The idea of trading at night, when the big players are absent from the market, is not new: a lot of MTS are based on it, and the Pipjet expert advisor also trades only at night. The basic idea is that at night the price often moves in a horizontal channel, and you can therefore trade on the rebound from its boundaries.
Of course, the expert algorithm is much more complex and real trading considers many other factors, not just the boundaries of the channel during the Asian session. In particular, a tick volume is taken into account (this will be discussed below), the size of the channel (the EA won’t be satisfied with the big price increment), its angle (the so-called trend direction), the course of the US session, etc.
The developers recommend trading only on one currency pair: USD/CAD, the result on other pairs does not show stability and profitability. Trading is conducted on the h1 timeframe, the developer has no strict requirements on MM, but focusing on the drawdown, it may be advisable to deposit $30-$40 for cent accounts, and about $100 for an ordinary account.
Why Pipjet trades on USD/CAD
Dollar/Canadian wasn’t chosen as a major currency pair by chance. The developers underline 4 main factors:
- tick volume (shows how many times the price has changed over time). This figure for the USD/CAD has increased several times in recent years. And if in 2007 it averaged to 723 (for timeframe h4), in 2009 the tick volume was already 5,757, and in 2011 – 7,722. Therefore, the Asian session can become quite profitable;
- low spread;
- link between the Canadian and US economies. With this, the authors have created a so-called "insurance from the news". The fact that the news of the first magnitude often sets the tone for trading for a few days is also used in trading;
- EA algorithm analyzes the behavior of the pair during the European session as well. Most major currencies are traded quite intensively at this time, sometimes passing 100 points in a matter of hours. Looney is more calm in this regard (at least if there is no important news).
In general, trading becomes more relaxed due to this, and we need much smaller SL. Asian session has always been calm on the market, but due to high tick volumes, the Pipjet will not be idle.
Settings and operation of the expert advisor
There is minimum of settings, but the functional of the robot is not affected. A trader can change parameters such as:
- Aggressive – affects the tactics of trading. If true, the expert adviser will be cautious;
- NFA – only relevant for trading in the United States;
- AutoLocalGMToffset – difference between the time of the broker and UTC is determined automatically;
- GMToffset – difference between time zones must be set manually for testing;
- S1/S2_Reference – used by the expert advisor to not confuse its own positions with others;
- Top/LeftPadding/TextColor1,2,3 – adjusts the position and color of the text that the EA places on the price chart;
- Slippage – the maximum slippage;
- OrderComments – you can specify a comment for each transaction;
- RiskLevel – indicates acceptable risk per deal in unit fractions from the size of the deposit, 0.02 means 2%, and the value of 0.00 will make the Pipjet expert advisor trade with a fixed lot;
- LotSize – lot size (only when RiskLevel = 0.00);
- RecoveryMode – a kind of analogue for Martingale, the lot will increase for the next trade after the loss;
- ConsiderCommission – allows to consider/not to take into account the brokerage fees at fixing profits;
- SecureProfit – at low volatility, the bot will close 50% of the deal at a profit of 5 points.
The expert advisor starts its work with the fact that it analyzes the trades during the American session, estimates direction of trading and volatility. It also takes into account the sustainability of the trend, whether it came under the influence of the news or seen in the market for a long time.
The main condition for entry into the market is the value of the tick volume. It is necessary that this indicator has decreased to at least 30% of the average teak volume on m15 timeframe during the American session. The change in the spread is also taken into account, but it is only relevant for brokers with floating spread.
Testing of the expert advisor
Reviews of testing the Pipjet are different, some results suggest a stable siphon-off, the others – a stable profit. The main reason for this difference is the quality of testing. In this case, the capabilities of a standard MT4 strategy tester may be not enough, you need 99% of modeling quality, because the bot is very sensitive to price fluctuations.
Testing was performed with quotations from Dukaskopy for maximum accuracy. Even at the distance of a couple of months there is a noticeable difference between the test results, if working with m1 the EA is unprofitable, working with teak data indicates profitable trading.
The robot shows excellent results in the long run – the starting deposit has increased several dozen times. We should also pay attention to the high percentage of winning trades – more than 95% of the total. This suggests the viability of the idea that the MTS is based on.
Pipjet will fit, first of all, the lovers of quiet trading. The average daily number of transactions is 1-2, no more. The EA seeks to maximize profit, so the transaction can stay open for a few days, it all depends on the situation.
The advantages of the robot include a comprehensive analysis of the situation on the market: not only the movement during the day is analyzed, but also the behavior of the price within a few days before the current date. In addition, the algorithm allows to distinguish the movements caused by unexpected news from a measured trend movement.
The disadvantage is not very high intensity of trading and drawdown of 55%, but there are just minor comments. Much more important is that if you comply with the rules of trading, the expert advisor allows to earn stably during many years. But you shouldn’t be involved in optimistic forecasts either – after all, the results of trading in real accounts may significantly differ from testing, even with the greatest possible precision.Social button for Joomla