To start explaining the whole process of avoiding weekend gaps using our Expert Advisors (forex robots) we would like to give you some information about what are gaps. Gaps occur when there are technical factors or fundamental in the Forex Market. These factors may lead the market to open at a higher or at a lower price than the closed price on Friday. The gap size could be from a few pips to hundreds pips.
Why Gaps affect Forex Robots performance?
Gaps are something very normal for the forex echange market. But when the gap size is really big this may affect forex robots performances. Specilly when there are some open trades remaining from the last week. Most of the forex robots have average stop loss level around 100 pips. Imagine that there is a gap greater than 100 pips on Monday morning and you have a few open trades. All of them can be closed on stop loss if the price go to the wrong direction. Therefore most of the forex trader don't like gaps and they are looking to avoid gaps using different techniques. The good thing is that all of our forex robots WallStreet 2.0 Evolution, WallStreet ASIA Evo and WallStreet Recovery PRO Evo have parameters which can be used to avoid weekend gaps.
How to avoid weekend gaps?
In order to avoid such a gap you can use FridayExit rules settings available in our forex robots. To be able to use LastTradeHour and ExitHour you have to set FridayExcit=true otherwise the other parameters will not be taken into consideration. We will try to explain you all these parameter with several examples because there are many combinations. Below you can find examples:
1. To stop trading on Friday at 18:59 pm and leaving the open trades over the weekend
2. To stop trading on Friday at 18:59 pm and closing all open trades at 20:00 pm
3. To stop trading on Friday at all:
ExitHour= you can set any hour when the robot will close all open trades. If you don't want the open trades to be closed then set ExitHour=24
IMPORTANT: These hours are based on the broker's time!
How to avoid losses from trading early on Monday morning?
If you want to start trading at a certain time on Monday and avoid losing trades due to gaps or unpredictable market then you can use "MondayStartHour" parameter. For instance, if you set MondayStartHour=10 then the robot will start trading on Monday at 10:00 am (broker's time).
Short description of all the used paramters above:
- MondayStartHour - The robot will start trading after this hour on Monday. If you want to set any custom value it must be between 0 and 23. To completely disable trading on Monday set MondayStartHour=24.
- FridayExit - if you wish to close all trades on Friday, you should use FridayExit=true
- LastTradeHour - the robot can trade until the end of this hour on Friday (including this hour).
- ExitHour - the robot will close all open positions at this hour on Friday. If you don't want the open trades to be closed then set ExitHour=24
If you have any questions concerning WallStreet Forex Robot 2.0 Evolution, WallStreet ASIA Evo and WallStreet Recovery PRO Evo feel free to get in touch with us or you can leave your comments below and we will answer as soon as possible.
Even though there are such settings for avoiding weekend gaps you are not obligated to use them. By default, all of these settings are disabled. According to our 17 years backtests, the weekend gaps don't reflect over the robot's performances. Therefore you can use these settings at your desire.
My broker has GMT +1. What settings should I have? I want to stop trading on Friday at 5 pm and to keep the opened trades if there are.
Alexandra: My broker has GMT +1. What settings should I have? I want to stop trading on Friday at 5 pm and to keep the opened trades if there are.
No matter what is your broker's GMT time then you have to set LastTradeHour=16 and this way it will trade until 16.59 pm:
We hope this is helpful for you. If you have other comments don't hesitate to comment or write to the support team.
Dear Wallstreet-Forex Team,
I wonder if you could add a feature where we can select which days the robot will trade and on which days it will not trade.
Hello Cornelius, Perhaps you are talking about Time Management System. Our developers have tried such system in WallStreet 2.0 Evolution and it doesn't improve the performance. But of course we will discuss this with our developers and they may implements such a system for one of the future versions.