In the realm of Expert Advisors (EAs), many claim to possess sophisticated algorithms or boast about their accurate strategies. However, from our experience, no one has been courageous enough to lay out their strategies in a comprehensive, step-by-step process. More often than not, the results are disappointing. It's easy to claim that an EA has a complex algorithm without being able to explain its strategy. BeeTrade takes this matter seriously, and we can honestly say that our EA is both sophisticated and revolutionary. We offer a fresh and innovative trading method that you won't find elsewhere, and we're here to explain exactly how BeeTrade achieves this.
Dynamic Hedging and Dynamic Averaging: The Core of BeeTrade
In a previous Article titled ‘Learn more about a Winning Strategy,’ we mentioned how BeeTrade EA primarily employs two main strategies: Dynamic Hedging and Dynamic Averaging. The Dynamic Hedging Strategy ensures that if an initial position—such as buying 0.10 lot of GOLD at the price of 2000—turns out to be incorrect, the EA takes the necessary steps to mitigate the loss. For instance, if the initial position fails to reach the Take Profit (TP) and instead suffers a loss, indicating a market trend reversal, the EA will execute a hedging position by selling 0.10 lot at the price of 1990, effectively locking the position.
Strategic Entries and Hedging Groups
When the price drops to 1950 and a reversal is detected, the EA will initiate a buy at the price of 1960 for 0.15 lot, utilizing a dynamic multiplier that adjusts the lot size based on the hedging distance between the previous buy and sell positions. This creates several scenarios:
1. First Hedging Group:
- If the price rises, the second initial buy is likely to close the two previous positions with profit.
2. Second Hedging Group:
- If the price continues to fall, say to 1935, the EA's hedging indicator will detect a further downturn, prompting another hedging action—selling 0.15 lot at the price of 1935.
Transition to Dynamic Averaging Mode
With two hedging groups established, if the market moves sideways, making the hedging strategy inefficient, the EA will switch to Dynamic Averaging mode. This mode allows the EA to close the last profitable position and proceed with a more dynamic averaging strategy.
Risk Management in Dynamic Averaging:
If the price continues to fall, the EA will not only continue averaging buy at significant support points but also has the capability to average down with smaller lot sizes. This is a crucial aspect of risk management, allowing the EA to adapt to extended downward trends without excessively increasing the position size. The dynamic multiplier in the Dynamic Averaging mode is designed to adjust the lot sizes based on specific market conditions, ensuring that the account does not face excessive risk due to lot swelling.
Profit Realization and Risk Management
For example, if the price continues to drop to 1900, the EA will close the last sell position of 0.15 lot with a significant profit of 350 pips. Subsequently, the EA will enter a buy averaging position of 0.20 lot, influenced by the Trend Reversal indicator. This results in a total buy weight of 0.10 + 0.15 + 0.20 lots, while the total sell remains at 0.10 lot since the 0.15 lot sell has been closed.
Closing Strategies and Overall Profit
If the price ascends, the EA will close all previous positions with profit. For instance, setting the target at Break-Even Point (BEP) + 50 Pips could yield an approximate total profit of $700 ( using standard lot for XAUUSD in XM Broker ), combining $525 from the 350 pips and $175 from the BEP + 50 Pips.
Adapting to Market Conditions
BeeTrade EA is designed to adapt to both sideways and trending markets. Each trade entry made by our EA is of a high quality. This means it carefully selects optimal points to enter the market. In addition, it is able to dynamically integrate indicators across multiple timeframes e.g. initial trade entry on M1, hedging entry on M5, and subsequent entries on M15. Smaller timeframes can provide information on short-term price movements, while larger timeframes offer better view of long-term trends. By combining these two perspectives, our EA can make more informed and strategic trading decisions. The optimal setup of BeeTrade EA Strategy is designed for swing to position trading. Unlike daily trading, where trade positions are taken more frequently, this strategy focuses on more extended timeframes. Finding the optimal entry can sometimes take days. When it comes to hedging, our EA is cautious, factoring in market volatility to determine whether there’s a genuine change in market direction or if it’s merely a result of extreme volatility. Therefore, traders must exercise patience akin to a sniper—waiting for the right moment to act, when the odds are in their favor as hasty decisions can lead to costly mistakes. In trading, precision and patience go hand in hand.
While no trading system can guarantee absolute safety, BeeTrade, as an EA creator, has diligently worked to provide clients with a trading experience that emphasizes consistent and steady account growth.
Conclusion: Transparency and Sophistication
BeeTrade prides itself on transparency, explaining the strategies we employ in detail. While we cannot cover every sophisticated features here, members will gain access to all our features along with the best strategy setups carefully crafted by our trading team. These can be run fully-automatically to maximize profits with minimal risk. We also provide guidance on navigating our EA to further boost profits. BeeTrade's approach is not just about trading; it's about trading smarter.
Stay tuned for more updates on the exciting functionalities that BeeTrade has to offer!”