Smoothing Average

Smoothing Average is a client-side VTL auto trader based on the Simple Moving Average (SMA) indicator. The concept behind the SmoothingAverage auto trader is to use the trending characteristics of the SMA (Simple Moving Average) to identify trading ranges and directions, and then place trades when prices is trading in a band defined by the SMA.

The auto trader expects the price to trade within a range defined the Smoothing (points) user parameter of the SMA. It identifies a trading band of Smoothing points above and below the current price and places reversal trades when the price reaches outside this band. If there is no open trade, and the price is below the SMA plus Smoothing points, a SELL trade is opened for the specified lots in parameters. On the contrary if the price is above the SMA minus Smoothing points, a BUY trade is opened for the specified lots.
This auto trader uses identical exit management whereby a SELL trade is closed if the price reaches above the SMA pus Smoothing points, or, closing a BUY trade when the price falls below SMA minus Smoothing points.

Configurable Inputs:
1.Period_MA – The period over which the Simple Moving Average (SMA) used by this auto trader is calculated.
2.Risk – The multiplier used to calculate the lot-size of each trade opened by this auto trader. The lot-size is calculated by multiplying this Risk parameter with Account Equity and Point size. So, Lot Size = Risk x AccountEquity x Point
3.Smoothing – The distance in points above and below the current which form a trading band for the SmoothingAverage auto trader to place trades.

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:ProgramDataVertexFX Client Terminals”Company name”VTL10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.