Opening logic condition

The Opening logic condition slots are situated between the Opening point of the position slot and the Closing point of the position slot. They contain an indicator whose logic is a logic condition by nature. This logic condition is assessed separately for both, long and short positions and is always presented by a value - fulfilled or not fulfilled. It is possible that the condition is fulfilled for a short position, and not fulfilled for a long one. With some indicators, it is possible that the logic condition is fulfilled in both directions of trade at the same time (ADX).

The function of the Opening logic conditions is to allow you to open a position in a given direction. To do this, all existing logic conditions need to be met.

If the strategy does not include entry logic conditions, or if they are fulfilled for both directions of trade at the same time, the direction of the position might not be determined.

There are four Opening logic condition slots at the most. The logic within them is set for a long position only. Forex Strategy Builder automatically calculates the mirror short position logic.

Using the Add an opening logic condition button you can add a new entry logic condition.

 Additional entry signals handling
     Next same direction signal behavior:     Nothing
     Next opposite direction signal behavior: Nothing

 Opening point of the position
     Indicator:  Moving Average
     Logic:      Enter the market at the MA value
     Parameters: Smoothing method: Smoothed, Base price: Close, Period: 28, Shift: 12

 Opening logic condition
     Indicator:  ADX
     Logic:      The ADX changes its direction upward
     Parameters: Smoothing method: Simple, Period: 177

 Opening logic condition
     Indicator:  Day of Week
     Logic:      Enter the market between the specified days
     Parameters: From (incl.): Tuesday, To (excl.): Thursday

 Closing point of the position
     Indicator:  Bar Closing
     Logic:      Exit the market at the end of the bar
     Parameters: Base price: Close

With this strategy, entry orders will be sent at the price of Moving Average when both entry conditions are met at the same time, namely, the day of week is either Tuesday or Wednesday and ADX changes its direction upwards. A drawback with this strategy is the fact that both logic conditions are met for a short and for a long position at the same time. Thus, the program will send two entry orders - to open a long position and to open a short one, too.

When the market price reaches the entry point, the order for opening a long position will be executed. The order for opening a short position is to be executed at the same price. This second order comes as a result of an additional signal having a direction opposite to the direction of the open long position. The behaviour of the opposite direction signal, however, does not allow a change of position. Therefore, the order for opening a short position will be cancelled. This will happen every time an entry signal is sent, which means that opening a short position is practically impossible to do.

To rectify the strategy's logic you need to add another entry filter whose function will be to specify the direction of entry:

 Opening logic condition
     Indicator:  Money Flow
     Logic:      The Money Flow rises

In that case, a position will be opened when the three logic conditions are met at the same time. The third condition will determine the direction of the position:

• if Money Flow rises, a long position will be opened; or
• if Money Flow falls, a short position will be opened.

• The Opening logic conditions slots contain logic conditions which have two values - fulfilled or not fulfilled;
• To open a position in a given direction, all the conditions need to be met;
• The maximum number of the entry logic conditions is four;
• If there are no logic conditions, or if they are fulfilled for a short and for a long position at the same time, the direction of the position is not determined;
• A position opens at the price set in the Opening point of the position slot.