Binario 31 Expert Advisor is a powerful script that trades breakouts based on Exponential Moving Averages (EMA).
It relies on Exponential Moving Averages to define a price band which acts as Support and Resistance levels, which when breached generates new trend breakouts. Pending SELL-STOP and BUY-STOP orders are placed just outside the Support and Resistance levels to catch potential breaks.
If the price reverses after a breakout, which is termed as a false breakout, and then hits a stop-loss, the pending order of the opposite direction is triggered, thus providing another opportunity to trade the breakout in the opposite direction.
In the first step it calculates the 144-period Exponential Moving Average of the High prices. This is considered the Resistance level.
It then calculates the 144-period Exponential Moving Average of the Low prices. This is considered the Support level.
A BUY-STOP pending order is placed at a distance of PIP_DIFFERENCE above the Resistance. The stop-loss of this BUY-STOP pending order is one pip below the Resistance level and the take-profit is set to the TAKE_PROFIT value. If a LONG position is already open, a pending BUY-STOP order is not placed.
Likewise, a SELL-STOP pending order is placed at a distance of PIP_DIFFERENCE below the Support. The stop-loss of this SELL-STOP pending order is one pip above the Resistance level, and the take profit is set to the TAKE_PROFIT value. If a SHORT position is already open, a pending SELL-STOP order is not placed.
If the Support and Resistance levels change while the order(s) are pending, the entry price, stop-loss and take-profit values are adjusted accordingly.
The Expert Advisor protects profitable positions with a trailing stop defined by the TRAILING_STOP parameter.
- LOTS – The lot-size of each trade opened by this Expert Advisor.
- MAXIMUM_RISK– The maximum risk per trade in the account currency. For example, if this value is set to 10, the maximum risk allowed is $10, and the lot-size is reduced if the risk based on the default lot-size (LOTS) is greater than this value.
- TAKE_PROFIT – The take profit of each trade in points.
- TRAILING_STOP – The trailing stop of each trade in points.
- PIP_DIFFERENCE – The maximum allowed spread in points used to adjust the entry price of a trade and the stop-loss of the opposite directional trade.