Description
**Strategy Type & Trading Approach**
This is a **trend-following cBot** that combines dual Exponential Moving Averages (EMAs) with an ATR-based risk management system. It uses a higher timeframe EMA as a trend filter and a lower timeframe EMA for entry timing. This multi-timeframe approach helps avoid counter-trend trades and improves signal reliability.
The bot follows a disciplined approach:
1. **Higher timeframe EMA (default H1)** determines the primary direction.
2. **Lower timeframe EMA (default M5)** generates entry signals in the trend direction.
3. **ATR (Average True Range)** dynamically sets all stop loss and take profit levels based on current market volatility.
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**Entry Logic & Execution Behaviour**
The bot opens a trade when price crosses the lower timeframe EMA in the same direction as the higher timeframe trend. All entries occur during the **New York session (9:00 - 16:00)** by default, which can be adjusted or disabled.
**Order execution:**
- Market orders only (no pending orders)
- Positions are opened immediately when conditions are met
- Hedging mode supported
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**Risk & Capital Management Principles**
This bot uses **percentage-based position sizing** to protect capital:
- **Risk per trade:** Fixed percentage of current balance (default 5%)
- **Stop Loss:** Dynamic ATR multiplier (default 0.75 x ATR)
- **Take Profit 1:** Closes a fixed percentage of position (default 50%) at ATR multiplier 2.25
- **Take Profit 2:** Runner target at ATR multiplier 2.75
- **Breakeven:** After TP1 is hit, the stop loss on the remaining position moves to entry price (plus optional buffer)
- **Optional SL cap:** Maximum stop distance in pips (prevents excessively wide stops)
This structure ensures that:
- Trade size adapts to account growth or decline
- Partial profit is locked early
- Remaining position becomes risk-free after TP1
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**Key Trade Parameters**
| Parameter | Default | Description |
| :--- | :--- | :--- |
| Trend EMA Period | 50 | Higher timeframe trend filter |
| Trend EMA Timeframe | H1 | Chart period for trend |
| Entry EMA Period | 50 | Lower timeframe signal |
| Entry EMA Timeframe | M5 | Chart period for entry |
| ATR Period | 14 | Volatility calculation |
| ATR Multiplier (SL) | 0.75 | Stop loss distance |
| ATR Multiplier (TP1) | 2.25 | First profit target |
| ATR Multiplier (TP2) | 2.75 | Second profit target |
| TP1 Close % | 50% | Portion closed at TP1 |
| Risk Per Trade | 5% | Dynamic position sizing |
| Breakeven | Enabled | Runner protection after TP1 |
| Session Enabled | True | NY session filter (9-16) |
All parameters are fully configurable.
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**Who This Bot Is Best Suited For**
- **Best performing on:** US Tech 100 (NASDAQ) — based on extensive backtesting
- **Also works on:** Other major indices, forex pairs, and commodities with adequate volatility and trending behavior
- **Account size:** $500 minimum recommended (due to 5% risk per trade)
- **Trader profile:** Intermediate to experienced traders who understand automated trading and drawdown periods
- **Risk tolerance:** Moderate to aggressive (the bot can experience losing streaks of 10+ trades)
The bot is **not recommended for**:
- Small accounts under $200 (position sizing becomes too restrictive)
- Traders uncomfortable with 30-45% drawdown periods
- Range-bound or sideways markets (trend-following strategies struggle here)
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**Important Limitations & Usage Notes**
1. **Past performance does not guarantee future results.** Backtested results shown are historical and hypothetical.
2. **Always test on a demo account** before live deployment to verify behavior with your broker's execution and spreads.
3. **Broker conditions matter.** Widely variable spreads or slow execution may impact results, especially for the partial TP close logic.
4. **Session filter defaults to New York time.** Adjust if trading other sessions or symbols with different active hours.
5. **Losing streaks can occur.** The backtest shows a maximum consecutive losing streak of 16 trades. Ensure your account and psychology can handle this.
6. **Trend-following weakness:** The bot will lose money in ranging or choppy markets. It is designed for instruments with clear trending behavior.
7. **Swap costs apply.** Long positions incur negative swaps on most indices. This is factored into backtest results but may vary by broker.
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**Disclaimer**
Trading financial instruments carries substantial risk and may not be suitable for all investors. This cBot is an automated tool provided for educational and informational purposes only. It is not financial advice. Past performance does not guarantee future results. The author assumes no liability for any trading losses incurred while using this software. Always trade responsibly.
Summary
The bot operates primarily during the New York trading session (9:00–16:00), executing market orders immediately when conditions are met, and supports hedging. It incorporates an Average True Range (ATR)-based risk management system that dynamically sets stop loss and take profit levels according to current market volatility. Key risk controls include percentage-based position sizing (default 5% risk per trade), partial profit taking at two ATR-based targets, and breakeven stop adjustments after the first profit target is reached. An optional stop loss cap limits maximum stop distance.
All parameters, including EMA periods, ATR multipliers, session times, and risk settings, are fully configurable. The bot is suited for intermediate to experienced traders with moderate to aggressive risk tolerance and a minimum recommended account size of $500. It is optimized for trending markets and may experience drawdowns during ranging conditions. Users should test on demo accounts and consider broker execution factors before live deployment.
