Strategy Overview: Envelope 2 Trading Logic
This script is an automated trading tool designed to manage positions based on "Envelopes." In technical analysis, Envelopes are boundaries plotted above and below a moving average; think of them as dynamic "ceiling" and "floor" levels that expand and contract based on market volatility.
The logic can be broken down into four primary functional areas:
1. Dynamic Risk and Lot Management
Before placing any trades, the script calculates the appropriate trade size (Lot Size) using a customized risk management formula:
- Margin Based: It calculates an initial lot size based on your available account margin and a predefined maximum risk percentage.
- Loss Recovery Logic: If the script detects a series of consecutive losses in your trading history, it automatically reduces the lot size for new trades. This "Decrease Factor" helps prevent heavy losses during poor market conditions by shrinking your exposure until the winning streak is restored.
2. Automated Order Placement (Entry Strategy)
The script monitors the relationship between the current price and the Envelope boundaries (Upper/Lower lines). It looks to place a total of six "Pending Orders" (Buy Stops and Sell Stops):
- Buy Positions: If the market price is currently trading between the upper and lower envelopes, the script places three Buy Stop orders at the Upper Envelope line.
- Each of these three orders has a different profit target (Take Profit), ranging from short-term to long-term goals.
- Sell Positions: Simultaneously, if those same conditions are met, it places three Sell Stop orders at the Lower Envelope line.
- Similarly, these have three distinct profit targets based on different price levels.
Time Constraints: The script only places new orders during a specific window of time (defined by the "Open" and "Close" hours). If an order is not triggered by the end of this window, the script automatically deletes the pending request.
3. Active Trade Management (Trailing Stops)
Once a trade is activated (becomes an open position), the script begins managing it dynamically to lock in profits:
- Profit Protection: For active Buy positions, it monitors if the price has moved significantly into profit. If it reaches certain milestones, the script moves the Stop Loss forward.
- Flexible Reference Points: Users can choose whether the "Trailing Stop" should follow a standard Moving Average or the opposite Envelope line.
- Dynamic Adjustment: The script continuously checks if the new calculated stop loss is better (higher for buys, lower for sells) than the current one. If it is, it updates the trade automatically.
4. Order Tracking and Cleanup
The script maintains a "memory" of its active trades using unique identification numbers:
- It identifies specific slots for Buy/Sell orders so it doesn't try to open duplicate positions in the same logic path.
- It constantly monitors the status of these orders. If an order is closed (either hit its profit target or its stop loss), the script clears that "slot" and becomes ready to place a new trade based on the next market opportunity.
Orders Execution
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Envelope 2.11
//+------------------------------------------------------------------+
//| Envelope 2.mq4 |
//| tageiger |
//| http://www.metaquotes.net |
