Martingal-Hedging EA

Logic:

An EA that trades based on the logic from martingale and hedging strategy.

Please see attachment for better description with pictures

How EA prepares to begin trading:

At any given price, EA sets two opposite pending orders, with equal lot sizes (e.g = 0.1), at equal distance from the current price (this can be altered by the user, e.g, distance between pending orders = 20pips, 30pips, etc) & SL & TP are set as seen diagram.

In the illustration (diagram above) the distance between two pending from current price is set at 10pips (5pips + 5pips)

Illustrations when any of the pending orders is triggered:

Scenario-1

If price triggers buy-stop trade with (for e.g = lot size 0.1); and a TP of 10pips (& SL=30pips) (see diagram (a) below); >>>

EA Action

EA will delete the previous Sell-Stop order (of 0.1lot) and will simultaneously open NEW “Sell-Stop Pending Order” with Lot size 0.3 (ie, multiplier = 3, 3x 0.1 = 0.3) multiplier can be varied by user. (TP 10 pips, SL=30pips) at same price position that previous Sell-Stop order was deleted.

If Long Trade hits TP, >> Delete “Sell-Stop Pending Order”

Scenario-1 Profit Calculation:

LONG Trade from scenario-1 = $10

Deleted pending order =$ 0

Total: = $10 + $0 = $10

Scenario-2:

If Long position (from senerio-1) does not hit TP, and activates “Sell-Stop Pending Order” with Lot size 0.3>> (i.e Multiplier x3 of 0.1 lot of scenario-1)

EA Action

Open another “Buy-Stop Pending Order” (at exactly same position initial LONG position was triggered) simultaneously with Lot size (multiplier = x 3 of the previous opened position, 3x 0.3 = 0.9) and set TP 10 pips, SL = 20pips >>

If NEW Short position (i.e from activated “Sell-Stop Pending Order”) hit TP, FORCE-Close all opened position (i.e Long position from Scenario-1) and Delete all Pending orders (i.e Buy-Stop Pending Order)

Scenario-2 Profit Calculation:

Trade from scenario-1 = -$20

Trade from scenario-2 = $30

Deleted pending order =$ 0

Total: = -$20 + $30 + $0 = $10

Scenario-3:

If SHORT position from scenario-2 does not hit TP and triggers a new long position from the pending order…>>>

EA Actions

Open NEW“Long position at Lot size 0.9” (multiplier x3 of previous lot size which was 0.3 lot ie. 3 x 0.3 = 0.9 lot)

Open another “Sell-Stop Pending Order” simultaneously with Lot size 1.8 (ie. 3 x 0.9 = 1.8 lot); (10 pips below) and set TP 10 pips SL = 30 pips >>

If New LONG position (i.e from activated “Buy-Stop Pending Order” Lot size 0.9) hit TP, FORCE-Close all opened position (i.e Long position from Scenario-1 >> SHORT Position from Scenerio-2) and Delete all Pending orders (i.e NEW Sell-Stop Pending Order)

Scenario-3 Profit Calculation:

Trade from scenario-1 = $10

Trade from scenario-2 = -$60

Trade from scenario-3 = $90

Deleted pending order =$ 0

Total: = -$10 - $60 + $90 + $0 = $40

Scenario-4

If LONG position from activated “Buy-Stop Pending Order” does not hit TP and price triggers “Sell-Stop Pending Order” at Lot size 2.7 (multiplier = x3; ie 3 x 0.9 = 2.7),

Open another “Buy-Stop Pending Order” simultaneously with Lot size 3 x of 2.7 = 8.1 (10 pips below) and set TP 10 pips No SL >>

If New SHORT position (i.e from activated “Sell-Stop Pending Order”) hit TP, FORCE-Close all opened position (i.e Long position from Scenario-1 >> SHORT Position from Scenerio-2 >> LONG Position from Scenario-3) and Delete all Pending orders (i.e Buy-Stop Pending Order)

Scenario-4 Profit Calculation:

LONG Trade from scenario-1 = -$20

SHORT Trade from scenario-2 = $30

LONG Trade from scenario-3 = -$180

SHORT Trade from scenario-4 = $270

Deleted pending order =$ 0

Total: = -$20 + $30 - $140 + $270 + $0 = $140

Scenario-5

Keep repeating process, ie opening new positions and counter/hedging pending positions until EA activates BREAK-EVEN POSITION LOT SIZE

What is BREAK-EVEN POSITION LOT SIZE?

This is the last pending position that the EA will place with a LOT SIZE that seeks to achieve the most minimum loss (or break-even), in a case the equity balance on the account is not sufficient to keep opening more positions.

At what scenario will this BREAK-EVEN POSITION LOT SIZE be activated?

This will be determined by the user. A user may choose MAXIMUM OPENED POSITION = 3,

This implies that if Scenerio-1, Scenerio-2 does not reach TP, BREAK-EVEN POSITION LOT SIZE will be activated at Scenerio-3

Note:

Multiplier:           Number used to multiply previous lot-size to determine new lot size for new position to be opened

FORCE-Close:     Close all opened positions when any TP or SL of any of the opened position is reached by price.