User Guide · Using MetaTrader. Virtual Private Server o What is a VPS? o Why do you need a VPS? o...

USER GUIDE

01

Using MetaTrader Virtual Private Server

o What is a VPS? o Why do you need a VPS? o Which VPS provider to choose

MetaTrader Helper

o Navigation o Global Settings

Back-testing

o Important Considerations

04 Installer / Authentication

Allow DLLs Installer

Dependencies

06

Trend Divergence

System Overview o Introduction o Divergence Variants

Indicator

o Inputs o Notes

Dashboard

o Overview o Dashboard Layout o Inputs o Important Considerations

Table of Contents

14

Trend Bias System Overview

o Introduction o Algorithm Components

Indicator

o Inputs o Trading Technique

Dashboard


21

Volume Insight / Divergence

System Overview o Introduction o Volume Divergence Variants

Indicator

o Inputs o Notes

Dashboard


30

Triangular Moving Average (TMA) System Overview

o Introduction

TMA o TMA Bands Overview

TMA-CD

o TMA Convergence/Divergence Overview TMA-CH

o TMA Ranging Channel Helper Overview

Table of Contents

35 Price Action Indicator System Overview

o Introduction

Inputs

36

Grid Expert Advisor System Overview

o Introduction

Inputs o In-depth explanation of EA inputs

Important Considerations

o Grid Trading Advice o Live Operation of EA

Table of Contents

1

Using MetaTrader Virtual Private Server (VPS)

What is a VPS?

A virtual private server, also known as VPS, is a very powerful tool for Forex trading. It is a web hosting, which utilizes a data center to allow traders, various businesses and companies to trust their livelihood to a safer, more reliable, remote computer. With a direct ISP connection to their virtual private server, traders use better hardware to better control their trading operations, without any interruptions. Shared hosting allows to place a website or utilize a trading software on your VPS, while it also suffices the needs of other clients. A VPS provider charges the consumers a monthly fee for a virtual private server, this way covering the costs and expenses of the server. A VPS differs from shared hosting in that you do not share your designated resources with other users, because every individual receives a separate, partitioned part of the server with its storage, RAM, and an operating system. The cost of a virtual private can differ depending on the specifications offered.

Why do you need a VPS?

A VPS allows you to trade 24/7, without any interruptions, utilize a high-speed internet, and even completely automate your trades, by designing an algorithm, which reflects your trading strategy. You have access to your VPS from anywhere, as long as you have an internet connection. This incredible flexibility allows you to check and monitor your trades from any location. Because your virtual private server is in a different location, your automated trades will continue even during a power outage, which is the main flaw of a fully automated trading system based in your home. You can even completely separate yourself from technology, and your trades will continue to be executed. For more successful traders, the security of their trades is a major concern. A VPS has an extremely high level of security. Even the hardware of the server is constantly being checked to guarantee the highest level of functionality and security.

Which VPS provider and package to choose?

It is imperative to ensure you select the right VPS provider, for your specific broker. Take IC Markets, for example. IC Market trading servers are located in the Equinix NY4 data center, and thus, we must ensure our VPS is similarly located. In this particular case, fxvm.net offer a suitable VPS package, with an average latency of 2ms, a considerable improvement from the 120ms average on local machines.

FXVM Sign-Up Link: https://fxvm.net/

https://fxvm.net/portal/aff.php?aff=6457

2

MetaTrader Helper

Placement of EAs, Indicators and Presets

If you wish to use externally sourced MetaTrader plugins, such as our own trading systems, please follow the steps below to ensure they are correctly located in the terminal’s directory.

From the main MetaTrader terminal, navigate to File->Open Data Folder->MQL4/MQL5.

EAs and Indicators will have an ex4/ex5 extension, and should then be placed in the “Experts” or “Indicators” folder.

Preconfigured setting files, with a set extension, should then be placed in the “Presets” folder.

Automated trading permission

By default, MetaTrader will disable Experts from automated trading. This will prevent any of our EAs from placing any trades. To remedy this, navigate to Tools-> Options. Under the “Expert Advisors” tab, check the “Allow automated trading” box. The nested boxes are safety nets, enable/disable at your desire.

Upon loading an EA to a chart, there should be a visible “smiley” face on the top right of the chart, as indicated below. If the emoticon is frowning, please check the settings again.

Opening charts and applying EAs/Indicators/Presets

To the right of your terminal, you should see some currency pairs in various colours under the header of “Market Watch”. If this is not the case, navigate from the top toolbar View->Market Watch.

Then, right click on any currency pair, and click “Chart Window”.

Under the “Market Watch”, there should be a “Navigator” panel. If not navigate to View->Navigator. From within this panel, under “Expert Advisors” and “Indicators” you should see all of the available files. If you don’t see it, right click on something in the navigator panel, and hit “Refresh”.

To load a Preset, load the EA/Indicator, then switch to the “Inputs” tab. Click “Load”, and the Preset files should appear.

3

Back-testing

Access the Strategy Tester

The “Strategy Tester” is accessible by either hit CTRL+R, or navigating to View->Strategy Tester.

MetaTrader 4 Specific Issues

Insufficient Data

Upon an initial attempt at back-testing a system, you may have insufficient data to test over a given period. This data comes directly from your trading broker, and will vary according to each specific broker. In order to gain as much data as possible, navigate to Tools->History Center. Select a symbol to worth with, and open the “1 Minute” data. Scroll down to the last result, select the row, then hit “Edit”. Change the values as below, then hit “OK”. Click “Download”, then “Close”. Proceed to open the 1 Minute chart for the modified symbol, and scroll back as far as possible. This will then hopefully load as much data as possible from the broker server. Following this, revert back to the History Center and delete the false row modified earlier on.

