Description
The Prime Momentum Algo is an automated trading robot built for the cTrader platform (using the cAlgo API). Its primary philosophy is simple but highly aggressive: enter the market in the direction of the immediate short-term trend and hold the position—regardless of drawdown—until a specific, predefined monetary profit is achieved.
Here is a detailed breakdown of how the bot functions:
Core Trading Logic
- Trend Identification: The bot operates on a fast-paced 1-minute timeframe. It calculates the trend using a crossover system consisting of two Exponential Moving Averages (EMAs). If the Fast EMA is above the Slow EMA, it registers an uptrend and issues a "Buy" signal. If the Fast EMA is below the Slow EMA, it registers a downtrend and issues a "Sell" signal.
- Trade Execution: Trades are executed solely on the opening of a new 1-minute bar to prevent "repainting" or false signals from mid-candle volatility.
- The "Infinite Hold" Exit Strategy: The most distinctive feature of this bot is the deliberate omission of traditional Take Profit (TP) and Stop Loss (SL) levels. Instead, the bot evaluates open positions on every single price tick. As soon as the position's
NetProfit(which smartly accounts for gross profit, swaps, and commissions) reaches the user-definedTargetProfitin fiat currency, the bot instantly closes the trade.
Customizable Parameters
The bot exposes several parameters to the user for optimization:
- VolumeInLots (Default: 0,01): The fixed position size for every trade.
- TargetProfit (Default: 1.0): The exact fiat amount (e.g., $1.00) the bot aims to secure before closing an open position.
- MaxPositions (Default: 1): A hard limit on how many concurrent trades the bot can have open. If a trade is stuck in a deep drawdown, the bot will sit on its hands and wait rather than opening new positions.
- FastEmaPeriods & SlowEmaPeriods (Defaults: 9 & 50): The lookback periods for the moving averages, allowing the user to tune the sensitivity of the trend detection.
(The backtesting has some kind of bug so it drops the equity with a big loss, but that is not the case...)
Risk Profile & Caveats
Important Note: As an AI grounded in market realities, I must point out that while "Infinite Hold" strategies can boast exceptionally high win rates in ranging markets, they carry significant systemic risk. Because there is no hard Stop Loss, a sudden or sustained trend reversal against an open position can lead to catastrophic drawdowns, margin calls, or total account liquidation. This bot relies entirely on the assumption that price will eventually revert favorably enough to hit the target profit.
Summary
Distinctively, this bot does not use traditional stop loss or take profit levels. Instead, it holds positions indefinitely until a user-defined fiat profit target is reached, closing trades immediately upon achieving this net profit, which accounts for gross profit, swaps, and commissions.
Users can customize key parameters including trade volume (lots), target profit amount, maximum concurrent positions, and the EMA periods for trend sensitivity. The bot limits the number of open trades and waits if positions are in drawdown before opening new ones.
This strategy is aggressive and relies on the assumption that price will eventually move favorably to reach the profit target. It is suitable for scalping with medium trade frequency and uses fixed lot sizing. The bot supports market orders and is optimized for use with brokers like Fusion Markets.
