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6 mai 2022

Automatic orders on xSignals: open a trade first

Automatic orders on xSignals: open a trade first

To open a new position in the trading terminal, a trader must manually select the direction of the transaction, the volume, if necessary, Take Profit and Stop Loss levels. This takes time, which may be limited. For example, when scalping. It is more convenient to do this in one click and, if necessary, change the values on the chart to suit the market situation. This is how automated trading orders from xSignals work.

Trading platform

Select a broker in the xSignals program, and register by E-mail/Password:

Select a demo account to test the automated forex trading software.

Automatic orders option

We will not consider in detail the process of connecting xSignals automatic orders to the SimpleFX platform. The process is not difficult, watch the video.

Here we go straight to the parameters:

There is a lot of data, but getting started using automated trading xSignals is not very difficult. We do this:

  1. Look at the value of the Profit Factor, which is defined as the ratio of profitable trades to loss-making trades for past signals for a given combination of xSignals strategy indicators. In other words, the larger it is, the higher the probability of profit.

  1. Next, we determine what level of profit and loss will be on a new order. We look at the Taking Profit/Stop Loss Ratio for each option. The values determine how “far” the levels will be from the opening price. The larger the value, the greater the profit or loss will be upon closing the position. An example of automatic stop loss and take profit:

How to set stop loss and take profit? Everything is simple. If you see an “expansion” of the market, choose options with values ​​greater than 5. If volatility is decreasing, take shorter options.

When there is a strong trend, open orders with a large Take Profit. For medium and long-term strategies, take more Stop Loss, so you can wait out pullbacks and corrections

Important. After the levels appear on the chart, look at how they are located relative to technical and chart patterns, local max/min, trend and channel lines. If necessary, move the line to the desired value. Read more about what is stop loss and take profit in our blog.

Trading strategy

Let's move on to the usage example. The video shows three preferences for automated Forex trading from xSignals:

  1. The position is closed "at the market" at the required levels of profit or loss.

2. Hedging: the loss is compensated by opening the second author order on the active one with the opposite trend.

3. The transaction is not followed and is closed automatically by Stop Loss and Take Profit.

In the examples of trading with automatic orders from xSignals, we will use standard technical tools that all brokers have.

All strategy characteristics

Type: Trend.

Timeframe: Any in the range M5-D1. In our case, M5 is used, but with an increasing period of analysis, the accuracy of automatic stop loss and take profit an increasing.

Trading asset: Any crypto and active. The main requirement is a fixed (2-3 points) spread and no hidden fees.

Trading time: All sessions (Forex), 24 hours / 7 days a week (cryptocurrency).

Close «by market».

Install on the chart:

  • Bollinger Bands. The horizontal direction of indicator lines confirms the presence of a flat, the breakdown of the lines will signal its end. If the range is wide enough, you can open a rollback position from the borders. This method is only recommended for experienced traders!

  • Awesome Oscillator. The oscillator should finally confirm the signals of the previous indicators. Additional signals can be obtained using intermediate levels − in this case, the Williams Magic Oscillator will also work as an indicator of overbought/oversold conditions.

After installing the tools, the terminal's working window looks like this:

Trading signals:

  • BUY order. The price is above the lower border or the middle Bollinger line, the green Awesome histogram is above the zero level. 

  • SELL order. The automatic forex trading situation is reversed. The price goes down on the Bollinger, the red histogram is below the zero level of the oscillator.

Hedging.

The strategy uses two technical indicators.

  • Doncian Channel (DC) − the horizontal direction of the channel lines confirms the presence of a flat, the breakdown of center lines will be signal of its end. If the range is wide enough, you can open options to roll back from the borders. This method is recommended only for experienced traders!

  • Stochastic − the oscillator will assess the current balance between buyers and sellers: the predictor above level 80 − the end of the uptrend (overbought), below 20 − the end of the downward (oversold).

Trading signals:

  • We open BUY when the price turns up from the lower border of Doncian or breaks through the middle line from the bottom up. Confirming the Stochastic signal. It should move up from the oversold level or be in the overbought zone above the 80 level.

  • For SELL, the conditions are reversed. The price turns down from the upper border of the channel or below the middle line. The oscillator is down from overbought or in the oversold zone below the 20 level.

Important. Before you start using hedging, make sure you have a clear understanding of how to use stop loss and take profit in forex trading. For the hedging second trade, this matters more than for the first main trade.

Signal example:

The euro yen cross pair which often has strong impulses with good profits. Sideway channel between the upper border and the middle line of Doncian. Stochastic is overbought. The signal can also be used for automated cryptocurrency trading.

Important. Auto orders xSignals are not PENDING orders, which are available in any trading terminal. They are opened at the CURRENT price, and PENDING ones start working only when the price REACHES the specified level.

Automatic trading close position.

Strategy on one indicator:

  • SuperTrend. Calculates current support and resistance levels based on the Average True Range or ATR indicator. The larger it is the closer trend reversal. To adjust for the current volatility, use the «Multiplier» parameter; for most currency pairs it is recommended to leave the base value.

Simple signals understandable to beginner traders:

  • Open a BUY order when the price breaks through the indicator line from the bottom up, and the color changes to green.

  • SELL order for a breakdown from the bottom up and change of the indicator to red.

Let’s summarize.

Automatic forex trading with xSignals orders allows you to quickly open a position in any market situation: from high intraday volatility or after the news to “calm” medium and intraday trading. It is also very convenient to immediately see the approximate levels of Taking Profit and Stop Loss: how they are located relative to the trend lines, max/min, and other "strong points" of the market.

Once again, we remind you that auto orders are only an additional tool for convenient trading. The basis will always be strategy and money management.