Fixed Spread and Data Quality

The Strategy Tester in MT4, with its default configuration, is not sufficiently reliable. In order to produce the most accurate reports possible, it would be wise to test using a third party testing plug in, such as Tick Data Suite. TDS will be able to use accurate tick data, and also emulate the variable spread and slippage. Utilising TDS will also permit a wider data range for testing.

https://eareview.net/tick-data-suite

4

Installer / Authentication

All of our products are authenticated through our server. In order for the product to be utilised, two steps must be followed to allow MetaTrader to perform the authentication steps.

Allow DLLs The usage of DLLs must be permitted in order for the activation process to occur.

To allow DDLs, from the MetaTrader terminal, navigate to Tools->Options->Expert Advisors. From here, please check the “Allow DLL imports” box.

Installer

XYZ

5

Dependencies

Our indicators rely on server-side authentication. In order for the process to occur, three files must be placed in the correct directory. If using our installer, these will be automatically setup for you. The three files are libmysql.dll, MQLMySQL.def and MQLMySQL.dll. They must all be placed in the Libraries directory. You can access this from within the MetaTrader Terminal via

File->Open Data Folder->MQL4/5->Libraries.

Once the files are in the correct directory, as indicated above, authentication can occur and our products can be utilised throughout your subscription.

Please note, if the files above are not properly loaded, our products will not operate at all.

6

Trend Divergence System Overview

Introduction The oscillator is based upon a zero-lag cycle phase implementation on price movement. A superimposed cyclical trend analysis is performed to produce an exact synchronization with the trend cycle component in the data. The algorithm will assess the significance between slope and each data point of the trend cycle period and plot the divergence signals as arrows.

Divergence Variants Our in-house developed divergence indicator will plot four different divergence variations.

Classical Bullish Divergence

- Price is making lower lows (LL), but the trend data is making higher lows (HL) - Following the signal, if the trend data fails to make a new low, it is likely that the price

will rise, as price and momentum are normally expected to move in line with each other.

7

Classical Bearish Divergence

- Price is making higher highs (HH), but the trend data is making lower highs (LH)

Hidden Bullish Divergence

- Price is making higher lows (HL), but the trend data is showing lower lows (LL)

Hidden Bearish Divergence

- Price is making lower highs (LH), but the trend data is making higher highs (HH)

8

Indicator

Inputs

Trend Length:

- “Look-back” for the cycle phase. - This is not the same as a typical averaging period. Small changes in the length can vary

the output significantly.

Draw Price Action Trend Lines:

- Option for drawing the divergence price action trend lines on the main chart. - Lines are drawn as Objects on the chart

Alerts:

- If enabled, upon a newly confirmed divergence signal, a notification alert will be presented to the terminal.

Enable Classical Divergences:

- Option will permit the identification and drawing of Classical Divergences - Classical divergence setups are drawn as solid lines - Ideal for stop and reverse trading

Enable Hidden Divergences:

- Option will permit the identification and drawing of Hidden Divergences - Hidden divergence setups are drawn as dashed lines - Ideal for trend continuation trading

Notes

Trading

Trading every signal provided by the indicator will likely result in a loss-making strategy. It is imperative to consider other market factors. For divergence trading, key support and resistance levels will help filter erroneous signals. For the divergences, additional filtering may be suitable based upon the number of candles spanned, the price action difference.

Hidden Buffers

We have programmed four hidden buffers to aid any automation from the indicator.

9

Divergence Type:

- Buffer Index = 3 - Output Values:

o 1 = Classical Bullish Divergence o 2 = Hidden Bullish Divergence o 3 = Classical Bearish Divergence o 4 = Hidden Bearish Divergence

Price Action Difference:

- Buffer Index = 5 - On the signal candle, this buffer will hold the absolute difference between the two

divergence price points. - Low price differences are used for bullish divergences, and high prices for bearish

divergences.

Divergence Span Length:

- Buffer Index = 6 - On the signal candle, this buffer will hold the number of candles for which the divergence

pattern spans across.

10

Dashboard

Overview Divergence signals are produced at a lesser frequency than other indicators. For this reason, it is crucial to monitor a large number of symbols to find possible trading opportunities. We have designed a dashboard to scan as many symbols as the user desires, and provide further information about the signal, extending beyond the scope of the divergence signal.

Our dashboard will alert you of any new signals, but will also provide:

- Candle index for which the signal was produced o 0 is always referenced as the current candle

- Number of candles for which the divergence spans across - Lag reduced indication of Trend Direction - Zero lag prediction attempt based upon Cyclical Price Action analysis

The dashboard is fully interactive, allowing for an easier trading experience. Each symbol has an associated button, for each selected time frame. Clicking the button instantly opens the chart, saving the hassle of scrolling through the Market Watch to find the symbol.

Dashboard Layout We have designed our dashboard to accommodate the average display, but due to MetaTrader’s display infrastructure, we are unable to automatically adapt to every single display, by default, whilst ensuring an efficient spacing matrix.

If your dashboard appears incorrectly, i.e. too congested/spaced, then please adjust the X Shift, Y Shift, Symbol Button Size, Line Height inputs. For example, using a 4k display, we have found the setup below to offer better results, but will likely need to be tampered with for individual displays.

