This is a strategy file for Chart Logic, position trading the Bands Counter-Trend strategy.
This strategy will trade a single position at a time; if you're already in a trade then it will not begin a new position in either direction (no hedging). The primary market condition for the entry is using the Bands technical indicator, which is one of the built-in technical indicators in MT4 and supported by Chart Logic. In addition we also wait for a confirmation of the market condition from the H1 RSI(14) 70/30. Once the market conditions have been satisfied, if a price action signal confirms the pullback movement, then the position is started.
The "Configuration" logic set at the top gives an easy way to adjust the overall settings. RIsk is set to 0.25%, the stop loss distance to 40.0 pips. There are two exit conditions defined, either reaching 0.5% profit target or 40.00 pips on the basket average. So these will be 1R-2R positions when they hit targets.
When any trade is opened there's a condition to detect the presence of trades with a stop loss and remove the stop loss. This is needed when position trading, since we are not going to close the trade for a loss at the stop loss distance, but instead begin looking for opportunities to scale in.
There are two "Scale In" logic sets, for long and short. This demonstrates a technique in Chart Logic to find the farthest trade in drawdown and detect when price has gone some pre-determined distance farther than this trade. In this case when price has gone more than 40 pips into further drawdown from the last trade, it will begin to look for opportunities to scale in. It will only scale in when we get another price action signal; these signals are identical to what's used for the initial entries, we're just using them in multiple places.
And then the exit conditions test for the profit and distance targets, and closes all trades in the position when this is achieved.
The remaining logic sets in the file are designed to provide feedback on the chart so you can track what's going on when the strategy is running. There's the Position Panel which shows all of the position data (also available separately). And there are lines on the chart for the scale-in distance, profit and distance targets, and the position average lines.
