Trading Strategy Logic Overview (TSD Script)
This document provides a non-technical explanation of the trading logic contained within the MetaTrader MQL script. The script is designed to automate trading decisions based on the "Triple Screen" system, utilizing specific technical indicators and price action rules.
Core Trading Philosophy
The script operates by analyzing three different layers of market data to determine trend direction and entry points:
- Trend Identification: Determining the broad direction of the market.
- Momentum Confirmation: Confirming the strength or "force" behind that trend.
- Execution: Placing and managing orders based on specific price levels (Highs/Lows).
Key Components & Indicators
To make its decisions, the script monitors three primary indicators:
- MACD (Moving Average Convergence Divergence): Used to determine the general trend direction.
- OSMA (Oscillator of MACD): Used as a secondary filter to confirm the strength and direction of the momentum.
- Williams %R: A momentum indicator used to identify specific "Buy" or "Sell" zones.
Trading Logic Workflow
1. Entry Conditions (When to Trade)
The script will only initiate a new trade if there are no existing positions for the current symbol and both the trend and momentum indicators align:
- For Buy Orders: The OSMA must be moving in an upward direction, and the Williams %R indicator must show a "Bullish" signal (reaching a specific low threshold).
- For Sell Orders: The OSMA must be moving in a downward direction, and the Williams %R indicator must show a "Bearish" signal (reaching a specific high threshold).
2. Order Placement Rules
The script uses Pending Orders (Buy Stops and Sell Stops), meaning it does not enter the market instantly but waits for the price to hit a specific "trigger" level:
- Buy Entry: The script places an order slightly above the High of the previous daily candle. If the current market price is too close, it adjusts the entry point to be at least 16 pips away from the current price to ensure enough "room" for the trade to develop.
- Sell Entry: The script places an order slightly below the Low of the previous daily candle. Similar to the Buy rule, if the price is too close, it adjusts the entry to be at least 16 pips away.
3. Active Trade Management
Once a trade is active or a pending order exists, the script performs three continuous tasks:
- Automatic Deletion: If the market momentum shifts against an open pending order (e.g., you have a Buy Stop but the OSMA turns downward), the script will automatically delete the pending order to prevent a bad entry.
- Dynamic Price Adjustment: The script constantly monitors the previous day's High and Low. It may modify the price levels of pending orders to ensure they remain relevant to recent price action.
- Trailing Stop Loss: For active trades, the script uses a "Trailing Stop." As the price moves in your favor (profit increases), the Stop Loss is automatically moved forward to lock in gains while maintaining a set distance from the current price.
Money Management & Safety
- Lot Sizing: The script includes a Money Management (MM) mode. Depending on your settings, it can automatically calculate the trade size based on your account balance and a specific percentage of risk.
- Safety Limits: It ensures that trade sizes do not exceed predefined maximum limits to prevent over-leveraging.
- Fixed Targets: Every trade is assigned a predefined Take Profit and Stop Loss level at the moment of entry to ensure disciplined exits.
/*-----------------------------+
| |
| Shared by www.Aptrafx.com |
| |
+------------------------------*/
/*[[
Name := TSD
Author := Copyright © 2005 Bob O'Brien / Barcode, MT4 code by Jesse Breaker, modified by TR
Link :=
Notes := Based on Alexander Elder's Triple Screen system. To be run on ANY chart timeframe, but assumes that each daily bar starts at 00:00.