11

Inputs

Symbols:

- By default, this is set to empty. When empty, the dashboard will use all symbols, actively selected in the “Market Watch”.

o The symbols within the “Market Watch” can be viewed by navigating within MetaTrader from View->Market Watch, or by hitting CTRL+M

- If manual symbol selection is to be used, a strict formatting scheme must be followed. o The symbols must be comma separated, and have no white space and no

quotation marks o For example, if the dashboard is only to scan GBPUSD, AUDUSD and XAUUSD,

the input would be GBPUSD,AUDUSD,XAUUSD o If your broker has modified symbols with any prefixes or suffixes, these must

also be entered

Search Period:

- Divergence patterns will never appear on the current candle, or the preceding candle. - A pattern will only appear, at the very earliest, on the second candle. - The search period specifies, from the second candle inclusive, looking back, how many

candles should be scanned to check for a pattern.

Classic Divergence / Hidden Divergence:

- The dashboard will be restricted to only display the specified variant of divergence.

Trend Length:

- Main indicator value for signal production. - “Look-back” for the cycle phase. - This is not the same as a typical averaging period. Small changes in the length can vary


Fast Trend Length:

- Length for additional trend direction filter. - Functions similar to a typical averaging period.

Price Action Cycle Period:

- The number of bars in cyclic price action filter

Price Action Cycle Bandwidth:

- The tolerance of the measurement of the price action cycle period.

12

Alerts On:

- Enables push notifications to the terminal for divergence patterns - Required for Mobile/Email alerts

Mobile Push Alerts:

- Enables push notifications to your mobile device. - For this feature to operate, you must have the MetaTrader mobile app installed on your

device, and you must enter the device’s MetaQuotes ID into the main MetaTrader terminal, under Tools->Options->Notifications.

Email Alerts:

- Enables email notifications. - For this feature to operate, you must have the MetaTrader email settings correctly

configured under Tools->Options->Email.

Symbols Per Column:

- Each MetaTrader terminal is of a different size, depending on the user’s individual settings.

- To adjust the number of symbols, per column, within the dashboard, change this input.

X Shift / Y Shift / Symbol Button Size / Line Height / Text Size:

- MetaTrader charts are generated from predefined pixel locations. Unfortunately, due to different monitors having different PPI (Pixels Per Inch) counts, it is impossible to generate a dashboard catering to every monitor, whilst also being efficient with spacing.

- By default, the dashboard layout matrix is designed for displays with an average PPI count, in an attempt to cover as many displays as possible.

- If for example, your display has a higher PPI count, then the size of the buttons will be smaller than necessary, and the information display will be inconvenient.

Use x timeframe:

- Enables scanning of the specified time frame. - If no timeframe is set to true, the dashboard will not load. - Please do not select more than 3 timeframes.

13


Data availability

The dashboard will function improperly if there is insufficient data for a specified symbol. To overcome this issue, ensure that every scanned symbol has enough bar data, for the specific timeframe being scanned. Once a chart has been loaded, ensure that the alphaheim; Trend Divergence indicator can be loaded, and correctly displays signals. Once this process has been complete, it the dashboard will never have further issues with regards to data.

Loading Times

Upon initial loading of the dashboard, the layout matrix, including the buttons, should appear very quickly. Please keep a track of the “Journal” and “Experts” tab under the Terminal Toolbox. If the layout does not appear within 10 seconds, and nothing is being updated in the tabs, then we recommend closing the chart, and attempt reloading.

After the layout has loaded, the loading time of the signals will vary, according to which MetaTrader version is being used, and how many scans are being performed. For MetaTrader 4 uses, please be patient, and avoid interrupting the terminal. MT4 only operates on a single core, and will take approximately 25 seconds to load 45 symbols across 3 different timeframes. Whilst the scans are being performed, you will be unable to use the terminal. If scanning timeframes under M5, please do not enforce a large number of symbols.

The dashboard will only update upon the initial load, and then for the opening of every new candle for the shortest timeframe being applied.

Our layout matrix has been designed to only handle a maximum of 3 timeframes for any given dashboard. We have designed this restriction to keep computation times low. If you would like to load more than 3 timeframes, please open another instance of the dashboard, on another chart.

14

Trend Bias System Overview

Introduction What is the Trend Bias Indicator?

We have developed a proprietary points-based scoring mechanism to help identify the current market trend, and possible trend continuation. Our algorithm encompasses several different factors key for prediction, whilst also ensuring that the indicator does not lag.

The indicator will oscillate between +6 and -6, to visualise the direction bias at any given moment. By utilising a non-lagging approach, the key components of the algorithm adjust to big swings within the market.

Algorithm Components

Our trend bias indicator has been constructed using three core components.

1) Superimposed Cyclical Trend Analysis - Zero lag - Exact synchronization with the Trend cycle component in the data - Significance between slope and each data point of the trend cycle period

2) Normally distributed Trend Direction (and extrema) - Heavily reduced lag - Conversion of non-normally distributed market price

3) Cyclical Price Action Analysis - Negative lag - Cyclical turning points in price action - Negative group delay on first harmonic output of price data

15

Indicator

Inputs Trend Cycle Length: The number of bars in the cyclic trend component.

Trend Direction Length: The number of bars in the normalised trend direction component.

Price Action Cycle Period: The number of bars in cyclic price action component.

Price Action Cycle Bandwidth: The tolerance of the measurement of the price action cycle period.

Trading Technique

Zero/Threshold Cross

A possible trading strategy may be to enter in the direction of the crossover with respect to the threshold value. As this is a lag reduced indicator, crosses will be frequent on lower time frames.

16

Gradient Shift at Extremum’s

Another possible implementation is to trade a shift in gradient, provided the signal has been at an extremum for a specified period. In the example above, the signal had been fixed at +6 for 5 periods, then shifted downward.

Additional Filter

The cumulative output of this indicator reveals crucial information about the possible future outcome of a given symbol. Whilst it is impossible to predict where the market will go, our Trend Bias indicator provides a useful insight into the strength of the possible outcome, helping filter false signals from other trading systems, whilst also reinforcing accurate signals.

