PipSwinger expert advisor is classified as the robot using Martingale. On the one hand, it increases the risks and requirements to deposit, on the other – makes it possible to obtain higher returns compared to more conservative trading.
The main difference between the EA and its analogues is some refinement of the algorithm, which the authors call the Martingale Disrupter. According to them, it can significantly improve the results of trading and eliminate the weak side of the Martingale robots – the greater reliance on the bursts of volatility.
As for the rest, the algorithm of the EA does not stand out from the competition. Lot sequentially increases, SL is not used, and the TP moves up/down with each order, respectively, to buy/sell. Placing orders will be considered separately.
In the description, the authors argue that the EA is multicurrency, but they prefer to trade exclusively on GBP/USD and AUD/NZD, AUD/CAD crosses. Working timeframe is h1. Also, the authors strongly recommend using the Martingale Disrupter, even if it would lead to some reduction in profits, as stability is more important.
How to configure the PipSwinger expert advisor
The list of options of the MTS is quite extensive, so we will list only the most important parameters that affect directly the process of trading:
- DoTrades - enabling/disabling the EA;
- ModifyMartingale - allows you to configure the order of the lot changes depending on the number of orders;
- TradeDirection – a kind of stop for trading. The value of "0" will allow the EA to trade in both directions, "-1" – only deals to sell will be concluded; "1" - only longs; "2" – buy/sell will alternate;
- TradeRange - affects the distance between the orders. If set to "0", then the robot will calculate the distance on its own;
- StopLoss - you can make the EA use a fixed stop;
- UseMartingaleDisrupter - enables/disables the algorithm to reduce risks;
- DisrupterClose and DisrupterClose2 - responsible for the multiplier applied to the TP at active MartingaleDisrupter;
- MaxSell/BuyMartingaleLevel - limits the maximum number of orders;
- MaxDrawDownPct - limit of permissible drawdown;
- UseGridExpander - will allow to increase the distance between the orders;
- ExpandPips - paragraphs indicate expansion of the grid orders;
- TradeLots - the value of the first lot. The EA can calculate it on its own, for this you need to specify a value of "0";
- BalanceFactor - needs to enter a value corresponding to the deposit;
- LookBackDays - indicates the number of days that are accounted by the EA in the analysis of the situation;
- CloseAllBuy/SellTrades - allows to close all sell/buy.
Also we should mention the possibility of hiding SL and TP levels from the broker. The PipSwinger expert advisor also considers the restriction on the maximum size of the lot, if the next lot will be more acceptable, the robot will break it into separate lots.
Working principle of the expert advisor
Like any Martingale expert advisor, PipSwinger opens a grid of orders at a certain distance from each other, with the lot constantly increasing. The lot size, the distance between the orders and the value of TP is calculated in such a way that when the price moves in the right direction, all orders would close at the same time, and the increase of the lot allows you to get a profit.
In this example, the transaction to buy was made not very well, the price has gone in the opposite direction. At a distance of 30 points (this parameter is automatically calculated by the EA or the step between the orders is set manually), another 1 order to buy is open. In this case, TP is located at the level of the opening of the 1st order, and the TP of the first transaction is moved there as well.
But the price has moved down again, so after 35 points there was another buy, this time with a triple lot. All 3 TPs placed at the level of opening of the 2nd order. As a result, the 1st buy closed with a loss of -30 p, the 2nd deal worked to zero, and on the third transaction the profit amounted to 35 p.
Total profit in the form of 5 points seems small, but we must note that the last transaction was with a larger lot. Besides, the PipSwinger expert advisor can change the lot in a different sequence, more aggressively, depending on the situation.
Testing of the EA
Of particular interest in the EA is the implementation of protection against strong trending movements. Therefore, the robot was tested on the EUR/USD pair for 2014 with the enabled and disabled option UseMartingaleDisrupter. Initial deposit is $10,000.
No specific differences in the test results have been identified. With the enabled protection from trend movements, the EA concluded 175 transactions and successfully siphoned off the deposit during a large-scale dollar strengthening. Protection did not work.
The same scenario was observed when disabling MartingaleDisrupter, except that the number of deals dropped to 166, although in theory the number of transactions was supposed to increase. Visually there was almost no difference in the shape of the curve of the growth of the deposit.
When testing for a longer period of time (from the beginning) of 2013 and with the starting capital of $50,000, the EA also could not stay afloat. The PipSwinger expert advisor zeroed the starting capital at the same time – in the autumn 2014.
Overall, the trading robot can be considered reliable enough for daily trading on a real account, even regardless the ambiguous situation with the parameter MartingaleDisrupter and siphon-off of the deposit during testing.
The main advantage of advisor can be considered a constant growth of the balance of the deposit without strong drawdowns. Siphon-off of the deposit is the inevitable result of the work of any Martingale EA. Since the beginning of 2013, at the most conservative settings, the expert advisor was able to increase the deposit by $23,000 and then the recoilless rising of the dollar ended the trade.
So, you can use PipSwinger expert advisor in real trading, but you need to pay special attention to the MM. NDD recommended for cent accounts is at least $60 (lot 0.01), for the usual cent – $600 (lot 0.1), for a standard – $6,000 (0.01) and for the classic account – $60,000 (lot 0.1).
To avoid the trend movement catching you by surprise, you should regularly withdraw profits, as the deposit growth curve is smooth enough, so most of the time the EA will trade at a plus. After waiting over the trend, you can continue trading.Social button for Joomla