Lots := 1
Stop Loss := 0
Take Profit := 100
Trailing Stop := 60
]]*/
//+------------------------------------------------------------------+
//| External Variables |
//+------------------------------------------------------------------+
extern double LotsIfNoMM = 1.0;
extern int TakeProfit = 100;
extern int Stoploss = 0;
extern int TrailingStop = 60;
extern int Slippage=5; // Slippage
extern int MM_Mode=0,MM_Risk=20;
int cnt=0,total=0;
double MacdCurrent=0, MacdPrevious=0, MacdPrevious2=0, Direction=0, OsMAPrevious=0, OsMAPrevious2=0, OsMADirection=0;
double newbar=999,LastLogTime=0,PrevDay=0,PrevMonth=0,PrevYear=0,PrevCurtime=0;
double PriceOpen=0,Lots; // Price Open
bool First=True,OperationSuccess;
double TradesThisSymbol=0;
double WilliamsBuy=0, WilliamsSell=0, ForcePos=0, ForceNeg=0, Force=0,NewPrice=0;
double StartMinute1=0,EndMinute1=0,StartMinute2=0,EndMinute2=0,StartMinute3=0,EndMinute3=0;
double StartMinute4=0,EndMinute4=0,StartMinute5=0,EndMinute5=0,StartMinute6=0,EndMinute6=0;
double StartMinute7=0,EndMinute7=0,DummyField=0;
int start()
{
if (! IsTesting())
Comment("TSD for MT4 ver beta 0.3 - DO NOT USE WITH REAL MONEY YET",
"\n",
"\n","Weekly MacdPrevious = ",MacdPrevious," Weekly OsMAPrevious = ",OsMAPrevious,
"\n","Weekly MacdPrevious2 = ",MacdPrevious2," Weekly OsMAPrevious2 = ",OsMAPrevious2,
"\n","Weekly Direction = ",Direction," Weekly OsMADirection = ",OsMADirection,
"\n",
"\n","Is Daily Williams Bullish = ",WilliamsBuy,
"\n","Is Daily Williams Bearish = ",WilliamsSell,
"\n",
"\n","Total Orders = ",total,
"\n","Trades this Symbol(",Symbol(),") = ",TradesThisSymbol,
"\n",
"\n","New Bar Time is ",TimeToStr(newbar),
"\n",
"\n","Daily High[1] = ",iHigh(Symbol(),PERIOD_D1, 1),
"\n","Daily High[2] = ",iHigh(Symbol(),PERIOD_D1, 2),
"\n","Daily Low[1] = ",iLow(Symbol(),PERIOD_D1, 1),
"\n","Daily Low[2] = ",iLow(Symbol(),PERIOD_D1, 2),
"\n",
"\n","Current Ask Price + 16 pips = ",Ask+(16*Point),
"\n","Current Bid Price - 16 pips = ",Bid-(16*Point));
if (MM_Mode < 0) {
Lots = MathCeil(AccountBalance()*MM_Risk/10000)/10;
if (Lots > 100) {
Lots = 100;
}
} else {
Lots = LotsIfNoMM;
}
if (MM_Mode > 0)
{
Lots = MathCeil(AccountBalance()*MM_Risk/10000)/10;
if (Lots > 1)
{
Lots = MathCeil(Lots);
}
if (Lots < 1)
{
Lots = 1;
}
if (Lots > 100)
{
Lots = 100;
}
}
/////////////////////////////////////////////////
// Process the next bar details
/////////////////////////////////////////////////
if (newbar != TimeDayOfWeek(CurTime()))
{
newbar = TimeDayOfWeek(CurTime());
//Newbar will be reset to 999 if the once-a-day order operations below fail, to ensure that they are retried on the next tick.