//+------------------------------------------------------------------+
#property copyright "tageiger"
#property link "http://www.metaquotes.net"
//---- input parameters
extern int EnvelopePeriod =144;
extern int EnvTimeFrame =0; //envelope time frame: 0=chart,60=1hr,240=4hr, etc.
extern int EnvMaMethod =1; //0=sma,1=ema,2=smma,3=lwma.
extern double EnvelopeDeviation =1;
extern int TimeOpen =0;
extern int TimeClose =23;
extern double FirstTP =89.0;
extern double SecondTP =144.0;
extern double ThirdTP =233.0;
extern double Lots =0.1;
extern double MaximumRisk =0.14;
extern double DecreaseFactor =3;
extern int MaElineTSL =0;//0=iMA trailing stoploss 1=Opposite Envelope TSL
int b1,b2,b3,s1,s2,s3;
double TSL =0;
//+------------------------------------------------------------------+
//| Calculate optimal lot size |
//+------------------------------------------------------------------+
double LotsOptimized()
{
double lot=Lots;
int orders=HistoryTotal(); // history orders total
int losses=0; // number of losses orders without a break
//---- select lot size
lot=NormalizeDouble(AccountFreeMargin()*MaximumRisk/1000.0,1);
//---- calcuulate number of losses orders without a break
if(DecreaseFactor>0)
{
for(int i=orders-1;i>=0;i--)
{
if(OrderSelect(i,SELECT_BY_POS,MODE_HISTORY)==false) { Print("Error in history!"); break; }
if(OrderSymbol()!=Symbol() || OrderType()>OP_SELL) continue;
//----
if(OrderProfit()>0) break;
if(OrderProfit()<0) losses++;
}
if(losses>1) lot=NormalizeDouble(lot-lot*losses/DecreaseFactor,1);
}
//---- return lot size
if(lot<0.1) lot=0.1;
return(lot);
}
int start()
{
int p=0;p=EnvelopePeriod;
int etf=0;etf=EnvTimeFrame;
int mam=0;mam=EnvMaMethod;
double d=0;d=EnvelopeDeviation;
double btp1,btp2,btp3,stp1,stp2,stp3;
double bline=0,sline=0,ma=0;
int cnt, ticket, total;
ma=iMA(NULL,etf,p,0,mam,PRICE_CLOSE,0);
bline=iEnvelopes(NULL,etf,p,mam,0,PRICE_CLOSE,d,MODE_UPPER,0);
sline=iEnvelopes(NULL,etf,p,mam,0,PRICE_CLOSE,d,MODE_LOWER,0);
total=OrdersTotal();
if(OrdersTotal()==0)
{b1=0;b2=0;b3=0;s1=0;s2=0;s3=0;}
if(OrdersTotal()>0)
{
//Print("Total Orders:",OrdersTotal());
//Print(b1," ",b2," ",b3," ",s1," ",s2," ",s3);
for(cnt=0;cnt<total;cnt++)
{
OrderSelect(cnt,SELECT_BY_POS,MODE_TRADES);
if(OrderMagicNumber()==2)
{b1=OrderTicket(); }
if(OrderMagicNumber()==4)
{b2=OrderTicket(); }
if(OrderMagicNumber()==6)
{b3=OrderTicket(); }
if(OrderMagicNumber()==1)
{s1=OrderTicket(); }
if(OrderMagicNumber()==3)
{s2=OrderTicket(); }
if(OrderMagicNumber()==5)
{s3=OrderTicket(); }
}
}
if(b1==0)
{
if(Hour()>TimeOpen && Hour()<TimeClose)
{
if(bline>Close[0] && sline<Close[0])
{
btp1=(NormalizeDouble(bline,4))+(FirstTP*Point);
ticket=OrderSend(Symbol(),
OP_BUYSTOP,
LotsOptimized(),
(NormalizeDouble(bline,4)),
0,
(NormalizeDouble(sline,4)),
btp1,
"",
2,
TimeClose,
Aqua);
if(ticket>0)
{
if(OrderSelect(ticket,SELECT_BY_TICKET,MODE_TRADES))
{
b1=ticket;
Print(ticket);
}
else Print("Error Opening BuyStop Order: ",GetLastError());
return(0);
}
}
}
}
if(b2==0)
{
if(Hour()>TimeOpen && Hour()<TimeClose)
{
if(bline>Close[0] && sline<Close[0])
{
btp2=(NormalizeDouble(bline,4))+(SecondTP*Point);
ticket=OrderSend(Symbol(),
OP_BUYSTOP,
LotsOptimized(),
(NormalizeDouble(bline,4)),
0,
(NormalizeDouble(sline,4)),
btp2,
"",
4,
TimeClose,
Aqua);
if(ticket>0)
{
if(OrderSelect(ticket,SELECT_BY_TICKET,MODE_TRADES))
{
b2=ticket;
