LVIK-StarBot is a trading expert advisor working on the MT4 platform.
This trading robot detects morning star and evening star formations and can take automatic trading positions. It is programmed to work on any timeframe on which it is placed and only functions on the MT4 platform.
Its strategy is to detect a morning star or an evening star formation. Depending on the detection, the algorithm will initiate a short position after an evening star, or long position in the case of a morning star.
This expert advisor has been optimized on the Eur-Usd currency pair in UT 1h but it is usable on all the underlings, in all the time frames. However, an optimization will be necessary to adapt it to other market configurations.
This expert advisor works automatically in proportional exposure, the calculation of the exposure can be supported by the algorithm itself to optimize your money management. The exposure of each position is adjusted according to the chosen risk and the stop of the position so that a stop-loss exit will impact the capital by an amount equivalent to the chosen percentage (excluding unfavorable gap). Exposure adjustment is therefore automatic after a withdrawal, a deposit, or any significant change in the balance of the trading account. In addition, the initial stop automatically adjusts from the extreme point of the detected structure (high point of the central candle for an evening star and low point for a morning star), so the exposure adjusts accordingly of the ambient volatility.
Example: With a capital of $10,000, your maximum loss will be $100 if you set your risk at 1% of your capital (excluding unfavorable gap and unwanted slippage). If the risk level is increased, the positions will be taken with an higher exposure, which will increase your earnings, but also your potential losses. The exposure adjusts automatically, however it is possible to disable this function and use a constant exposure. In this case, the percentage risk is no longer taken into account, the calculation must be done manually. This algorithm can also be used as a warning system only.
More informations with this tutorial install my expert advisor on MT4 (French).
Unlike many commercially-available trading algorithms that deliver perfect performance, this robot does not cheat, only one position is open at a time, a stop loss and a take profit are placed hard on each position.
How does it works ?
SignalMail : True activates sending mail at each take and exit position.
Alerte : True generates a real-time alert on your trading platform.
Trade : True activates live trading by the expert advisor.
Start_Hour : time from which the algorithm is active.
Stop_Hour : Time from which the algorithm is no longer active. In this case, the algorithm will be active from 8:00.00 to 21: 59.59.
Ratio_1 : This ratio defines the relationship between the body and the total size of the first and third candles of the structure, in which case the body must represent at least 70% of the total candle.
Ratio_2 : This ratio defines the ratio between the body and the total size of the central candle of the structure, in this case the body must represent less than 40% of the total candle.
MM_Period : It is the moving average period above which the evening star must evolve (below for the morning star).
Auto_Expo : True enables auto exposure based on the risk percentage defined by “Risk_Percent”. False activates the manual exposure defined by the “Expo” option.
Risk_Percent : Sets the percentage risk of the Balance on triggering the stop (out of gap or slippage). Example if the scale is 10.000 $ and the parameter is 1, the exposure will be such that a stop trigger will cause a loss of $100.
Expo : Adjusting the manual exposure here, 0.1 Lot.
TakeProfit : Pips distance from entry point to place take-profit.
StopLoss : Difference in pips from the extreme point of the figure to place the stop loss.
TrailingStop : Difference in pips from the value of the trailing stop.
Slippage : Maximum deviation in pips from the execution fault when opening a position by the robot.
Example of operation:
This algorithm has been optimized on MT4 to generate a consistent performance / loss ratio. On the optimization report, the maximum relative drawdown is of the order of 6% for an overall gain close to 50%. The simulation period starts on 01/01/2011 until 09-10-2015.
In case you can not perform an optimization, I can do this optimization for you, if that is the case, you can ask me to perform an optimization on demand, I would perform it for a cost of 5 € by optimization. Example, Gbp-Usd on UT H1, H4 and D1 = 3 optimizations. You can do this optimization yourself, the parameters are accessible. The expert advisor comes with a default setting for the Eur-Usd currency pair on a UT H1.
Usage license: The license limits usage to one account per purchase.
The purchase of this expert gives right to one year of follow-up for any subsequent modification or optimization. After this period, the use is not limited in time.
The results of the backtest are only a statement of past performance in the case of the use of this strategy, these results are in no way guaranteed.
Internal parameters (stop-loss and take profit) are freely modifiable, you can re-optimize this expert advisor on all the underlying and on all timeframes, however, no performance can be guaranteed, including on a long term use. It is possible to modify the orders of exit once the open position, these manipulations as well as the global use of this algorithm are made under the responsibility of the user and the holder of the trading account.
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