MacdPrevious = iMACD(NULL,10080,12,26,9,PRICE_CLOSE,MODE_MAIN,1);
MacdPrevious2 = iMACD(NULL,10080,12,26,9,PRICE_CLOSE,MODE_MAIN,2);
if (newbar<4) //Modify this to switch to using current week's OSMA on a specific day of the week (0-Sunday,1,2,3,4,5,6)
{
OsMAPrevious = iOsMA(NULL,10080,12,26,9,PRICE_CLOSE,1);
OsMAPrevious2 = iOsMA(NULL,10080,12,26,9,PRICE_CLOSE,2);
}
else
{
OsMAPrevious = iOsMA(NULL,10080,12,26,9,PRICE_CLOSE,0);
OsMAPrevious2 = iOsMA(NULL,10080,12,26,9,PRICE_CLOSE,1);
}
//OsMAPrevious = iCustom(NULL,10080,"OsMAtestclone_0.5",12,26,9,0,1);
//OsMAPrevious2 = iCustom(NULL,10080,"OsMAtestclone_0.5",12,26,9,0,2);
//OsMAPrevious = iCustom(NULL,PERIOD_D1,"OsMA_5_bar_rolling_0.4",12,26,9,0,1);
//OsMAPrevious2 = iCustom(NULL,PERIOD_D1,"OsMA_5_bar_rolling_0.4",12,26,9,0,2);
/*
Force = iForce(NULL,1440,2,MODE_EMA,PRICE_CLOSE,1);
ForcePos = iForce(NULL,1440,2,MODE_EMA,PRICE_CLOSE,1) > 0;
ForceNeg = iForce(NULL,1440,2,MODE_EMA,PRICE_CLOSE,1) < 0;
*/
WilliamsBuy = iWPR(NULL,1440,24,1) < -25;
WilliamsSell = iWPR(NULL,1440,24,1) > -75;
if (MacdPrevious > MacdPrevious2) Direction = 1;
if (MacdPrevious < MacdPrevious2) Direction = -1;
if (MacdPrevious == MacdPrevious2) Direction = 0;
if (OsMAPrevious > OsMAPrevious2) OsMADirection = 1;
if (OsMAPrevious < OsMAPrevious2) OsMADirection = -1;
if (OsMAPrevious == OsMAPrevious2) OsMADirection = 0;
/////////////////////////////////////////////////
// Pending Order Management
/////////////////////////////////////////////////
total=OrdersTotal();
TradesThisSymbol=0;
for(cnt=0;cnt<total;cnt++)
{
OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
if(OrderSymbol()==Symbol())
{
TradesThisSymbol ++;
} // close for if(OrderSymbol()==Symbol())
} // close for for(cnt=0;cnt<total;cnt++)
if(TradesThisSymbol > 0)
{
total=OrdersTotal();
for(cnt=0;cnt<total;cnt++)
{
OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
if(OrderSymbol()==Symbol() && OrderType()==OP_BUYSTOP)
{
if(OsMADirection == -1)
{
OperationSuccess=OrderDelete(OrderTicket());
if (OperationSuccess==FALSE)
{
newbar=999;
return(0);
}
} // close for if(Direction == -1)
} // close for if(OrderSymbol()==Symbol() && OrderType()==OP_BUYSTOP)
if(OrderSymbol()==Symbol() && OrderType()==OP_SELLSTOP)
{
if(OsMADirection == 1)
{
OperationSuccess=OrderDelete(OrderTicket());
if (OperationSuccess==FALSE)
{
newbar=999;
return(0);
}
} //close for if(Direction == 1)
} //close for if(OrderSymbol()==Symbol() && OrderType()==OP_SELLSTOP)
if(OrderSymbol()==Symbol() && OrderType()==OP_BUYSTOP)
{
if(iHigh(Symbol(),PERIOD_D1, 1) < iHigh(Symbol(),PERIOD_D1, 2))
{
if(iHigh(Symbol(),PERIOD_D1, 1) > (Ask + 16 * Point))
{
OperationSuccess=OrderModify(OrderTicket(),iHigh(Symbol(),PERIOD_D1, 1) + 1 * Point,iLow(Symbol(),PERIOD_D1, 1) - 1 * Point,iHigh(Symbol(),PERIOD_D1, 1) + 1 * Point + TakeProfit * Point,0,Cyan);
if (OperationSuccess==FALSE)
{
newbar=999;
return(0);
}