Print(ticket);
}
else Print("Error Opening BuyStop Order: ",GetLastError());
return(0);
}
}
}
}
if(b3==0)
{
if(Hour()>TimeOpen && Hour()<TimeClose)
{
if(bline>Close[0] && sline<Close[0])
{
btp3=(NormalizeDouble(bline,4))+(ThirdTP*Point);
ticket=OrderSend(Symbol(),
OP_BUYSTOP,
LotsOptimized(),
(NormalizeDouble(bline,4)),
0,
(NormalizeDouble(sline,4)),
btp3,
"",
6,
TimeClose,
Aqua);
if(ticket>0)
{
if(OrderSelect(ticket,SELECT_BY_TICKET,MODE_TRADES))
{
b3=ticket;
Print(ticket);
}
else Print("Error Opening BuyStop Order: ",GetLastError());
return(0);
}
}
}
}
if(s1==0)
{
if(Hour()>TimeOpen && Hour()<TimeClose)
{
if(bline>Close[0] && sline<Close[0])
{
stp1=NormalizeDouble(sline,4)-(FirstTP*Point);
ticket=OrderSend(Symbol(),
OP_SELLSTOP,
LotsOptimized(),
(NormalizeDouble(sline,4)),
0,
(NormalizeDouble(bline,4)),
stp1,
"",
1,
TimeClose,
HotPink);
if(ticket>0)
{
if(OrderSelect(ticket,SELECT_BY_TICKET,MODE_TRADES))
{
s1=ticket;
Print(ticket);
}
else Print("Error Opening SellStop Order: ",GetLastError());
return(0);
}
}
}
}
if(s2==0)
{
if(Hour()>TimeOpen && Hour()<TimeClose)
{
if(bline>Close[0] && sline<Close[0])
{
stp2=NormalizeDouble(sline,4)-(SecondTP*Point);
ticket=OrderSend(Symbol(),
OP_SELLSTOP,
LotsOptimized(),
(NormalizeDouble(sline,4)),
0,
(NormalizeDouble(bline,4)),
stp2,
"",
3,
TimeClose,
HotPink);
if(ticket>0)
{
if(OrderSelect(ticket,SELECT_BY_TICKET,MODE_TRADES))
{
s2=ticket;
Print(ticket);
}
else Print("Error Opening SellStop Order: ",GetLastError());
return(0);
}
}
}
}
if(s3==0)
{
if(Hour()>TimeOpen && Hour()<TimeClose)
{
if(bline>Close[0] && sline<Close[0])
{
stp3=NormalizeDouble(sline,4)-(ThirdTP*Point);
ticket=OrderSend(Symbol(),
OP_SELLSTOP,
LotsOptimized(),
(NormalizeDouble(sline,4)),
0,
(NormalizeDouble(bline,4)),
stp3,
"",
5,
TimeClose,
HotPink);
if(ticket>0)
{
if(OrderSelect(ticket,SELECT_BY_TICKET,MODE_TRADES))
{
s3=ticket;
Print(ticket);
}
else Print("Error Opening SellStop Order: ",GetLastError());
return(0);
}
}
}
}
for(cnt=0;cnt<total;cnt++)
{
OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
if(OrderType()==OP_BUY)
{
if(MaElineTSL==0) {TSL=NormalizeDouble(ma,4); }
if(MaElineTSL==1) {TSL=NormalizeDouble(sline,4); }
if(Close[0]>OrderOpenPrice())
{
if((Close[0]>sline) && (TSL>OrderStopLoss()))
{
double bsl;bsl=TSL;
OrderModify(OrderTicket(),
OrderOpenPrice(),
bsl,
OrderTakeProfit(),
0,//Order expiration server date/time
Green);
Sleep(10000);
}
}
}
OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
if(OrderType()==OP_SELL)
{
if(MaElineTSL==0) {TSL=NormalizeDouble(ma,4); }
if(MaElineTSL==1) {TSL=NormalizeDouble(bline,4); }
if(Close[0]<OrderOpenPrice())
{
if((Close[0]<bline) && (TSL<OrderStopLoss()))
{
double ssl;ssl=TSL;
OrderModify(OrderTicket(),
OrderOpenPrice(),
ssl,
OrderTakeProfit(),
0,//Order expiration server date/time
Red);
Sleep(10000);
}
}
}
OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
if(Hour()==TimeClose && OrderType()==OP_BUYSTOP)
{
OrderDelete(OrderTicket());
if(OrderTicket()==b1) {b1=0; return;}
if(OrderTicket()==b2) {b2=0; return;}
if(OrderTicket()==b3) {b3=0; return;}
}
OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
if(Hour()==TimeClose && OrderType()==OP_SELLSTOP)
{
OrderDelete(OrderTicket());
if(OrderTicket()==s1) {s1=0; return;}
if(OrderTicket()==s2) {s2=0; return;}
if(OrderTicket()==s3) {s3=0; return;}
}
OrderSelect(b1,SELECT_BY_TICKET);
