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Guidelines for STELZ 2.0 EA safe usage
Basic settings
- Currency pair: EUR/USD
- Timeframe: M15
Minimal deposit amount
The minimum recommended deposit for safe trading is $1000.
If you plan to start trading with a smaller amount, that’s not a problem. In this case you should use cent accounts which allow you to start with an amount of $10 (1000 cents). You can open a cent account with some of the recommended brokers.
Risk management
Based on many years of experience trading the STELZ 2.0 EA on live accounts, it can be noted that the monthly income from such trading can vary from 5% to 120% per month. As for any other trading strategy, the following rule is valid here: the higher the yield, the higher the risk.
A group of parameters aggregated in the MONEY MANAGEMENT section is intended for managing the risk level:
Default parameter values are set for conservative trading with a $1000 deposit and 1:500 leverage. There are options of setting up the risk level both in manual and automatic modes.
Fine tuning
To understand the dependency of the risk level on the value of input parameters, the following table might be useful:
| Risk level | Low | Medium | High | Extreme |
|---|---|---|---|---|
| Lot per $1000 | 0.01 | 0.05 | 0.08 | 0.1 |
| Risk level | Lot per $1000 |
|---|---|
| Low | 0.01 |
| Medium | 0.05 |
| High | 0.08 |
| Extreme | 0.1 |
Auto-tuning
To take trading automation to a new level, the automatic setting of the risk level can be used. This is activated by setting the MM_Mode parameter to Lot per $1000 or Auto Lot Size.
When Lot per $1000 is set, the Fixed Lot Value and Risk parameter values are ignored. The setting of the risk level in this mode is performed by setting the parameter Lot per $1000.
EXAMPLE: With the value of this parameter 0.01 and initial deposit of $1000 the first order will be opened with the volume 0.01. If the deposit grows more than $2000, the lot will increase to 0.02, over $3000 — to 0.03 and so on. Net Equity value is taken as the basis for calculations.
In the Auto Lot Size mode more intelligent risk management is implemented. Here not only the Equity value is considered, but also the account leverage and the possible number of deals in the trading position. The value of this parameter can be changed from 1 (low risk) to 10 (extremely high risk). This mode with the Risk parameter set between 1 and 5 is recommended for most traders.
So, the optimal solution is a combination of parameters MM_Mode = Auto Lot Size and Risk = 1 … 5:
Loss limitation
By default, all trades opened by STELZ 2.0 EA do not have a Stop Loss order. This is part of the trading strategy. As practice shows, forced setting of Stop Loss in each trade often leads to the loss of opportunities to make a profit with insignificant price reversals.
The EA has a mechanism for alerting the trader about low margin. This mechanism allows you to promptly learn about the possibility of obtaining additional profits by adding funds to the deposit. This is especially relevant at medium and high risk levels.
At the same time, some traders prefer to strictly limit the losses. For such traders it is possible to place a Stop Loss order for all open positions in general. To activate this mode, the Use Equity Stop parameter should be enabled (by default its value is false). After that using parameter Total Equity Risk, % one can specify the maximum permissible equity drawdown level, upon reaching which all open positions will be forcibly closed. Also the possibility of opening new trades by the end of the day will be disabled.
Restriction of maximal lot
If you want, you can limit the maximum value of the order volume. To do so, set the value of Maximum Lot Size parameter other than zero.
Other parameters
It is recommended to leave the default values for all other parameters. If you want, you can find more information about them here.
Important notes
- The leverage of the trading account on which the EA operates should be at least 1:500.
If your broker does not provide a leverage of 1:500 or more, you should choose another broker from the list of recommended ones. - Like any trading robot, STELZ 2.0 EA for correct work must be installed in the terminal, which is running and has a stable connection to the Internet as long as the market works (24/5). So installing MetaTrader on VPS is the right solution.