} //close for if(iHigh(Symbol(),PERIOD_D1, 1) > (Ask + 16 * Point))
else
{
OperationSuccess=OrderModify(OrderTicket(),Ask + 16 * Point,iLow(Symbol(),PERIOD_D1, 1) - 1 * Point,Ask + 16 * Point + TakeProfit * Point,0,Cyan);
if (OperationSuccess==FALSE)
{
newbar=999;
return(0);
}
} //close for else statement
} //close for if(iHigh(Symbol(),PERIOD_D1, 1) < iHigh(Symbol(),PERIOD_D1, 2))
} //close for if(OrderSymbol()==Symbol() && OrderType()==OP_BUYSTOP)
if(OrderSymbol()==Symbol() && OrderType()==OP_SELLSTOP)
{
if(iLow(Symbol(),PERIOD_D1, 1) > iLow(Symbol(),PERIOD_D1, 2))
{
if(iLow(Symbol(),PERIOD_D1, 1) < (Bid - 16 * Point))
{
OperationSuccess=OrderModify(OrderTicket(),iLow(Symbol(),PERIOD_D1, 1) - 1 * Point,iHigh(Symbol(),PERIOD_D1, 1) + 1 * Point,iLow(Symbol(),PERIOD_D1, 1) - 1 * Point - TakeProfit * Point,0,Cyan);
if (OperationSuccess==FALSE)
{
newbar=999;
return(0);
}
} // close for if(iLow(Symbol(),PERIOD_D1, 1) < (Bid - 16 * Point))
else
{
OperationSuccess=OrderModify(OrderTicket(),Bid - 16 * Point,iHigh(Symbol(),PERIOD_D1, 1) + 1 * Point,Bid - 16 * Point - TakeProfit * Point,0,Cyan);
if (OperationSuccess==FALSE)
{
newbar=999;
return(0);
}
} //close for else statement
} //close for if(iLow(Symbol(),PERIOD_D1, 1) > iLow(Symbol(),PERIOD_D1, 2))
} //close for if(OrderSymbol()==Symbol() && OrderType()==OP_SELLSTOP)
} // close for for(cnt=0;cnt<total;cnt++)
} // close for if(TradesThisSymbol > 0)
/////////////////////////////////////////////////
// NEW Orders to Place
/////////////////////////////////////////////////
total=OrdersTotal();
TradesThisSymbol=0;
for(cnt=0;cnt<total;cnt++)
{
OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
if(OrderSymbol()==Symbol())
{
TradesThisSymbol ++;
} // close for if(OrderSymbol()==Symbol())
} // close for for(cnt=0;cnt<total;cnt++)
if(TradesThisSymbol < 1)
{
if(OsMADirection == 1 && WilliamsBuy)
{
PriceOpen = iHigh(Symbol(),PERIOD_D1, 1) + 1 * Point; // Buy 1 point above high of previous candle
if(PriceOpen > (Ask + 16 * Point)) // Check if buy price is a least 16 points > Ask
{
OperationSuccess=OrderSend(Symbol(),OP_BUYSTOP,Lots,PriceOpen,Slippage,iLow(Symbol(),PERIOD_D1, 1) - 1 * Point,PriceOpen + TakeProfit * Point,"Buy Entry Order placed at "+CurTime(),0,0,Green);
if (OperationSuccess==FALSE)
{
newbar=999;
return(0);
}
} // close for if(PriceOpen > (Ask + 16 * Point))
else
{
NewPrice = Ask + 16 * Point;
OperationSuccess=OrderSend(Symbol(),OP_BUYSTOP,Lots,NewPrice,Slippage,iLow(Symbol(),PERIOD_D1, 1) - 1 * Point,NewPrice + TakeProfit * Point,"Buy Entry Order placed at "+CurTime(),0,0,Green);
if (OperationSuccess==FALSE)
{
newbar=999;
return(0);
}
} // close for else statement
} // close for if(Direction == 1 && WilliamsSell)
if(OsMADirection == -1 && WilliamsSell)
{
PriceOpen = iLow(Symbol(),PERIOD_D1, 1) - 1 * Point;
if(PriceOpen < (Bid - 16 * Point)) // Check if buy price is a least 16 points < Bid
