Advisor Insomnia (for breakout)
The foreign exchange market, and the stock and futures market, has almost the same model of price behavior, which boils down to the fact that the market first calms down and consolidates, after which new strong breakthroughs occur, which become the beginning or loud continuation of a certain trend.
As a rule, breakouts occur after a breakout at the price of local lows and highs, which in turn are lines of support and resistance for the trend.
As a rule, the moment of breakthrough itself takes a matter of minutes, so without automation of breakout strategies it is quite difficult to achieve a stable result.
The Insomnia Expert Advisor is a trading expert that trades based on simple breakout trading tactics.
The adviser got its name Insomnia because most trades are opened either late at night or early in the morning, which, if you implement such trading tactics manually, will obviously cause you insomnia.
Installing Insomnia in a trading terminal
The Insomnia Expert Advisor is a custom Expert Advisor that is not installed in the MT4 trading platform by default. That is why, in order to use the expert, you will need to download it at the end of the page with the article and carry out the installation procedure in the trading terminal.The procedure for installing the advisor is extremely simple, namely, you will need to drop the downloaded advisor file into the appropriate folder in the terminal data directory. In order to access the data catalog, launch your trading terminal and go to the “File” menu.
Next, you will see a list of options, among which find “Data Catalog” and launch it. After you enter the data directory, you will see a number of system folders, among which find a folder called expert and drop the downloaded Insomnia file into it.
In order for the trading terminal to detect the newly installed advisor, you need to restart it or update it in the navigator panel. After updating the platform, Insomnia will appear in the list of advisors, and in order to start trading, you should drag it onto the hourly chart of the Euro/Dollar currency pair.
Trading strategy. Settings
The Insomnia advisor is based on a simple breakthrough tactic called “Insomnia”. The essence of the advisor's strategy comes down to the fact that the expert identifies two differently directed fractals (marks a local minimum and maximum) and places two pending orders at a given distance from them bye stop and sell stop.
In the event of a breakdown of one of the pending orders, the expert deletes the second one and, using trailing, maintains the position. A nice feature of the strategy is the fact that the advisor trades not only in the direction of the global trend, but also perfectly catches market reversals.
In the advisor settings, you can find parameters for transaction support, as well as exiting the market. So, in the Magic line, you can assign a unique code to the advisor, thanks to which it will recognize the actual open orders and not touch those opened manually or by other experts.
The Lot variable allows you to set the volume of the position with which the advisor will open. Also in the TP and SL lines you can change the size of the profit and stop order in points. It is worth understanding that the optimal ratio for breakthrough tactics is 1 to 4.
Thanks to the breakeven variable, you can specify the size of the profit, after which the adviser will move your stop order to the point without loss.
In the Tral if line you can specify after how many points the price passes the activation trailing stop, and in the Tral line you can change the size of the trailing stop. The offset variable specifies the distance from the fractal and the price in points.
Historical testing
Since the developer of this robot recommends using the advisor purely on major currency pairs, we decided to conduct detailed testing of it in the strategy tester on the Euro/Dollar currency pair on the hourly chart. The results of the preliminary test for the entire 2015 are shown below:
As you can see, the advisor successfully passed testing, and with a drawdown of only 5 percent, it was able to earn about 20 percent. Such a low drawdown allows you to significantly increase the lot, which will lead to a significant increase in profitability.
In conclusion, it is worth noting that the Insomnia Advisor is a very promising robot, however, in order to make a significant profit with its help, you will need to perform at least simple optimization.
Download Insomnia Advisor