Belkaglazer is a universal EA allowing traders to build diverse trading algorithms and create custom FX market research.
- The EA is based on 3 models: PriceChannel [PCh], Pivot, PriceAction [PA]. The models have a clear logic, and the EA has a modular structure.
- The models can be used in conjunction with the following strategies: breakout [BR], momentum [M] or mean-reversion [MR].
- The EA is designed to give a huge scope for creativity and research.
- It supports limit/stop and market orders. It works with both, Instant and Market execution types.
- No martingale, no grid, no hedging, no scalping and no dangerous elements of Money Management are used. Every trade is protected by stop-loss.
- It has been backtested with over 8-year tick data and 99% modeling quality with real variable spreads. Back test results match live trading.
- Breakout [BR] is a price movement through support/resistance technical levels, which hold the prices from moving higher or lower. The Breakout strategy enters the market with a buy/sell stop or market order when the price moves through the technical level. A buy stop order is placed at a resistance level above the market price. A sell stop order is placed at a support level. Beakouts can be triggered by a strong price movement.
- Momentum [M] is the rate of price acceleration. The idea behind this strategy is that the price is more likely to move in the same direction for some time before it change direction. This strategy consists of buying/selling a pair after large bullish/bearish price movement. It can open a position with a market order on the formation of a new candle. The market order will be executed in the momentum direction.
- Mean Reversion [MR] is the assumption that the price tends to change direction and move back toward the mean (average). This strategy is often referred as counter-trend or reversal trading. On the contrary of the previous strategies mentioned above, this strategy consists of selling/buying a pair if it estimates that the price movement was bullish/bearish in the recent past. It enters the market when the price approaches a support/resistance level, (or after a large movement in price) with a buy/sell limit or market order.
- Price Channel [PCh] model is based on the horizontal support [Low] and resistance [High] levels. The EA determines the support/resistance levels based on a confirmed minimal/maximum prices. The EA can adjust offset of high/low levels for optimization purposes. The PCh model can be used as a breakout (EURUSD, GOLD) or mean-reversion strategy (night-time AUDNZD, AUDCAD, EURNZD). The optimal take-profit/stop-loss levels for the MR/M strategies are the middle of the range (HL/2 level).
- Pivot model uses pivot points to determine critical support and resistance levels. The EA calculates central line (CL) at specified time (Initial Hour) using the following formula: CL = (Highest Price (Period)) + Lowest Price (Period) + Close Price At Specific Time) / 3. Support levels (SL) and resistance Levels (RL) are then calculated off this central line: SL = CL – a Percentage of the Daily ATR (Average True Range); RL = CL + a Percentage of the Daily ATR. The Pivot model can be traded as BR/MR strategy.
- Price Action [PA] model is based on the analysis of price movement at a specified time and/or place. The Model identifies simple M/MR chart patterns. The PA model can be used to build a seasonal trading system. The PA model can be traded as M/MR strategy.
Filtering of trades is a way to improve the performance/quality of entries.
Filtering reduces the number of trades and increases the profit factor. The filtered strategy has a higher Average Trade (Total Net Profit / Number of Trades). This value gives the average profit of all trades.
A good strategy must be profitable without filters. Filters can’t turn a losing strategy into a winning one.
Don’t use too many filters. It may result in over-filtering and curve-fitting!
Trading signals can be filtered with the following filters:
- Trend (or regime) filters
Trend filter is a way for the system to open a trade in the direction of the overall trend, filtering out more losing trades that are against the trend.
Filtering methods: Daily EMA (Exp. Moving Average), Daily HL (High/Lows)/2;
- Volatility filters
Volatility filter will ignore signals if the volatility is too high or too low. Volatility filters have a large influence on the strategy performance.
Filtering methods: Intraday (local, short-term) – width of the price range [H-L], Daily (mid-term) – ATR;
- Pivot/Range/Shadow/Hurst/RSI filters
Those filters might help find the most favorable market condition.
When a signal is generated by the trading algorithm, it will be transformed into a limit/stop/market order which will be executed on the FX market, by your broker.
Control and manage open positions
The trading system controls open positions by using take profit, stop-loss, time-stop, trailing-stop and other tools.
The market research tools will help you to getting ideas on how to create a new trading system.