The program does not catch every price jump. Three jumps show the rule by which it decides whether to enter a trade, and what affects that with a real broker.
In the first lesson the program caught a price jump. But it does not catch every one. This lesson has three jumps: the program buys on the first, skips the second and sells on the third. Along the way the rule behind its decision becomes clear.
The lesson is recorded on training prices: the jumps are set in advance to show the rule. The simplest strategy of the program, Impulse, is at work.
The program constantly compares the fast feed price and the broker's price. It calls the difference between them the gap and counts it in points. While the prices move together, the gap is near zero.
Not every gap is worth entering. For each trade you pay the broker the spread, and a small gap will not cover it. That is why the settings have a gap threshold, and the program adds the broker's current spread to it.
On the lower chart the boundary is drawn as a dashed line, and the bars show the gap. While the bars are below the line, the program waits.
The bar is above the line, and the program buys at the broker's price, which has not changed yet. A third of a second later the broker catches up with the feed, and the trade closes with a profit.
It did not reach the line, and there is no trade. That is by design: once the spread is subtracted, almost nothing is left of such a move.
Now the program sells, and everything repeats in mirror image.
On a real account the result depends on the broker. Three things are worth watching.
Change the jump, the threshold, the spread and the lead. The trainer uses the same rule as the program and shows whether there will be a trade.
The 36 pt gap is above the 21 pt boundary. The buy fills at the broker's old price. After 0.35 s the broker catches up with the feed, the profit is 25 pt: 36 minus the 11 pt spread. The trailing stop closes the trade when the price pulls back by 3 pt.
The model is simplified: the jump is instant, the price then pulls back by 3 pt, and there is no slippage. The trailing stop is set as in the lesson: it switches on at 10 pt of profit, offset 3 pt.
Questions on the lesson. You can change an answer.
The test drive is free. The program trades on live quotes and only on a test account, the time starts from the first run.
Open the test drive