Hello,
I would like to know if it would be possible to develop the following trading strategy;
It is a simple hedging strategy that relies on “Zone Recovery Area”.
The main purpose of this strategy is to place automatically the orders as soon as the trade is taken, with a predetermined number of pips for the zone recovery area and for the take profit location.
The orders should also be cancelled automatically when the trade is out. Even if I did not get into the hedging cycle.
I will clarify the strategy using an example
Hypothesis: I am Trading EUR/USD and the zone recovery area consists of 35 pips; the take profit at 80 Pips. (This would mean that when a reverse trade is active to hedge, 115 (35+80) pips are required to close the trade and be out with a zero loss.
Assume I have bought 1 lot at 1.1000 and the market went down.
The system would sell automatically at 1.0965 1.5 lots and place a take profit at 1.08850 and a stop order at 1.1080. (1.1000-0.0035=1.0965).
If my target is not reached and the market goes back up again and RE-hits the 1.1100 and continues back up, and other order should be taken (ALL ORDERS SHOULD BE PLACED IMMEDIATELY WHEN THE TRADE IS TAKEN, I will just have to pre-specify the number of pips for the zone recovery area and the take profit point, those are 35 and 80 pips respectively and the number of lots that I want to enter with at eat reverse trade) to buy again at 1.1000, this time, 1.2 lots with a take profits of +80 pips, that is at 1.1080 and a stop loss at 1.8850 (that is 1.1000- 80 pips).And so on and so forth.
The main challenges for this algorithm is to be able to place all orders when the trade is taken and remove them altogether when I am out of the trade (Not necessarily the hedging trade, but even if I am going through a winning trade the orders should be cancelled when the trade is closed. I couldn’t find an option to close all orders on FXCM. You can close all trading positions but not orders. Unless someone knows if that option exists).
Or course, I would have to specify the number of entries that I want and should be able to get out of the trade at any desired time.
Thank you for your time.