Important Info about Price Action EA's

Who should use Price Action Expert Advisors

The Expert Advisors offered by Price Action EA's are NOT just simple Pin Bar, Inside Bar and Engulfing Bar indicators and trading robots. The candlestick patterns identified by each EA are determined by very specific user defined parameters.

For example, the Pin Bar EA has parameter options for the following:

  • Overall Pin Bar size,Pin Bar Wick size, Pin Bar Tail size

  • Pin Bar False Breaks (either previous candles or moving averages)

  • Pin Bar Bearish/Bullish closes for the Pin Bar

  • EMA Moving averages, and trend strengths,

  • Order options including buy/sell stop orders or Limit orders for retracement entries

  • Various money management options.

There is similar variability with the Inside Bar and Engulfing Bar parameters.

 

Users needs to have a solid  understanding in how these Candlestick patterns are influenced by these types of parameters to get the most from these EA's  The EA's also require optimization (through the MT4 platform) for each chart it's applied to.  The user must have a good knowledge of how MT4 back testing functions and obtaining tick data corresponding to their brokers history.

These are sophisticated and very adaptable EA's/Indicators which can be incorporated into the users trading plans to help identify these timeless candlestick patterns with respect to their own trading plans and criteria.

The user defined parameters are intended to improve the quality of the setups identified. This improves the expectancy, profit factor and draw down but also decreases frequency of trading. Patience is required for this approach to trading.

How to use Price Action Expert Advisors

Although these expert advisors are capable of being optimized and run autonomously, we don't recommend them be used this way.

 

Price Action Theory always suggests that you incorporate these patterns in context with other market and price action components when creating your trading plan.

 

For example

 

  • Trading session (Asian, European or North American) where the pattern was identified

  • Market volatility at the time of the pattern

  • Identifying trending markets, volumes, ranging markets, etc

  • Support and Resistance in relation to the Price Action pattern.

  • Dynamic support and resistance (Moving averages, Trend lines, etc)

All the Expert Advisors have a trade confirmation function and they all place pending orders for the set ups identified. This will allow the user to exam each set up identified by the expert advisor in relation to the other factors in the users trade plan. If the set up suits all the factors, you simply confirm the trade and the order is placed. The expert advisors can be set to provide email and sms notifications for set ups identified by the expert advisor.

We recommend using the Trade Confirmation function with each EA to allow for review of the setup with respect to other market factors at the time of the setup and also any trade criteria you may have in addition to those identified by the EA.

Important Back Testing and Optimization Information...

We DO NOT provide optimized settings for the Expert Advisors for many obvious reasons, although we can offer suggestions for various time frames (these are provided  with the EA's)

 

There are hundreds of potential brokers who provide Meta-trader 4 platforms. They all have different GMT chart times,  some have Sunday openings, etc,

Each user will be using different historical data based on the broker and GMT offset as well. So one set of optimized parameters for each potential MT4 financial instrument and time frame is impossible.

Also, each Expert Advisor is capable of being optimized for many different parameters relating to the Price Action Pattern being identified and traded. Each user will have different preferences for the many different parameters.

All of these parameters will have a great impact on the quality and quantity of set ups identified.

For example with the Pin Bar advisor, the larger the wick and overall size of the Pin Bar, the stronger the set up, but these are also going to be less common so trade frequency will be lower. This would increase profit factor and decrease potential draw downs.

A Pin Bar with a shorter wick and smaller over all size will be more common but won't be as strong a set up, so this would increase trade frequency at the cost of profit factor and potential draw downs.

Each Expert Advisor is provided with a PDF explaining the optimizable parameters for the Expert Advisor. It will provide tips on how best to optimize the Expert Advisor and how these can impact trade frequency and strength of set up.