Advisor DeMarker. Demark's reference points
A notable feature of a trend is its obviousness in historical interpretation, while in real time, an understandable, targeted area of the market suddenly becomes something unpredictable and difficult to predict.
The most interesting thing is that the simplest tool in the hands of a trader, the trend line, allows you to effectively determine the trend, as well as respond in a timely manner to its changes.
However, there are a number of problems with the same trend lines, because to this day most people do not know exactly how to build them, what prices to take as a basis, closing prices or minimums and maximums?
Incorrect construction leads to premature opening of trades and incorrect identification of trend changes, which entails very serious consequences.
The works of the famous trader Thomas DeMark, who introduced the concept of reference points, the methodology for their calculation, and most importantly the rules for constructing levels based on them, help to discard all subjectivism.
Forex trading advisors are often based at similar levels.
The DeMarker advisor is a fully automatic robot that implements a trading strategy based on a breakout of a trend line built according to the Thomas DeMark methodology based on user DeMark Lines indicator.
It is worth noting that trend lines are equally effective on all types of assets, so the adviser can be useful to all traders, regardless of what you prefer in your trading, namely stocks or currency pairs.
Also, with proper optimization, the advisor can be used on absolutely all time frames, which makes it a useful development for both scalpers and long-term traders.
Installing the DeMarker advisor
The first version of the EA appeared back in 2008, but after many updates to the trading terminal, the EA practically stopped working and was lost in history.
However, the topic was updated, and the advisor was completely rewritten and redesigned for new platform builds at the end of 2016, moreover, the development was posted in the MT4 developer library.
Today, a trader has two options for installing an expert - through the library, or through the data catalog of the trading terminal. To install through the library, launch your trading terminal, open the “Terminal” panel and then move to the “Library” tab.
Then filter the list of suggested files so that only advisors are displayed. In the resulting list, find the DeMarker advisor, then download it using the additional menu as shown in the image below:
If installation via the library caused you difficulties, you can always use the standard scheme.
To do this, you just need to download the indicator and advisor files at the end of the article, and then place them in the appropriate folders in the data directory. After you restart the trading terminal or update it in the panel, the DeMarker navigator will appear in the list of advisors, and in order for it to start trading, just drag the name of the robot onto the chart of the currency pair.
Trading strategy.
Settings As we have already noted, the EA is based on the methodology of constructing DeMark trend lines.
So, based on the DeMark Lines indicator, the advisor builds reference points along which a trend line is drawn. Then the robot records the intersection of the trend line, after which it opens a position with four orders simultaneously.
It is worth noting that each order has a different profit and stop order. Thus, if some transactions are closed at a loss due to high market activity, the losses are compensated for at the expense of the remaining ones.
Also, early closing of transactions occurs after the appearance of a signal in the opposite direction.
So in the Reverse line you can enable or disable the option of closing transactions and re-opening in the direction of a new signal.
In lines TradeLots 1, 2, 3, 4 you can set the volume for each of the four positions. The Trade SL 1, 2, 3, 4 variables allow you to set a stop order for each of the four positions, and the Trade TS variables allow you to set a point without a loss, where the stop will be moved if a profit passes in the corresponding direction.
Trade TP variables allow you to set profit for each trade (by default there is no profit, since trailing is enabled). In the Trailing Stop variable, you can specify after passing how many points towards profit, the trailing stop , and the trailing step is set in the Trailing Step line.
Testing in the strategy tester
For the purity of the experiment, we tested the DeMark Lines advisor on the history of a four-hour chart of the Euro/Dollar currency pair for 2016 with default settings that were relevant for 2008.
What came out of this, see below:
In conclusion, I would like to note that the DeMarker advisor is perfect for traders with a small amount of capital, since it does not use averaging or martingale.
However, the profitability graph clearly shows the fact that the settings are very outdated, so be sure to optimize the main parameters, as well as your own testing.
Download Advisor DeMarker