Belkaglazer is a complex 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. The EA has a modular structure.
- The EA can trade momentum, breakout, counter-trend, mean-reversion, scalping strategies depending on settings or set-files;
- It supports Limit/Stop and Market orders and works with Instant and Market execution;
- The EA is designed in a clear and logical way and provides tools for creativity and research. All settings/strategies are fully customizable;
- The EA can use different types of MM. Author’s strategies do not use Martingale, grid, hedging and other risky Money Management techniques, every trade is protected by stop-loss;
- Backtests with 99.9% modeling quality and variable spread. Backtest results match live trading;
- The EA automatically adjusts for 4 and 5 digit quotes.
- Breakout [BR] is the price movement through certain support/resistance levels that prevent prices from moving lower/higher. The breakout strategy typically enters the market during periods of high volatility with a buy/sell pending stop order that is placed at a horizontal resistance/support level. Strong price movement may be a trigger for a breakout. Breakout[BR] trading is a form of Momentum[M] trading.
- Momentum [M] is a general class of strategies based on the continuance of current trends. The idea behind this strategy is that after a significant short term movement the price will continue to move in the given direction until it loses strength. This strategy consists in buying/selling an asset after an unusually large upward/downward price movement. As a rule, it opens a position with a market order executed in the momentum direction.
- Mean Reversion [MR] is a general class of strategies based on the assumption that after a strong movement the price will revert back towards the mean (average value). This strategy is often referred to as counter-trend or reversal trading. It consists in selling/buying an asset after an upward/downward price movement. The strategy enters the market in the opposite direction with a pending limit or market order when the price comes close to a support/resistance level.
- Price Channel [PCh] model uses horizontal support [Low] and resistance [High] levels based on the minimal/maximum prices (extrema) confirmed during a certain period of time. The PCh model can be used as a breakout or mean-reversion strategy. It is possible to set/adjust the offset of the High/Low levels for optimization purposes. The optimal TP/SL levels for the MR/M are in the middle of the price range (HL/2 level).
– Inclined Lines (PCh Mode) [added in 1.79 version of the EA]. In this mode, the EA constructs two inclined lines (support and resistance levels) based on two confirmed extrema, forming a price range. The ‘ExpirationBars‘ parameter determines the maximum lifetime of an inclined line since its construction.
- Pivot model uses pivot points to determine critical support and resistance levels. The EA calculates central line (CL) at a 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 model can be used for building a breakout or mean-reversion strategy.
- Price Action [PA] model is based on the analysis of price movements over a certain period of time. The model identifies simple M/MR patterns and can be used to build a seasonal trading strategy.
Filtering is a way to improve the quality of trades and the performance of a strategy. 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). Unfortunately, filters can’t turn a losing strategy into a winning one. Therefore, a good strategy should be profitable without filters.
Using too many filters may result in over-filtering and curve-fitting!
The following filters can be used:
- Trend filters
Trend filters allow a strategy to open trades only in the direction of an overall trend, filtering out losing trades against the trend.
Methods: Daily EMA, Daily HL/2;
- Volatility filters
Volatility filter will ignore signals if the volatility is too high or too low.
Methods: Intraday (width of the local price range), Daily (based on the daily ATR);
- Pivot/Range/Shadow/Hurst/RSI filters might help find good market conditions.
The buy/sell signal generated by a trading algorithm (model+filters) is executed as a limit/stop/market order.
Open Positions Management
The trading system manages open positions using take profit, stop-loss, time-stop, trailing-stop and other tools.
The Belkaglazer Researcher may help you with ideas for creating a new trading strategy.