do not forget to enable the option to use Expert Advisors in the “Service/Settings/Expert Advisors” menu. If the adviser is working, a smiling smiley will appear in the upper right corner.

The Expert Advisor is launched only on the open market. In the upper right corner of the button is the theoretical opening of positions. When pressed, the EA shows guidelines for setting stops and take profits. For example, the screen above shows zones for a long position. They are built on local flat zones and extrema.

For a short position, the construction principle is somewhat different. The orange zone for setting a stop is built on the basis of the ATR coefficient.

Conclusion. EasyTakeProfit is an auxiliary indicator that automatically calculates the probable stop loss and take profit zones. It works best on timeframes from H1 and higher. It has practically no input parameters – there are auxiliary settings for setting alerts, visual display, etc. Orders are recommended to be placed inside the displayed zones. The indicator is not ideal, it works poorly in moments of fundamental volatility. But it works well in trending or flat markets.

About Eric R. Brinkley

CEO Fxbotreview.com Algotrader. Blogger. I write interesting content, do content with you, and also maintain a website with independent reviews of forex software. Trading robots, Indicators etc..

Comments 0

Leave a Reply

Your email address will not be published. Required fields are marked