17

Dashboard

Overview The trend bias indicator gives a useful insight into the symbol’s general bias on a specific timeframe, but it also imperative to get a larger overall view of the symbol’s market bias. Our Trend Bias dashboard provides a larger overview of the entire market through 4 colour codes, dependent on a user defined strength threshold.




18

Inputs Symbols:






also be entered

Trend Length:

- Main indicator value for signal production. - “Look-back” for the cycle phase. - This is not the same as a typical averaging period. Small changes in the length can vary


Fast Trend Length:






Strong Bias Threshold:

- Absolute threshold for strong bias signals. - For example, if set to 4, any values greater than, or equal to 4, will present a Strong

Bullish signal. Similarly, any signals below, or equal to -4, will present a Strong Bearish signal.

Alerts On:


Mobile Push Alerts:

- Enables push notifications to your mobile device.

19

- For this feature to operate, you must have the MetaTrader mobile app installed on your device, and you must enter the device’s MetaQuotes ID into the main MetaTrader terminal, under Tools->Options->Notifications.

Email Alerts:



Symbols Per Column:







Use x timeframe:

- Enables scanning of the specified time frame. - If no timeframe is set to true, the dashboard will not load. - Please do not select more than 3 timeframes.

Important Considerations Data availability


Loading Times

Upon initial loading of the dashboard, the layout matrix, including the buttons, should appear very quickly. Please keep a track of the “Journal” and “Experts” tab under the Terminal

20

Toolbox. If the layout does not appear within 10 seconds, and nothing is being updated in the tabs, then we recommend closing the chart, and attempt reloading.



Our layout matrix has been designed to only handle a maximum of 3 timeframes for any given dashboard. We have designed this restriction to keep computation times low. If you would like to load more than 3 timeframes, please open another instance of the dashboard, on another chart.

21

Volume Insight / Divergence System Overview

Introduction Volume analysis plays an imperative role in the determination of a market’s bias. By inspecting the flow of money in a particular direction, it is possible to project upcoming trends and filter erroneous trades against an asset’s overall sentiment.

Typical volume indicators such as the On-Balance-Volume (OBV) provide a useful insight, but lack a significant bias indication and are extremely choppy. Our Volume Insight indicator solves this issue by providing a bias for the flow of money within the asset over a defined period, and also smooths out the cumulative differences to filter out the noise. Application of our smoothing algorithm warrants our Volume Divergence indicator to produce high quality trading signals, with a significant edge over OBV divergences, a highly profitable system in itself.

Volume Divergence Variants Our in-house developed divergence indicator will plot four different divergence variations.

Classical Bullish Divergence

- Price is making lower lows (LL), but the oscillator is making higher lows (HL)

Classical Bearish Divergence

- Price is making higher highs (HH), but the oscillator is making lower highs (LH)

Hidden Bullish Divergence

- Price is making higher lows (HL), but the oscillator is showing lower lows (LL)

Hidden Bearish Divergence

- Price is making lower highs (LH), but the oscillator is making higher highs (HH)

22

Indicator

Inputs Volume Insight/Divergence Indicator Volume Period:

- “Look-back” period for the volume calculations. - Our indicator will inspect the cumulative volume accumulation, dependent on the

direction of movement.

Averaging Period:

- Averages the volumes over a defined period, alleviating choppiness.

Averaging Method:

- Averaging method.

Applied Volume (MT5 Only):

- Type of volume to be used for underlying calculations. - Forex assets typically utilise Tick Volumes, whereas equities typically utilise Real

Volumes.

Volume Divergence Indicator Enable Classical Divergences:

- Option will permit the identification and drawing of Classical Divergences - Classical divergence setups are drawn as solid lines - Ideal for stop and reverse trading

Enable Hidden Divergences:

- Option will permit the identification and drawing of Hidden Divergences - Hidden divergence setups are drawn as dashed lines - Ideal for trend continuation trading

23

Notes

Trading

Volume Insight Crossover

One possible trading strategy may utilise the faster movement in volume against a slower moving average of volumes. In the image above, a faster moving volume average is visualised with a green line, and the slower with a blue line.

Volume Divergences

Our volume divergence signals have a high predictive accuracy when utilised with the correct settings for a given asset and time frame. From above, two trading signals were provided on EURUSD H1, a classical bearish divergence and a hidden bearish divergence, both yielding highly profitable trades.

Volume divergences can be traded with higher accuracy by considerations of key support and resistance levels in conjunction with Fibonacci levels.

24

Ideal Trading Setup

Our recommended trading strategy has been derived from extensive stress tests and strategy curation. This strategy combines our unique indicators, and provides a refreshing approach to trading.

In the example above, a long position was placed on the open of the vertical green line.

Long Trade logic:

1) Bullish divergences on both Volume and Trend indicators, within x candles. In the case above, x was defined as 5.

2) The Trend Bias indicator is greater than, or equal to 0. For stronger confirmations it would have been possible to wait until the bias was strictly greater than 0.

3) Depending on the market conditions, a consideration may be provided to Fibonacci levels.

4) Stop-Loss placement can vary according to a trader’s preference. In the case above, the SL was placed at a recent swing low.

As evident from the magenta line, the maximum profit potential for this specific trade was 230 pips. On average, when utilising this strategy on higher timeframes, we have found setups to have an accuracy rating of 83%, whereby an accurate setup is defined as yielding a profitable trade with a Risk: Reward greater than 1. The maximum pip potential does have a relatively large variation, ranging up to 1500pips.

25

Volume Divergence Indicator Hidden Buffers

We have programmed four hidden buffers to aid any automation from the indicator.