{
OperationSuccess=OrderSend(Symbol(),OP_SELLSTOP,Lots,PriceOpen,Slippage,iHigh(Symbol(),PERIOD_D1, 1) + 1 * Point,PriceOpen - TakeProfit * Point,"Sell Entry Order placed at "+CurTime(),0,0,Green);
if (OperationSuccess==FALSE)
{
newbar=999;
return(0);
}
} // close for if(PriceOpen < (Bid - 16 * Point))
else
{
NewPrice = Bid - 16 * Point;
OperationSuccess=OrderSend(Symbol(),OP_SELLSTOP,Lots,NewPrice,Slippage,iHigh(Symbol(),PERIOD_D1, 1) + 1 * Point,NewPrice - TakeProfit * Point,"Sell Entry Order placed at "+CurTime(),0,0,Green);
if (OperationSuccess==FALSE)
{
newbar=999;
return(0);
}
} // close for else statement
} // close for if(Direction == -1 && WilliamsBuy)
} //Close of if(TradesThisSymbol < 1)
} // close for if (newbar != Time[0])
/////////////////////////////////////////////////
// Stop Loss Management
/////////////////////////////////////////////////
total=OrdersTotal();
TradesThisSymbol=0;
for(cnt=0;cnt<total;cnt++)
{
OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
if(OrderSymbol()==Symbol())
{
TradesThisSymbol ++;
} // close for if(OrderSymbol()==Symbol())
} // close for for(cnt=0;cnt<total;cnt++)
if(TradesThisSymbol > 0)
{
total=OrdersTotal();
for(cnt=0;cnt<total;cnt++)
{
OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
if(OrderSymbol()==Symbol() && OrderType()==OP_BUY)
{
if (IsTesting() && LastLogTime != iTime(NULL,PERIOD_H1,1))
{
LastLogTime=iTime(NULL,PERIOD_H1,1);
OrderModify(OrderTicket(),OrderOpenPrice(),OrderStopLoss(),OrderTakeProfit()+Point*1,0,Cyan);
}
if(Ask-OrderOpenPrice() > (TrailingStop * Point))
{
if(OrderStopLoss() < (Ask - TrailingStop * Point))
{
OrderModify(OrderTicket(),OrderOpenPrice(),Ask - TrailingStop * Point,Ask + TakeProfit * Point,0,Cyan);
//return(0);
} // close for if(OrderStopLoss() < (Ask - TrailingStop * Point))
} // close for if(Ask-OrderOpenPrice() > (TrailingStop * Point))
} // close for if(OrderSymbol()==Symbol() && OrderType()==OP_BUY)
if(OrderSymbol()==Symbol() && OrderType()==OP_SELL)
{
if (IsTesting() && LastLogTime != iTime(NULL,PERIOD_H1,1))
{
LastLogTime=iTime(NULL,PERIOD_H1,1);
OrderModify(OrderTicket(),OrderOpenPrice(),OrderStopLoss(),OrderTakeProfit()-Point*1,0,Cyan);
}
if(OrderOpenPrice() - Bid > (TrailingStop * Point))
{
if(OrderStopLoss() > (Bid + TrailingStop * Point))
{
OrderModify(OrderTicket(),OrderOpenPrice(),Bid + TrailingStop * Point,Bid - TakeProfit * Point,0,Cyan);
//return(0);
} // close for if(OrderStopLoss() > (Bid + TrailingStop * Point))
} // close for if(OrderOpenPrice() - Bid > (TrailingStop * Point))
//else if (IsTesting()) OrderModify(OrderTicket(),OrderOpenPrice(),OrderStopLoss(),OrderTakeProfit()-Point*1,0,Cyan);
} // close for if(OrderSymbol()==Symbol() && OrderType()==OP_SELL)
} // close for for(cnt=0;cnt<total;cnt++)
} // close for if(TradesThisSymbol > 0)
//return(0);
} // close for start
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