FX Lightning Advisor – multi-currency stability
Each strategy in the Forex market is one way or another focused on a specific currency pair. The fact is that each currency pair has its own characteristics, for example volatility, maximum daily movement range, spread which can significantly affect the profitability of a trading strategy.
That is why every stock exchange textbook recommends that beginners choose a certain instrument and trade only on it in order to learn all the pitfalls of its pricing.
However, as a trader becomes more experienced, he begins to understand that the strategy he uses may enter so-called unprofitable periods (market conditions have changed).
Actually, such periods happen with every strategy, without exception, so in order not to suffer constant losses and flatten the profitability curve, you have to engage in trading other currency pairs.
The FX Lightning Expert Advisor is a multi-currency expert that is used on such currency pairs as GBPUSD, NZDUSD, AUDJPY, EURJPY, USDCAD, EURUSD, USDCHF. Due to the fact that the expert simultaneously trades on different currency pairs, the hedging process is activated, thanks to which the advisor becomes quite stable, and gains or losses become more systematic.
The advisor should be used either on a fifteen-minute or on an hourly chart, which primarily depends on the settings of the expert, and not on your desire. It is also worth understanding that in order to maintain the integrity of the system you must use everything currency pairs simultaneously.
Installing an advisor in the MT4 trading terminal
As we have already mentioned, the FX Lightning Expert Advisor is a multi-currency Expert Advisor, however, it is implemented not in the form of one robot, but in the form of 14 different advisors. Each of the advisors has a currency pair and time frameon which it should be installed.
To use the FX Lightning Expert, you will need to download a set of necessary files and install them.
In addition to the 14 EA files, the archive will contain two library files, which will also need to be installed. So, go to your trading terminal and open the file menu. You will see a list of options, among which find “Data Directory” and launch.
After opening the directory, look for a folder called Libraries and drop the library files into it, and also look for a folder called expert and drop 14 advisor files into it. For the terminal to see the changes, restart the trading platform.
After the platform is launched, decide on which Forex time frame the advisors should work (M15 or N1) and place FX Lightning advisors on the charts with the time frame you have chosen.
Information about the strategy. Settings
The FX Lightning advisor uses scalping trading tactics based on custom technical indicators. The essence of the strategy comes down to the fact that the expert finds overbought and oversold zones and, based on them, opens short and long positions.
In the expert settings, you will not find parameters that could directly affect the entry point, however, you can easily change options for transaction support, as well as basic parameters.
So, in the MaxTradesPerVersion line you can limit the maximum number of simultaneously open positions on a certain currency pair, and in the MaxTradesPerAccount line you can set the maximum number of positions for your account.
Options Take Profit and Stop Loss allow you to specify the size of the target in points for the advisor, as well as the size of the possible loss in points. The MaxSpread line allows you to limit the expert's trading at the moment when the broker widens the spread (on news or at night).
To do this, indicate in the line the minimum spread value, which is indicated in the contract specifications on the broker’s page. You can also specify the slippage size of quotes in the Slippage line, if exceeded, the advisor will not open a deal.
The advisor is capable of both dynamic calculation of a lot (set by default) and trading of a purely static lot. If you want the expert to trade a static lot, indicate in the line Money Management value 0, but do not forget to indicate the position volume in the FixedLot line.
If you want to trade a dynamic lot, then indicate the risk percentage in the MoneyManagement line, and do not forget to limit the maximum volume value in the MaximalLot line. The Magic Number parameter allows you to assign a code to orders for which positions are tracked and supported by the FX Lightning expert.
Testing
Testing in the strategy tester was carried out for 2015 on the pound/dollar currency pair on an hourly chart. All settings were left at default. Test result for GBPUSD:
As you can see, the testing result is quite encouraging, however, before installing the advisor on a real account, conduct more detailed testing of each currency pair on Forex, as well as optimization of the main parameters if necessary.
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