The Hamster Grid EA is a type of automated trading software that uses a strategy to minimize drawdowns by overlapping negative orders. The EA analyzes market conditions and places a series of orders, which it then manages and adjusts as necessary to reduce the overall drawdown on the account. The Hamster Grid EA doesn’t trade very frequently, typically only once per day. This makes it a trading tool that tries to reduce the risk while still participating in the markets.
Hamster Grid EA Strategy
The Hamster Grid EA’s trading strategy is centered on the use of RSI (Relative Strength Index) indicators. When the EA algorithm detects favorable market conditions, it will open a new order and either close it or use its unique grid method (which is not recommended due to the risk involved in the strategy) to manage the trade if it goes negative. This grid method involves placing a series of orders at predetermined levels, which tries to reduce the overall drawdown on the account. While it may be possible for traders to manually open an order, which is generally not recommended to do so as the EA algorithm is designed to make these decisions on its own. However, it’s a good idea to deactivate the EA before any major market movements.
RSI (Relative Strength Index)
RSI, or Relative Strength Index, is a technical analysis indicator that measures the strength of a particular price action over a certain period. In the context of the Hamster Grid EA’s strategy, RSI is used to identify market conditions that are favorable for opening new orders. The EA’s algorithm will monitor the RSI indicator and look for oversold or overbought conditions that may suggest a potential reversal in price action. When these conditions are detected, the EA will open a new order and use its grid method to manage the trade until the trade is closed.
Hamster Grid EA Features
- The Hamster Grid EA has a minimum account balance requirement of $500, according to the developer.
- The EA is optimized to work best on the EUR/USD currency pair, but it can also perform well on other major pairs, as mentioned by the developer.
- The Hamster Grid EA operates on the H1 time frame, as recommended by the developer.
Hamster Grid EA Settings
- RSI_PERIOD – period for calculating the relative strength index;
- UP_LEVEL – upper bound;
- DN_LEVEL – lower bound;
- RSI_TIMEFRAME – timeframe for calculation;
- START_LOT – initial lot;
- LOT_MULTIPLIER – lot multiplier in the order grid;
- MAX_LOT – maximum lot;
- STEP_ORDERS – order grid step;
- STEP_MULTIPLIER – order step multiplication factor, if = -1 then it is not used;
- MAX_STEP – maximum order grid step;
- OVERLAP_ORDERS – from which order to enable the order overlap function;
- OVERLAP_PIPS – minimum profit in pips for closing unprofitable orders;
- STOPLOSS, TAKEPROFIT – stop loss and take profit in pips, if = -1 is not used;
- BREAKEVEN_STOP, BREAKEVEN_STEP – level and step of breakeven, if = -1 is not used;
- TRAILING_STOP, TRAILING_STEP – trailing stop level and step, if = -1 is not used;
- MAGIC_NUMBER, ORDERS_COMMENT – magic order number and comment;
- START_TIME, END_TIME – time at which it is allowed to open orders. if = “00:00”, then not used;
Hamster Grid EA Summary
Overall, the Hamster Grid EA uses RSI indicators to identify market conditions for opening new orders. Moreover, the EA involves the grid method which is one of the most dangerous trading methods in the financial market, places a series of orders at predetermined levels to try to reduce the overall drawdown. Thus, using this method involves risks, and it’s not recommended. However, the use of demo accounts is recommended to test the EA’s performance and understand its strategies. Lastly, there is no guarantee of profits in using the Hamster Grid EA or any trading software.
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