Forex Shape indicator trader

The Shape indicator trader uses the Shape indicator. The Shape indicator is a proprietary indicator derived from other indicators and popular candle chart and bar patterns. The Shape indicator has the following elements:

1. Entry point
2. Entry time
3. Exit point
4. Exit time

The entry point is the middle line which is derived from a number of indicators. The entry time is marked by the color of the Shape indicator. Red means buy, Blue means sell and White means wait, or no trade. The exit point is the top or bottom apex of the Shape indicator. The exit time is the time the apex is reached or breached.
The science behind the Shape indicator is that:

1. No single indicator is used by traders, especially the big market movers.
2. The different indicators have an equal impact and create the resistance and support levels.
3. The higher number of indicators pointing to a similar direction create a higher chance of prices moving in that direction, leading to a high probability trading. The benefit of an EA is that it can quickly analyse multiple indicators at the same time, as opposed to human manual capacity.
4. Volumes have a significant impact on prices.
5. The daily trend is normally defined once. Noise and non-directional movements are a sign that the trend is already defined hence inadvisable to trade again for that day.
6. The more indicators used the better.

The Shape indicator trader has a real time streaming commentary on the left side of the chart. This is derived from the EA logic and picks just a sample of the analysis made by the EA. The commentary explains in summary to the trader what the indicators are saying hence prepare the trader for the kind of trade to expect as well as equip the trader with general forex knowledge which is learnt from many years of experience. This is especially useful if coordinated with live market movement over an extended time.

Timeframe

The M5 timeframe is strongly recommended.

Currency

GBPUSD is strongly recommended. The other major currencies can be traded with caution. It is advisable to perform back tests to determine if trading results and frequency is acceptable.

Risk management

The EA always uses stop loss and take profit from the onset of placing the trade. The average take profit and stop loss levels are between 12 and 30 pips. No scalping is performed. No more than one trade is opened at the same time. No rapid opening or closing of trades is performed. Average holding time of a trade is 1 to 2 hours. No martingale, hedging or grid trading is used as part of risk management.
A small lot size and fixed lot size is recommended as a start and increased over an extended time.
It is recommended to trade one currency for an extended time as opposed to trading many currencies together. If multiple charts are to be used, a unique magic number should be placed for each. It is also recommended to use a VPS and attach the EA once without attaching and re-attaching.

Parameters

• Fixed lot size (if 'yes' below) - If the option for 'fixed lot' below is 'yes', the EA will trade using fixed lot size defined here. For example, if you put 0.1, the EA will trade 0.1 lots all through.
• Fixed_lot - There is a drop-down option in which you select 'yes' or 'no'. If you select 'no', the lot size will be defined by the capital in the account based on the setting in the next option below. If you select 'yes', the EA will trade a fixed lot size all through as defined in the immediate option above.
• Lotsize per additional usd 300(if 'no'above). The EA will divide your account balance by 300 USD. For each 300 USD, a lot size equal to what you define here will be placed. For example, if you define 0.1, and your account balance is 600 USD, the lot size will be 600 divided by 300 multiplied by 0.1 to give 0.2 lots. Similarly, an account balance of 450 USD will be 450 divided by 300 multiplied by 0.1 to give 0.15 lots.
• Magic number. This number is used by the EA to identify its trades from other trades. This is useful when you insist on placing multiple copies of the EA on multiple charts. In that case, please define a unique magic number for each chart.