if(OrderClosePrice()>0) {b1=0;}
OrderSelect(b2,SELECT_BY_TICKET);
if(OrderClosePrice()>0) {b2=0;}
OrderSelect(b3,SELECT_BY_TICKET);
if(OrderClosePrice()>0) {b3=0;}
OrderSelect(s1,SELECT_BY_TICKET);
if(OrderClosePrice()>0) {s1=0;}
OrderSelect(s2,SELECT_BY_TICKET);
if(OrderClosePrice()>0) {s2=0;}
OrderSelect(s3,SELECT_BY_TICKET);
if(OrderClosePrice()>0) {s3=0;}
}
}
Profitability Reports
EUR/USD
Jul 2025 - Sep 2025
1399.41
Total Trades
12
Won Trades
9
Lost trades
3
Win Rate
75.00 %
Expected payoff
464972.16
Gross Profit
5583656.00
Gross Loss
-3990.00
Total Net Profit
5579666.00
-100%
-50%
0%
50%
100%
GBP/CAD
Jul 2025 - Sep 2025
1.58
Total Trades
11
Won Trades
10
Lost trades
1
Win Rate
90.91 %
Expected payoff
48.52
Gross Profit
1453.50
Gross Loss
-919.74
Total Net Profit
533.76
-100%
-50%
0%
50%
100%
EUR/USD
Oct 2025 - Feb 2026
1.12
Total Trades
45
Won Trades
38
Lost trades
7
Win Rate
84.44 %
Expected payoff
16.61
Gross Profit
7167.40
Gross Loss
-6420.00
Total Net Profit
747.40
-100%
-50%
0%
50%
100%
USD/CHF
Jul 2025 - Sep 2025
1.05
Total Trades
46
Won Trades
36
Lost trades
10
Win Rate
78.26 %
Expected payoff
6.56
Gross Profit
6561.63
Gross Loss
-6260.08
Total Net Profit
301.55
-100%
-50%
0%
50%
100%
GBP/CAD
Oct 2025 - Feb 2026
1.00
Total Trades
21
Won Trades
18
Lost trades
3
Win Rate
85.71 %
Expected payoff
-0.13
Gross Profit
2216.36
Gross Loss
-2219.13
Total Net Profit
-2.77
-100%
-50%
0%
50%
100%
GBP/AUD
Jul 2025 - Sep 2025
0.97
Total Trades
12
Won Trades
11
Lost trades
1
Win Rate
91.67 %
Expected payoff
-2.92
Gross Profit
1356.79
Gross Loss
-1391.83
Total Net Profit
-35.04
-100%
-50%
0%
50%
100%
USD/CAD
Oct 2024 - Jan 2025
0.88
Total Trades
38
Won Trades
34
Lost trades
4
Win Rate
89.47 %
Expected payoff
-15.17
Gross Profit
4099.69
Gross Loss
-4676.12
Total Net Profit
-576.43
-100%
-50%
0%
50%
100%
NZD/USD
Jul 2025 - Sep 2025
0.88
Total Trades
61
Won Trades
45
Lost trades
16
Win Rate
73.77 %
Expected payoff
-12.83
Gross Profit
5539.80
Gross Loss
-6322.60
Total Net Profit
-782.80
-100%
-50%
0%
50%
100%
GBP/USD
Oct 2024 - Jan 2025
0.81
Total Trades
108
Won Trades
93
Lost trades
15
Win Rate
86.11 %
Expected payoff
-39.50
Gross Profit
18438.90
Gross Loss
-22705.00
Total Net Profit
-4266.10
-100%
-50%
0%
50%
100%
AUD/USD
Oct 2025 - Feb 2026
0.80
Total Trades
107
Won Trades
85
Lost trades
22
Win Rate
79.44 %
Expected payoff
-32.98
Gross Profit
14316.80
Gross Loss
-17846.00
Total Net Profit
-3529.20
-100%
-50%
0%
50%
100%
NZD/USD
Oct 2024 - Jan 2025
0.74
Total Trades
90
Won Trades
64
Lost trades
26
Win Rate
71.11 %
Expected payoff
-41.42
Gross Profit
10528.80
Gross Loss
-14256.40
Total Net Profit
-3727.60
-100%
-50%
0%
50%
100%
USD/JPY
Jul 2025 - Sep 2025
0.46
Total Trades
103
Won Trades
85
Lost trades
18
Win Rate
82.52 %
Expected payoff
-69.94
Gross Profit
6044.56
Gross Loss
-13248.35
Total Net Profit
-7203.79
-100%
-50%
0%
50%
100%
GBP/AUD
Oct 2025 - Feb 2026
0.29
Total Trades
26
Won Trades
23
Lost trades
3
Win Rate
88.46 %
Expected payoff
-332.73
Gross Profit
3492.40
Gross Loss
-12143.29
Total Net Profit
-8650.89
-100%
-50%
0%
50%
100%
AUD/USD
Jul 2025 - Sep 2025
0.15
Total Trades
29
Won Trades
17
Lost trades
12
Win Rate
58.62 %
Expected payoff
-151.05
Gross Profit
801.60
Gross Loss
-5182.00
Total Net Profit
-4380.40
-100%
-50%
0%
50%
100%
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