Divergence Type:

- Buffer Index = 3 - Output Values:

o 1 = Classical Bullish Divergence o 2 = Hidden Bullish Divergence o 3 = Classical Bearish Divergence o 4 = Hidden Bearish Divergence

Oscillator Difference:


divergence extrema

Price Action Difference:


divergence price points. - Low price differences are used for bullish divergences, and high prices for bearish

divergences.

Divergence Span Length:

- Buffer Index = 6 - On the signal candle, this buffer will hold the number of candles for which the divergence

pattern spans across.

26

Volume Divergence Dashboard

Overview Divergence signals are produced at a lesser frequency than other indicators. For this reason, it is crucial to monitor a large number of symbols to find possible trading opportunities. We have designed a dashboard to scan as many symbols as the user desires, and provide further information about the signal, extending beyond the scope of the divergence signal.

Our dashboard will alert you of any new signals, but will also provide:

- Candle index for which the signal was produced o 0 is always referenced as the current candle

- Number of candles for which the divergence spans across - Lag reduced indication of Trend Direction - Zero lag prediction attempt based upon Cyclical Price Action analysis




27

Inputs Symbols:






also be entered

Search Period:

- Divergence patterns will never appear on the current candle, or the preceding candle. - A pattern will only appear, at the very earliest, on the second candle. - The search period specifies, from the second candle inclusive, looking back, how many

candles should be scanned to check for a pattern.

Classic Divergence / Hidden Divergence:

- The dashboard will be restricted to only display the specified variant of divergence.

Volume Period:

- “Look-back” period for the volume calculations. - Our indicator will inspect the cumulative volume accumulation, dependent on the

direction of movement.

Averaging Period:

- Averages the volumes over a defined period, alleviating choppiness.

Averaging Method:

- Averaging method.

Applied Volume (MT5 Only):

- Type of volume to be used for underlying calculations. - Forex assets typically utilise Tick Volumes, whereas equities typically utilise Real

Volumes.

28

Fast Trend Length:






Alerts On:


Mobile Push Alerts:

- Enables push notifications to your mobile device. - For this feature to operate, you must have the MetaTrader mobile app installed on your


Email Alerts:



Symbols Per Column:







Use x timeframe:

- Enables scanning of the specified time frame. - If no timeframe is set to true, the dashboard will not load.

29


Data availability


Loading Times

Upon initial loading of the dashboard, the layout matrix, there may be a noticeable delay. Please keep a track of the “Journal” and “Experts” tab under the Terminal Toolbox. If the layout does not appear within a few minutes, and nothing is being updated in the tabs, then we recommend closing the chart, and attempt reloading. When utilising a large number of symbols and a notable number of timeframes, please be patient as there is a vast amount of data to be processed.



30

Triangular Moving Average (TMA) System Overview

Introduction What is the TMA?

The Triangular Moving Average (TMA) is a Moving Average that has been averaged again (i.e. averaging the average); this creates an extra smooth Moving Average line. Generally, moving averages are smooth, but the re-averaging makes the Triangular Moving Average even smoother and more wavelike.

The TMA is a weighted average of the last n prices (P), whose result is equivalent to a double smoothed moving average:

SMA = (P1 + P2 + P3 + P4 + ... + Pn) / n

TMA = (SMA1 + SMA2 + SMA3 + SMA4 + ... SMAn) / n

Redrawing

Our TMA system takes the foundations from above, and implements a central gravity shift. The central shift requires extrapolation of data, but there is no 100% exact way of extrapolating data. So, that extrapolated gap is a subject of changes no matter what extrapolation method one uses. For this reason, there is an unavoidable redrawing aspect to this system.

Once the indicators have been loaded on the chart, they will not redraw. If a trading signal appears for a closed candle, it will not disappear. However, if you load the indicators on a chart, and subsequently reload the indicators after a set interval, you will notice the data mismatches. Using the TMA bands in isolation will not warrant accurate trading signals, but with the additional alphaheim TMA indicators, accurate trading signals can be generated.

31

TMA [Bands]

Inputs Length: Averaging period for the TMA line.

Applied Price: Input data for the TMA calculations.

Signal Deviation: Standard Deviation from TMA line for arrow signals

SL Deviation: Standard Deviation from TMA line for possible Stop Loss placement

Arrow Formations A bullish arrow will appear when a candle has closed lower than the lower “Signal Deviation” band, and the subsequent candle is of a bullish nature. Until the bullish candle has been confirmed, the arrow may appear and disappear. Once the candle has been confirmed bullish, the arrow will not redraw. Conversely, a bearish arrow will appear when a candle has closed higher than the upper “Signal Deviation” band, and the subsequent candle is of a bearish nature.

32

TMA-CD

What is the TMA-CD?

The Triangular Moving Average Convergence/Divergence indicator will provide information very similar to a conventional MACD indicator. We have designed it to be a trend-following momentum indicator that shows the relationship between TMA’s of a symbol’s underlying price data. The TMA-CD is calculated by taking the delta of two specified TMA lines, one fast, and one slow.

Trade Filtering

The initial TMA-CD image shows the market in a clear downtrend, with false bullish trading signals. The TMA-CD indicator successfully prevents this trade from being taken. By applying a dual TMA-CD application, it is possible to see a wider picture of the general market trend. Profitable trades are likely to be incorrectly filtered, but a large majority of losing trades are also correctly filtered.

33

TMA-CH

What is the TMA-CH?

The Triangular Moving Average Channel Helper indicator will help identify if a symbol is ranging, or about to break out of range.

Inputs TMA Length: Averaging period for the underlying TMA line.

Applied Price: Input data for the underlying TMA calculations.

