The program does not enter on every price move. We show the rule by which the Gap strategy opens a trade, when it waits and what you choose here.
In the previous lesson we followed one trade from start to finish. But the program does not enter on every price move. In this lesson we see when it opens a trade and when it waits, and what you choose here.
The lesson is recorded on training prices: the moves are set in advance to show the rule. A Pocket Option test account is connected, the symbol is GBPUSD. On the Strategies tab the Gap strategy is on, and trading is running.
The strategy watches two prices: the fast one, from the OnlyFast feed, and the broker's price. When the fast price moves sharply and the broker is still standing still, a gap appears between them. The program opens a trade in the direction of that gap.
There are no trades right away. For about half a minute the strategy measures the noise: how much the price swings when the market is calm. Then a line with the threshold appears on the card. The threshold is a move the strategy considers strong enough. It calculates the threshold by itself and recalculates it when the market becomes calmer or livelier.
The fast price moved by 4 points. The move did not reach the threshold, and there is no trade.
The fast price is already up, the broker is still down. The program opens a trade on the price going up at the broker's old price, and less than a second later the broker catches up. The trade appears in the history, the expiry is 1 minute.
How strictly to pick the moves is up to you. The strategy has three modes.
The second condition is the payout. The broker changes it during the day. On the Parameters tab there is the Min payout field. If the payout is below this value, there are no trades on the symbol until it rises.
On a real market the result depends on three things.
Meanwhile the trade from the lesson has closed: plus 90 cents on 1 dollar.
Change the strength of the jump, the mode and the broker's payout. The trainer decides by the same conditions as the program in the lesson: the jump goes beyond the threshold, the broker has not caught up yet, the payout is not below the minimum.
The fast price has moved past the threshold, the broker has not caught up yet, the payout is not below the minimum. The program opens a trade on the price going up at the broker's old price.
The trainer shows no threshold in points: the strategy calculates it by itself and recalculates it with the market. The weak and the strong jumps come from the lesson, where on Balanced 4 points gave no trade and 30 did.
Questions on the lesson. You can change an answer.
The test drive is free. The program trades only on a test account, with the broker Pocket Option or 1Trade.
Open the test drive