Explaining the Settings Part 1


Use External Indicators Parameter 

This option is made for speeding up the robot during the backtesting when set to false. You do not have to load the investment castle indicators in this case as the robot will use the built in indicators.

When this option is set to true, you must load the investment castle indicators, otherwise you will see an Error message and the visualizer won't start.


Maximum Spread Parameter

Is the spread set by your broker. For instance, EURUSD ranges between 0 and 10 but it can reach 5000 for Bitcoin.

I always keep it higher than the maximum spread of the traded pairs to keep the robot running at all times.


Slippage Parameter

This input can be at 40 as constant.


Hedge Parameter

This option is made for enabling the robot to trade in both directions, however, this does not mean if disabled it will prevent the robot from opening opposite or reversed orders. Hedge is primarily for Entry orders.

Example:

On M5 chart, we expect a new candlestick every 5 minutes and therefore if the previous order is closed, the next entry order will trigger every 5 minutes. In this case there will be two orders, Buy and Sell. One of the two orders will fall under the wrong direction and will martingale until this series is closed in profit. 

The other order will follow the correct trend direction and will keep on closing orders in profit after another.


Maximum Martingales for Each Series Parameter

These options were made to control the number of martingale orders for each type of martingale orders. I normally leave them on defaults to give the robot the freedom to close the series in profit no matter how many orders it takes.


Indicator Sensitivity and Indicator TF Parameters

These options are primarily made for controlling the Entry orders if any of the following options is chosen:

- Based on Indicator Direction

- Opposite to Indicator Direction

The two options above will become useless if the Entry indicator is Support and Resistance.

Indicator Sensitivity starts from any number below Zero to 10. I prefer to keep it as 1 or 2. 1 Means earlier signals but less accurate than 2 as the higher the number, the more number of candlesticks the indicator will consider before publishing a signal.


Support and Resistance Filter Parameter

This option will be used as a Filter if the Entry or Martingale Indicator chosen is different from Support and Resistance, and Support and Resistance from this menu is active at the same time.

This option will be used as an indicator if the Entry or Martingale Indicator chosen is Support and Resistance, and Support and Resistance from this menu is active at the same time.

This option will load the Support and Resistance indicator on the chart, it will change the colors of the candlesticks to be as per the indicator settings; Such as Blue color for Buy and Red color for Sell.

From a technical point, Support and Resistance filter or indicator will prevent the robot from placing any Buy positions in the Resistance level and will prevent the robot from placing any Sell positions in the Support level.

Support and Resistance Timeframe is a separate input and should be based on high timeframes like 1 hour, 4 hours and 1 day timeframes. It works the same way as pro traders when analyzing the market.

Calculate Using X Candles input is made available to move the key levels from the current position to the new positions as trading progresses, because the key levels will keep on changing over time.

Entry beyond support and resistance is a key input to allow the robot to reverse the orders when the market breakout the price above the resistance or below support levels.

Close on New support and resistance levels input will force the robot to close the series in profit or loss, but if closed in loss, the series can be recovered using the Recovery option.


Recovery Order Settings

This option is shared across all parameters with recovery option. The Lot Multiplier parameter under the recovery menu is a global input as we said previously, it is shared across other parameters such as:

  1. Close at new support and resistance,
  2. Stop loss and recovery strategy
  3. News filter


Money Management Parameter

I will not talk about this input for now until other parameters are well understood and steady growing strategies are in place, then we can think about scaling using the auto lot sizes.


Lot Size Limit for Martingale Parameters

You can either set a fixed limit or variable limit on the lot size for reducing the drawdown. If the selected option is "Variable", this means the robot will multiply the lot size by this multiplier to determine the maximum lot size.


Martingale Settings

This menu is for the traditional martingale strategy. The timeframe shown here is the timeframe the martingale order will follow. This is a separate timeframe for the martingale order to follow. It can be same as the Entry order or higher or lesser depending on the optimization for the pairs.

To use the stop loss and recovery strategy, this option should be turned off completely along with opposite and reverse martingale settings.

Martingale Distance is the distance in points between the previous order and the position before it is triggered. If Distance is set to Fixed, then the next input will be the number of points to be manually inserted.

If the Distance is set to Volatility, the volatility index will be used instead and the manual distance input will become idle. Distance over volatility ration will be the next input to update in this case.

Distance multiplier if set as an example to 1.5, the next Distance will be multiplied by 1.5 and so on so forth.

Lot multiplier is the multiplier used only for the martingale orders.


Opposite Martingale Settings

This menu is for the opposite martingale strategy. The timeframe shown here is the timeframe the opposite and reverse martingale order will follow. It can be same as the Entry order or higher or lesser depending on the optimization for the pairs.

To use the stop loss and recovery strategy, this option should be turned off completely along with martingsale and reverse martingale settings.

Martingale Distance is the distance in points between the previous order and the position before it is triggered. If Distance is set to Fixed, then the next input will be the number of points to be manually inserted.

If the Distance is set to Volatility, the volatility index will be used instead and the manual distance input will become idle. Distance over volatility ration will be the next input to update in this case.

Lot multiplier is the multiplier used only for the opposite and reverse martingale orders.

Opposite martingale start is the most important input to optimize when opposite martingale strategy is active. So, opposite martingale start means when the opposite martingale should trigger and after how many orders. Should we allow the price to swing or we open opposite position every time the price goes in the opposite direction?

There are two ways for doing that;
  • First is by manual input, so that it forces the robot to start regardless of the indicator direction.
  • Second is by following the indicator by setting the Auto Direction Based on Indicator to true.
Now, there is a bit more complex way also by using volatility index. The higher the volume at the moment in time, the lower the number for opposite order to start. Let's provide an Example to make it a bit clearer:

Volatility index at the time the martingale order is about to trigger is 75, and let's assume that this number is high, the opposite start will become 1, so the robot will fire opposite order right away. After that the market become slow, and volatility at that time is 18, the robot will fire the opposite order only after 5 martingale orders to allow the price to swing and traditional martingale orders to trigger beforehand.


Reversed Martingale Settings

Has the same inputs as the opposite martingale order, but the main difference between the two types is that the opposite martingale order can trigger right after Entry order or after martingale order if the price is changed to opposite side.

Reversed Martingale will trigger if the opposite order was again found incorrect due to the price changed back to where it was when started.

Example:
Entry order is Buy, price reduced dramatically and triggered opposite order twice, then the price revert back up and the indicator direction changed to Buy. That's where the reversed martingale comes into play to close the series in profit.