The idea behind the Auto Trader is to trade during non-farming activity, which can create a sudden movement in the market on either side. When any important economy-related decision declared for any country, it creates a very sudden big movement in that country’s currency pairs. This movement can be on either side and during such time no analysis and strategies work. In such circumstances, Danca News Auto Trader helps the trader in opening & managing orders automatically in the direction of market movement.
This Auto Trader capitalizes on the idea by trading in the direction of the breakout. It does not attempt to determine the direction of the breakout but rather waits to trade in the breakout direction by placing pending orders in both directions. To get the best outcome from the EA it is always advisable to attach the EA just before any important scheduled news event.
When the Auto Trader starts, it places initial a BUY-STOP and a SELL-STOP order based on the PipsAway parameter. If the PipsAway is set to 50 then the Auto Trader places BUY-STOP and SELL-STOP orders 5 pips away from the current price. Whereas BalanceUsed parameter controls the lot size for these orders. Lower the BalanceUsed parameter lower will be the risk as it will place orders with small lot size higher the value high risk would be involved.
Immediate after the news event price started moving in one direction within a fraction of seconds. This triggers the pending order in that direction. As soon as one order gets triggered the Auto Trader cancels the other pending order immediately. This opened order is then controlled by the StopLoss & TakeProfit parameters which give a safe and profit-making exit mechanism. Once this order exits the Auto Trader does not trade again on its own. It has to be reattached to the chart to start for the next trading cycle.