Signal Deviation: Standard Deviation from TMA line for formation of channel.

Min. Range (%): Ceiling percentage for a Ranging market classification.

Lookback Period (Max/Min): Search period, from the current candle, to seek highest and lowest points of the channel.

How does it work?

This indicator takes the current width of the TMA Bands and compares it to the maximum and minimum width over the “Lookback Period (Max/Min)”.

If the calculated percentage is less than or equal to ”Min. Range (%)”, then the histogram shows Purple, indicating a ranging market. If the calculated percentage is 2x the ”Min. Range (%)”, then the histogram shows Yellow, indicating the start/end of a range. If neither condition is met, the histogram shows Green for an upward channel in a non-ranging market, and Pink for a downward channel in a non-ranging market.

34

Trade Filtering

Utility of the TMA-CH indicator depends on an individual’s propensity to trade. The arrow signals from the TMA indicator may be better equipped to only trade in ranging markets, thus only taking trades when the channel helper is Purple. However, as evident from the image, trades in non-ranging markets can also be profitable, but will pose inherently riskier trades.

35

Price Action Indicator System Overview

Introduction Our price action indicator presents a simple histogram showing the relative position of price against a user defined moving average.

When price is above the selected moving average, the histogram will display a bullish bias. Conversely, when price is below the moving average, a bearish bias will be displayed.

Inputs

Averaging Period:

- The averaging period for the Moving Average.

Applied Method:

- Type of Moving Average applied to the data feed.

Applied Price:

- Type of data input for the Moving Average calculations.

36

Grid Expert Advisor System Overview

Introduction Grid trading is when orders are placed above and below a set price, creating a grid of orders at incrementally increasing and decreasing prices. An advantage of grid trading is that it requires little forecasting of market direction and can be easily automated. Major drawbacks, however, are the possibility of incurring large losses associated with running and/or closing multiple positions in a large grid. Our grid “Hedge Zone” implementation provides a theoretically lossless grid trading system, under certain conditions, and practically lossless if operated correctly.

The alphaheim Grid EA implements a bi-directional (or dual grid) system, to have both a long and short exposure at every grid level. For this reason, this EA is not FIFO compliant, and would not be suitable for US clients.

Our grid system has been designed with account growth in mind. There are no static definitions of lot sizes, not profit targets, and are calculated within the EA for a convenient trading system.

We have implemented this system with complete stealth. There are no limit orders, and no stop loss/take profit levels.

37

Inputs EA Magic Number:

- Each trade associated with the current instance of the EA will have this unique number associated with it.

Base Timeframe:

- When utilising Dynamic grid sizing (i.e. when Use Fixed Grid = False), the candles used to form the grid range will conform to this selected timeframe.

Augmented AB (%):

- Augmented Account Balance - A drawback of a grid trading system is relatively high drawdowns. - This set percentage will augment how much of the available balance/equity should be

allocated to an individual grid. - This will lower overall account drawdown and allow for multiple grids on the same

account.

Position Size Method:

- Determines the base lot size, for a regular grid level trade. - When set to Fixed, the Lot Size (Fixed) input will be utilised. - When set to Dynamic Balance Risk, the Balance Risk % (Base/Trade) input will

be utilised.

Balance Risk % (Base/Trade):

- This will determine the lot size for a specified trade. - This is not the total risk for a given grid. - For a given grid level, the EA will look at the distance between subsequent levels, and

calculate the lot size, such that a position with a SL of said distance, would lose the risk %.

Dynamic Targets:

- Statistical methods often require that EAs seek profit targets with reference to the initial starting balance, rather than the current account balance.

- When set to true, any target, e.g. TP, SL, will be based upon the current account balance, at the time of grid formation.

- When set to false, targets will be based upon the initial account balance, and will not grow/recede with the current account balance.

Account TP %:

- Upon initialisation of a grid, the EA will evaluate a profit target. Given the Augmented AB, the grid will seek a net profit of this percentage, inclusive of all commission and swap costs.

38

Max Number of TPs:

- After the EA has successfully logged a profit x times, the EA will be removed from the chart, and will seize to function until manually reloaded.

- To disable, set to 0.

Max Grid Loss TP Multiple:

- If the current loss for a given grid, exceeds the negative multiple of the TP target, all trades will be closed, and a new grid will be formed.


Receive TP Notification (Mobile):

- Enables push notifications to your mobile device for key grid metrics. - For this feature to operate, you must have the MetaTrader mobile app installed on your


Use Fixed Grid:

- If set to true, the grid will be created according to the defined fixed grid criteria. - If set to false, the grid will be dynamically created using either number of candles, or

time-based ranges.

Fixed Grid Range (Pips):

- For a fixed grid setup, this will define the range of the grid, from the top to the bottom.

Fixed Grid Step (Pips):

- For a fixed grid setup, the size of the gap between grid lines, in pips.

Rounded Fixed Grid:

- For a fixed grid, if set to false, the center line for the grid will take the current bid price, with subsequent levels surrounding. If set to true, the current bid price will be rounded to match the grid step level.

Dynamic Range Period:

- Assuming Use Fixed Grid = False, this input will determine how the grid range is formed.

- If set to 0, the range will be time based (Sessions), which are later defined. - Otherwise, this input will be the number of candles for which the EA will look back, to

determine the top and bottom of the trading range. - For example, if set to 100, and the Base timeframe is set to 1 Hour, then the EA will

calculate the range over the last 100 hours, at the point of grid creation.

39

Range Extension (Percentage):

- When utilising historical ranges, it is often the case that the market will respect the ranges, but extend a certain percentage, prior to ranging within the same period.

- When set, the candle/time-based range will be extended by the set percentage, around the center price.

