Reply To: Description of Price Action Engulfing Candles Strategy

Forums Strategies and Expert Advisors Price Action Engulfing Candles EA Description of Price Action Engulfing Candles Strategy Reply To: Description of Price Action Engulfing Candles Strategy


Hi Dominik and everyone,

First off Happy New Year to you and family! I have got a couple more questions to ask you. A few days ago I stumbled upon your youtube video demoing how is the hedging done for the price action EA( this is the video I saw. From the video, I would like to clarify a few things and have a few questions as well that I will just list them down in sequence as the video progress ok?

1) As per the video(time 0:15) there is a trigger for sell(indicated by the red down arrow correct me if I am wrong here) and the EA would set a sell stop certain pips away from the trigger depending on the setting correct?

2) Once the EA set the sell stop, instead of putting a stop loss above the high of how many candle from look back as what I understood from the first strategy without the hedging choice, because you now prefer to use hedged orders, the EA would put a BUYSTOP at the original STOPLOSS, correct?

3)The video then proceed to highlight two yellow lines with the movement of the mouse key circling them, one above the buy stop and one below the sell stop……now I cannot figure out what are these yellow lines for, can you explain them to me?

4) The video then goes to show that the SELLSTOP order being filled (around 0:50)… I have a question here….what if the price did not go down but went up to fill the buy stop instead?

5) From the video I can understand that you are trying to show how the hedging principle work. It will place a LOTSIZE of 0.01(of course this can be change by the user) for the MAIN trigger (first trade which is a SELL) and base on the parameter of LotMultiplier =2 under#HEDGING, the hedge trade(BUYSTOP) for the SELL trigger in the video would has its lotsize multiply by 2 which is 0.02 in the video. Subsequently the Hedge function in the EA would also put another SELLSTOP(at the same first SELLSTOP level with a lotsize double of the last order which is 0.04,correct me if I am wrong) if the price went above the BUYSTOP. It will continue to double the lotsize and place another Opposite stop whenever the price bounces above the initial buy and below the initial sell stop level correct?

6) At 01:58, it shows all the trades are being close. Can you explain the rules for closing the trade? From my understanding all the SELL trades including those extra SELLs opened because the BUYSTOP level set by the hedge function was filled, were on trailing stop, once they are stop out by the trailing stop, the EA would close those hedging trade(BUYSTOPS trades opened during the Main SELL trigger trade)

7) What would happen in case the price trigger the MAIN SELLSTOP, and after that a few more BUY&SELL Stops set up the hedge but the price do not go down but up instead? Is the trailing stop function the same for the hedging trades as well? What I am saying is in the event of the price goes up above certain level and trigger the trailing stop for all the buy trades, once all the buy trades are stop out by trailing stop, the EA would also close all those SELL trades as well? I can now more or less understand how this hedging protect your equity after asking so many question :)

8) At 2:45, there is another trigger for sell again, but this time the price did not goes back up to fill the BUYSTOP set by the hedge function but goes straight down to trigger the trailing stop function… once the trailing stop function is activated, the EA would delete the hedge trade(BUYSTOP orders) and focus on the trailing stop until either reach the take profit level or stop out by the trailing stop correct? Can you confirm this is the same for the first SELL trigger that when the price moves down and trigger the trailing stop, the EA would delete the BUYSTOP up there? Because the video shows all SELL trades go straight to stop out by trailing stop and does not scroll up to show that the last BUYSTOP was deleted when the trailing stop for the SELL trades kick in :)

That’s all I have so far about the hedging video, hope you are able to find the time to enlighten me here or any experts in this forum ;) thanks in advance!!!