Indicators Logic

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Each Forex Strategy Builder indicator has its own logic of implementation. It determines what the behavior of the given indicator will be depending on the slot where it is positioned.

To a certain extent, all kinds of logic are of a similar type for the different indicators. Here, we are going to look through the indicators as a whole, without taking into account any particular indicator.

NB:

  1. In the indicator slots you can set the long position logic only. Forex Strategy Builder automatically applies the mirror short position logic. Here, we are going to examine the way of using the chosen logic in both directions.
  2. The “Use previous bar value” parameter of the indicators is of paramount importance for an accurate historical test to be carried out. If this parameter is active, the indicator signal moves one bar forward. This is dwelt upon in detail in the article Use Previous Bar Value.

Opening point of the position

These indicators set the price at which you can open a position.

One entry price indicators

The logic used by the one entry price indicators cannot determine the direction of the position. It sets the price at which a short and a long position can be opened. The direction is determined by the indicators positioned in the “Opening point of the position” slot.

Enter the market at the beginning of the bar

Short and long positions are opened at the beginning of the bar. This is done by means of a market order for immediate execution.

Enter the market at the beginning of the day

Using this logic, positions are opened at the beginning of the day. If you are using a daily chart, the result is the same as with the logic above.

Enter the market at the specified hour

With this logic, you can open a position at the beginning of the bar but only if the bar begins at a preset hour.

Enter the market at the end of the bar

Short and long positions are opened at the end of the bar. In fact, in real trade, you do not wait for the end of the bar but open the position seconds before it is closed. The market order for immediate execution is used here, too.

Two entry price indicators

These indicators have two entry prices. We are going to call them “Upper” price and “Lower” price.

Enter long at the "Upper" price

When applying this logic, you can enter a long position at the upper price of the indicator, and you can enter a short one at the lower price.

Enter long at the "Lower" price

When applying this logic, you can enter a long position at the lower price of the indicator, and you can enter a short one at the upper price.

Opening logic condition

The logic of the indicators placed in the “Opening Logic Conditions” slots are indeed logical conditions. They have two conditions “satisfied” or “unsatisfied”. Normally most of the conditions are satisfied for a long position and unsatisfied for a short position and vice-versa. These conditions play as filters. All of them must be satisfied a position to be open.

The Indicator rises

  • When the current indicator's value is higher than the previous value the logic permits a long entry.
  • When the current indicator's value is lower than the previous value the logic permits a short entry.

The Indicator falls

  • When the current indicator's value is lower than the previous value the logic permits a long entry.
  • When the current indicator's value is higher than the previous value the logic permits a short entry.

The Indicator is higher than the Level line

  • When the indicator's value is higher than the value specified as Level the logic permits a long entry.
  • When the indicator's value is lower than the value specified as Level the logic permits a short entry.

The Indicator is lower than the Level line

  • When the indicator's value is lower than the value specified as Level the logic permits a long entry.
  • When the indicator's value is higher than the value specified as Level the logic permits a short entry.

The Indicator crosses the Level line upward

  • When the previous indicator's value is lower than the Level's value and the current indicator's value is higher than the Level's value the logic permits a long entry.
  • When the previous indicator's value is higher than the Level's value and the current indicator's value is lower than the Level's value the logic permits a short entry.

The Indicator crosses the Level line downward

  • When the previous indicator's value is higher than the Level's value and the current indicator's value is lower than the Level's value the logic permits a long entry.
  • When the previous indicator's value is lower than the Level's value and the current indicator's value is higher than the Level's value the logic permits a short entry.

The Indicator changes its direction upward

  • When the indicator has a higher value followed by a lower value which is lower than the current value the logic permits a long trade.
  • When the indicator has a lower value followed by a higher value which is higher than the current value the logic permits a short trade.

The Indicator changes its direction downward

  • When the indicator has a lower value followed by a higher value which is higher than the current value the logic permits a long trade.
  • When the indicator has a higher value followed by a lower value which is lower than the current value the logic permits a short trade.

Closing point of the position

The indicator in this slot determines the exit price.

Closing logic condition

If you use such a slot its indicator acts as a trigger. If its logic is satisfied the strategy closes an open position at the exit price shown in the “Closing point of the position” slot. When there is no satisfied logic the position remains open regardless the fact the market has reached the exit price.

 
indicators/logic.txt · Last modified: 2008/08/19 17:26 by popov