- For example, when set to 200%, the grid will extend the range top by 100%, from the central line, and the range bottom by 100%, from the central line.

Number of Grid Lines:

- After computing the grid’s trading range, the number of grid lines will be determined by this input. Subsequently, given the range of the grid, and the number of lines, the distance between grid lines will equal Grid Range / Number of Grid Lines.

Minimum/Maximum Grid Interval (Pips):

- If the dynamically created grid attempts to enforce spacing under the minimum threshold. Or above the maximum threshold, the grid will not be drawn, and trading will not take place.

Maximum Open Risk:

- Our Open Risk calculation takes every trade currently open, and augments a stop loss, according to the grid boundaries, and either displays as a percentage of current account balance, or initial account balance.

- When set to 0, no trading restrictions will apply. - Otherwise, when the current open risk exceeds the maximum, the EA will not open

trades until open risk reduces. The closing of existing trades will operate as usual.

Use Shifting Grid:

- Only suitable for grids with fixed step definitions. - Utilising this feature will allow for an “Infinity Grid” implementation. - As the price shift up/down, the grid will move in the corresponding direction. - Typical bi-directional grid trading will occur within the lines. - If the grid shifts beyond a level that has an open position, the position will be

automatically closed.

Max Number of Trades:

- For every individual grid, if the number of trades for that singular grid exceeds x, the grid will close as soon as the grid is in profit or broken even.


40

Maximum Spread (Points):

- If the current spread for the symbol is greater than this ceiling value, then no trades will be permitted. If a grid line is crossed during a restricted period, favourable trades will be closed at a higher than intended profit. The skipped trade level will only be entered once it has been crossed again during an unrestricted period.


Use Trend Handler:

- This function will restrict long/short entries based upon the general market trend, determined by our Triangular Moving Average Channel Helper Indicator.

- If the indicator returns a trending market, with a long bias, only long positions will be permitted. Conversely, if the indicator returns a trending market, with a short bias, then only short positions will be permitted.

Use Momentum Handler:

- This function will prevent additional positions, based upon the net number of positions in that direction.

- For example, if “Max Trade Imbalance (Momentum)” has been set to 3, and a grid currently has 4 longs and one short, as price continues to move down, long positions will no longer be permitted.

Use Momentum Trade Closer:

- This function will close the most trailing trades, as soon as the “Max Trade Imbalance (Momentum)” has been met.

- For example, assume the price is moving up, whilst the “Max Trade Imbalance (Momentum)” has been set to 3, with 4 open short positions and 1 open long. As soon as the next higher grid line has been reached, the short position with the greatest distance from the current price will be closed at a loss.

Max Trade Imbalance (Momentum):

- The Imbalance (relevant difference between number of long and short positions) for the Momentum functions above.

Use Imbalance Multiplier:

- Sometimes it is the case that a grid is formed, and trades occur, but then a trend develops. In this situation, you will have many trades against the current movement of price. This means that whilst you will indeed be closing profitable trades, the losses you are holding onto from previous trades get larger.

- One possible solution is to increase the position size of subsequent trades in the direction of the current trend. When the number of buys and sells currently in the grid differs by “Min Trade Imbalance (Imbalance)”, the new positions will have a modified size.

https://www.alphaheim.com/subscriptions/tma-indicator/

41

- If “Use Volume Multiplier” is set to true, the function will look at your net lot exposure in the incorrect direction. It will then multiply it by “Imbalance Lot Multiplier” to get the new position size.

- If, “Use Volume Multiplier” is set to false, the new position size will be the grid base lot size multiplied by “Imbalance Lot Multiplier”.

- This function operates well in trending conditions, but does indeed increase risk.

Imbalance Trend Check:

- This function restricts the implementation of the Imbalance Multiplier. - If set to true, the imbalance function will only operate if the TMA indicator also has a

bias in the direction of the current intended trade.

Grid Breach Check:

- This function will determine the EA’s behaviour once price has exited the pre-existing grid.

- If set to true, the EA will classify price as being outside of the grid, only when “Number of Candles Breached” successive candles have closed outside of the grid. The logic following a grid breach is described within the inputs below.

- If set to false, no trading will occur until the price retracts back within the grid, or manual intervention.

Hedge on Breach:

- Once it has been determined that price is outside of the grid, a hedging procedure may proceed.

- If set to false, no hedging will occur. All trades will be closed, at a likely loss, and the grid will be reset.

- If set to true, a “hedging zone” will be created, based on the “Hedge ATR Multiplier” multiplier of the ATR, centralised around the closed candle. The hedge zone will have a top, named “zoneTop”, and a bottom, named “zoneBottom”.

- If price returns to the grid and closes within the grid for “Number of Candles Breached” successive candles, prior to placing any hedge trades, the hedging procedure is cancelled.

- If price continues toward the outermost zone level, a larger lot position will be placed. If “Use Closed Candle for Hedge Opening & Closing” is set to true, the price must first close outside of the zone level.

- The size of the position will depend on the “Hedge Pip Target”. The EA will evaluate all open positions, and calculate the lot size, such that the grid breaks even, and resets, when the hedge position reaches the “Hedge Pip Target”.

- If the target is not met, and price reaches the opposite zone level, the preceding hedge position will be closed, and a new position will be calculated and entered.

- This procedure will continue until the market moves in either direction, by the “Hedge Pip Target”.

- This implementation allows for the possibility of every grid formation to breakeven, provided sufficiently large lot sizes and suitable liquidity.

42

- The market will eventually move in either direction, but if price ranges within the hedge zone for an extended period of time, the losses will accumulate. This theoretically lossless implementation is transferred to practicality when combined with sensible augmentation of the account balance. Brokers also restrict maximum lot sizes by default. For the “Hedge Pip Target” to be accurate, the calculations should not be hindered.

