Insomnia Advisor (for breakout)
The foreign exchange market, as well as the stock and futures markets, have a virtually identical price behavior pattern, which boils down to the market initially calming down and consolidating, after which new strong breakouts occur, which become the beginning or a loud continuation of a certain trend.
As a rule, breakouts occur after the price breaks through local minimums and maximums, which in turn are support and resistance lines for the trend.
Typically, the breakout moment itself takes just a few minutes, so without automating breakout strategies, it's quite difficult to achieve consistent results.
Insomnia Advisor is a trading expert that trades using simple breakout trading tactics.
The advisor 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 clearly cause you insomnia.
Installing Insomnia in a trading terminal
The Insomnia Expert Advisor is a custom EA that is not installed on the MT4 trading platform by default. Therefore, to use it, you'll need to download it from the bottom of this article and install it on your trading terminal.The Expert Advisor installation procedure is extremely simple. You'll just need to copy the downloaded Expert Advisor file to the appropriate folder in your terminal's data directory. To access the data directory, launch your trading terminal and go to the "File" menu.
Next, you'll see a list of options. Find "Data Catalog" and launch it. Once you've entered the data catalog, you'll see a number of system folders. Find the folder named "expert" and drop the downloaded Insomnia file into it.
For the trading terminal to recognize the newly installed advisor, you must restart it or update it in the navigator panel. After updating the platform, Insomnia will appear in the list of advisors, and to start trading, drag it onto the hourly EUR/USD chart.
Trading Strategy Settings
The Insomnia Expert Advisor is based on a simple breakout tactic called "Insomnia." The strategy consists of the expert identifying two oppositely directed fractals (marking a local minimum and maximum) and placing two pending orders at a specified distance from them bye stop and sell stop.
If one of the pending orders is broken, the expert advisor deletes the other and maintains the position using trailing. A nice feature of the strategy is that it not only trades in the direction of the global trend but also perfectly catches market reversals.
In the advisor settings, you can find parameters for trade management and market exit. In the Magic line, you can assign a unique code to the advisor, which will allow it to recognize open orders and not touch those opened manually or by other experts.
The Lot variable allows you to set the position size the EA will open. You can also change the profit and stop loss size in points in the TP and SL lines. It's worth understanding that the optimal ratio for breakout tactics is 1 to 4.
The breakeven variable allows you to specify the profit level after which the advisor will move your stop order to a breakeven point.
In the Tral if line you can specify after how many points the price will be activated trailing stop, and in the Tral line, you can change the trailing stop size. 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 exclusively on major currency pairs, we decided to conduct a detailed test of it in the strategy tester on the EUR/USD currency pair on the hourly chart. The preliminary test results for the entire 2015 are below:
As you can see, the advisor successfully passed testing, and with a drawdown of only 5 percent, it was able to earn around 20 percent. Such a low drawdown allows for a significant increase in lot size, leading to a significant increase in profitability.
In conclusion, it's worth noting that the Insomnia Advisor is a very promising robot, but in order to make a significant profit with it, you'll need to perform at least some simple optimization.
Download Insomnia Advisor
