Strategy Overview – A Robust 1:1 CRV Approach with Controlled Risk Management

This algorithm is built on a solid 1:1 CRV (Chance-Risk Ratio) methodology within a closed, reliable system, ensuring controlled risk management throughout the trading process. It combines dynamic market analysis with precise profit and loss controls and strict position limits.

[ Limited-Time Special: First 10 Users Enjoy a Unique Discount! ]

Dynamic Renko Overlay and Chart Visualization

• Dynamic Box and Brick Size:
  The BRICKS indicator calculates the effective brick size by measuring the distance between the current closing price and an exponential moving average (EMA).
• • Calculation Details:
  • • The EMA serves as a dynamic reference point.
    • The box size varies based on the current distance from the EMA as well as historical minimum and maximum distances (over up to 500 bars).
    • Within defined limits (BoxSizeMin and BoxSizeMax) and considering a specified step size, the final brick size is determined.
• Visual Overlay:
  The result is displayed as an overlay directly on the price chart:
• • A red box spans between the Renko Top and the NewLevel.
  • A green box is drawn between the NewLevel and the Renko Bottom.
    These colored boxes provide clear visual cues on support and resistance zones, helping traders quickly identify potential trend reversals.
• Take-Profit Lines:
  The strategy sets dynamic profit targets:
• • TP Long: Calculated by adding the brick size to the current Renko Top line.
  • TP Short: Determined by subtracting the brick size from the current Renko Bottom line.
    These TP lines are based on the next brick that forms on the reverse side of the current brick, signaling an optimal exit for profits.

Position Management: Long and Short Limits

• Long Limit:
• • Definition: The “Long Limit” parameter (default: 4) defines the maximum number of long positions that can be open at any time.
  • How It Works:
  • • The algorithm continuously monitors the number of open long trades.
    • Once the limit is reached, no additional long orders are placed, preventing overexposure during uptrends and minimizing risk.
• Short Limit:
• • Definition: Similarly, the “Short Limit” parameter (default: 2) restricts the maximum number of open short positions.
  • How It Works:
  • • The system tracks active short trades.
    • If the number exceeds the defined limit, no further short positions are opened, reducing the risk during adverse market moves.

Automated Risk Management

• Risk % Equity:
• • Definition: A fixed percentage of the equity (e.g., 1%) is set as the maximum risk per trade.
  • Volume Calculation:
  • • The strategy calculates the distance in pips between the entry price and the stop-loss—determined by the opposite side of the brick.
    • Trade volume is adjusted so that only the specified percentage of the account equity is at risk.
      This approach ensures that the risk per trade is always controlled and proportional to the available capital.

Structured Execution via Block and Counter Mechanisms

• Hierarchical Block Structure:
  The entire trading logic is divided into clearly defined blocks that are executed sequentially. Each block encompasses specific conditions and actions—from market analysis and position checks to order execution—ensuring that trading decisions are made systematically.
• Counter System:
  An intelligent counter mechanism regulates the frequency of specific trading actions. This system guarantees that the long and short limits are strictly adhered to and prevents orders from being executed too frequently or uncontrollably.

Overall Strategy Summary

The algorithm integrates cutting-edge charting techniques with reliable risk management:

1. Market Analysis and Visual Representation:
2. • The BRICKS indicator delivers dynamic Renko values displayed as colored overlays.
   • The red and green boxes clearly delineate areas of support and resistance.
2. Trading Decisions and Execution:
3. • Take-Profit and Stop-Loss: Profit targets are dynamically set based on the brick size and TP lines, while stop-losses are precisely positioned on the opposite side of the brick to limit losses.
   • Position Control: Separate long and short limits ensure that overexposure is avoided and risks are effectively managed during volatile market conditions.
3. Automated Risk Management:
4. • Trade volume is determined based on a fixed percentage of account equity, keeping the risk per trade within a controllable range.
4. Structured Execution:
5. • A well-defined block structure combined with an intelligent counter system ensures a clear, step-by-step execution of trading decisions, protecting against excessive order frequency.

Conclusion:
This strategy is based on a robust 1:1 CRV approach implemented within a closed, reliable system. By leveraging dynamic market analysis, precise profit and loss controls, strict long/short limits, and automated risk management, the algorithm offers a resilient solution for traders seeking maximum profit potential with controlled risk.