What Are Initial Balances?
Initial balances refer to a specific time frame at the beginning of a trading session, typically the first few minutes or hours when a market opens. During this period, traders closely observe price movements and volume to gauge market sentiment and establish trading strategies for the rest of the session.
How Initial Balance Trading Works
The concept of initial balance trading is rooted in the idea that the price and volume behavior during the initial balance period can provide valuable insights into the day's trading potential. Here's how it works:
1. Observation: Traders closely watch the price action and volume during the initial balance period, which often includes the first 30 minutes to one hour of a trading session. This is a critical phase for assessing market dynamics.
2. Key Levels: Traders identify key price levels during the initial balance period, such as the high and low points. These levels can serve as significant reference points for the day's trading activities.
3. Breakouts: Breakouts above or below the initial balance range can signal potential trading opportunities. A breakout above the initial balance high may suggest bullish momentum, while a breakout below it may indicate bearish sentiment.
The Expert Advisor
So with the EA I've created you trade the initial balance of the currency or index. So say you're trading the NY session. The initial balance would be from 9:30am EST to 10:30am EST. The EA will take the high and low of that time, and if price trades above the high it buys and if price trades below the low it sells.
Trading_Time_Start: What time the EA should start trading. For example if you're trading NY session you want it to trade AFTER the IB is established so for example at 10:31am EST. (You would have to convert to your server time)
Trading_Time_End: Time the EA should top trading. Default is 23:55 server time.
Initial_Balance_Start: From what time you want the EA to start calculating the IB (convert to your server time and what session you want to trade)
Initial_Balance_End: From what time you want the EA to stop calculating the IB (convert to your server time and what session you want to trade)
Lot_Size: Pretty straight forward, this is the lot size you want to trade.
Take_Profit_Percent: The take profit is by default 2x the size of the SL, you can edit this.
SL_IB_Start: The SL is set at the opposite side of the IB. So, if a buy position is opened the SL is set at the low of the IB. If a sell position is opened, the SL is placed a the high of the IB. So this variable is for you to indicate the start of the IB.
SL_IB_End: This variable is for you to indicate the end of the IB so it can calculate where to set the SL when a position is opened.
Percent_Away: This variable is for the trailing stop. When your position is say 50% or 80% into profit it will send the signal to the trailing stop to start.
Percent_For_Trailing_Stop: When your position is say 50% or 80% into profit it will send the signal to the trailing stop to start. This percentage is used as a way to determine how far away you want the SL to trail price.
Initial balances refer to a specific time frame at the beginning of a trading session, typically the first few minutes or hours when a market opens. During this period, traders closely observe price movements and volume to gauge market sentiment and establish trading strategies for the rest of the session.
How Initial Balance Trading Works
The concept of initial balance trading is rooted in the idea that the price and volume behavior during the initial balance period can provide valuable insights into the day's trading potential. Here's how it works:
1. Observation: Traders closely watch the price action and volume during the initial balance period, which often includes the first 30 minutes to one hour of a trading session. This is a critical phase for assessing market dynamics.
2. Key Levels: Traders identify key price levels during the initial balance period, such as the high and low points. These levels can serve as significant reference points for the day's trading activities.
3. Breakouts: Breakouts above or below the initial balance range can signal potential trading opportunities. A breakout above the initial balance high may suggest bullish momentum, while a breakout below it may indicate bearish sentiment.
The Expert Advisor
So with the EA I've created you trade the initial balance of the currency or index. So say you're trading the NY session. The initial balance would be from 9:30am EST to 10:30am EST. The EA will take the high and low of that time, and if price trades above the high it buys and if price trades below the low it sells.
Trading_Time_Start: What time the EA should start trading. For example if you're trading NY session you want it to trade AFTER the IB is established so for example at 10:31am EST. (You would have to convert to your server time)
Trading_Time_End: Time the EA should top trading. Default is 23:55 server time.
Initial_Balance_Start: From what time you want the EA to start calculating the IB (convert to your server time and what session you want to trade)
Initial_Balance_End: From what time you want the EA to stop calculating the IB (convert to your server time and what session you want to trade)
Lot_Size: Pretty straight forward, this is the lot size you want to trade.
Take_Profit_Percent: The take profit is by default 2x the size of the SL, you can edit this.
SL_IB_Start: The SL is set at the opposite side of the IB. So, if a buy position is opened the SL is set at the low of the IB. If a sell position is opened, the SL is placed a the high of the IB. So this variable is for you to indicate the start of the IB.
SL_IB_End: This variable is for you to indicate the end of the IB so it can calculate where to set the SL when a position is opened.
Percent_Away: This variable is for the trailing stop. When your position is say 50% or 80% into profit it will send the signal to the trailing stop to start.
Percent_For_Trailing_Stop: When your position is say 50% or 80% into profit it will send the signal to the trailing stop to start. This percentage is used as a way to determine how far away you want the SL to trail price.
Attached File(s)
Initial_Balances.ex4
210 KB
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444 downloads