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Target of this function:
– For a Buy order: Once the price closes below a prefered an EMA line, EA will close the trade.
– For a Sell order: Once the price closes above a prefered an EMA line, EA will close the trade.
Set up this function: it is simply to click on “By MA” on the “Trade Management” dashboard.
Discusion – Moving Average Based Close Trade:
The strategy of closing a trade based on the close price above/below an EMA line offers several benefits over using a regular moving stoploss along with the EMA line.
Firstly, this strategy allows traders to better capture profits while minimizing losses. By waiting for the candle to close above/below the EMA line, traders can confirm a trend reversal or continuation, leading to more accurate trade exits. In contrast, a regular moving stoploss may result in premature trade exits due to temporary price fluctuations, causing traders to miss out on potential profits.
Secondly, the strategy of closing a trade based on the close price above/below an EMA line can be more adaptable to different market conditions and trading strategies. Traders can adjust the EMA period and settings to fit their specific trading styles and market conditions, leading to more customized and effective trading outcomes. For example, in a period, prices respect EMA 30 while some others do EMA 50; in ranging market, prices do not respect any EMA level, this method should not be applied.
Overall, the strategy of closing a trade based on the close price above/below an EMA line offers several benefits over using a regular moving stoploss along with the EMA line, making it a useful tool for traders in forex trading.
Thanks for reading !
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MT4 Trade Manager EA 