- An illustration is provided below of two hedge positions. The initial long hedge did not meet the desired target, and was forced to close at a loss, followed by a short hedge position. The hedged short position did permit the grid to breakeven, and the grid routine continued as usual.

Use Range Grid Reset:

- Whilst a grid is active, if a trend develops, and the TMA indicator no longer identifies a ranging market, the grid will close all trades and restart, irrespective of whether the grid is in a profit or loss.

Use Range Entry Limiter:

- Before a grid can be formed, there is a check to see if the market is trending. If the TMA indicator identifies a ranging market (Purple histogram), the grid is formed. Otherwise, the EA will wait until the condition is met.

Server Open/Close Restrictions:

- Time based entry and exit restrictions, based upon GMT time.

43

Show Close Trades / Suspend Buttons:

- Enables the drawing of two buttons on the chart - ”Close All Trades” – This will close all trades for the current grid and reset to form a

new grid. - ”EA Toggle” – This will temporarily pause the EA from trading, until manually

reactivated using the same button.

Panel Pixel X/Y Shift:

- If the information panel is incorrectly drawn, these inputs will help spread/restrict the drawing. It is a good starting point to use multiplies of 10 for both inputs.

Half Length:

- Averaging period for the underlying TMA line.

Applied Price:

- Input data for the underlying TMA calculations.

Deviation:

- Standard Deviation from TMA line for formation of channel.

Min. Range (%):

- Ceiling percentage for a Ranging market classification.

Lookback Period:

- Search period, from the current candle, to seek highest and lowest points of the channel.

Only trade sessions once:

- When using session-based ranges, trading the same range multiple times may not be a wise idea, especially if the ranges do not cover a sufficiently large window.

- If set to true, once a grid has been closed, regardless of profit or loss, in a set session, a new grid cannot be traded until a new session is entered.

Use Session X:

- Enables trading based upon the defined session times. - All Session times are based upon GMT times.

Range Start [Session X]:

- Our range calculation methodology is only precise to the given hour. Any inputs in the minutes/seconds fields will be ignored. Similarly, the Year field is also ignored.

- The Day inputted in the date field will reference the day index, for the start of the range, with 1 = Monday.

- The Month inputted in the date field, will reference how many weeks back the range start should be shifted, with a shift of one.

44

- Weekend overlaps are automatically calculated, and does not require any alteration of the Month field.

Range End [Session X]:

- This input will decide the day and hour on which the session range will end, and be subsequently calculated upon.

Trading Zone (Hours) [Session X]:

- A grid may be formed within this number of hours, after the Range End.

Zone End Delta (Hours) [Session X]:

- When set to -1, a grid formed upon a session, will only close on manual closure, or meeting a predetermined SL/TP target.

- If set to 0, if there is an open grid at the end of the Trading Zone (Hours), then the grid will be closed, regardless of profit or loss.

- If set otherwise, the grid will be closed at the Trading Zone + Zone End Delta, regardless of profit or loss.

Session Setting Examples:

- Monday 01:00 – Wednesday 12:00, whilst allowing the grid to trade the range for 24 hours, and no time-based exit.

o Range Start = 1990.01.01 01:00:00 o Range End = 1990.01.03 12:00:00 o Trading Zone = 24 o Zone End Delta = -1

- Friday 19:00 – Tuesday 06:00, whilst allowing the grid to trade the range for 12 hours,

and strict exit at the end of the trading zone. o Range Start = 1990.01.05 19:00:00 o Range End = 1990.01.02 06:00:00 o Trading Zone = 12 o Zone End Delta = 0

- Thursday 12:00 – Monday 03:00, shifting the range start by 2 weeks, whilst allowing the

grid to trade the range for 72 hours, and strict exit at the end of the trading zone + 1 day.

o Range Start = 1990.03.04 12:00:00 o Range End = 1990.01.01 03:00:00 o Trading Zone = 72 o Zone End Delta = 24

45


Grid Trading Considerations

The success of Grid Trading very much depends on the currency pair it is executed on. Trending markets are bad for grid strategies, and some currency pairs are more likely to trend than others. Typically, trending pairs are when there are large interest rate differentials between the currencies, for example, AUDJPY and NZDJPY.

For 2020, a current view of market volatility is provided below.

46

In addition to a currency pair’s likelihood of trending, it is important to take account its possible trading range. For example, AUDJPY highest high in the last 20 years was 107.83 and the lowest low was 54.92 –almost 5300 pips.

EA Considerations

Trade Tracking

Once an EA has been applied to a specific chart, for a specific timeframe, the EA will only continue for as long as the conditions remain. If the chart timeframe is changed altered when an EA is active, the EA will de-initialise, then reinitialize as if new. This will also occur if the EA settings are altered after it has already applied. If the EA has placed a trade, and any of the above occur, the EA will no longer track the trades that have been opened. This circumstance will extend where your VPS/machine restarts during an open grid.

Pip Denominations

For simplicity, and workability across symbols, the definition of a pip has been simplified.

For 5-Digit symbols, a pip is classified as 0.00010.

For 3-Digit symbols, or less, a pip is defined as 0.010.

Please take this into careful consideration when applying the EA to metals and equities.

For example, applied to Gold, to have a grid line every $1.00, you would enter the pip value as 100.

User Guide · Using MetaTrader. Virtual Private Server o What is a VPS? o Why do you need a VPS? o...

Documents

Transcript of User Guide · Using MetaTrader. Virtual Private Server o What is a VPS? o Why do you need a VPS? o...