Keywords
Some terms may be confusing...
Time frame code/TF code
The time frame code (TF code) is a number you can send directly from your mobile phone (or MetaTrader software) to your VPS server by adding it to the last decimal of the stop-loss price. For example, if you want to buy 1 lot of EUR/USD at 1.00300 with a stop loss of 1.00000 using the M5 time frame to execute the close price stop-loss, you can set the stop loss to 1.00002. The "2" in the last decimal will be interpreted as an instruction to check the close price stop-loss on the M5 time frame.
Fibonacci code/FB code
The last decimal of the take profit price is where you can send the Fibonacci code. The Fibonacci code will only be used when you want to enter the market at a specific Fibonacci retracement ratio. For example, if you observe the price starting to pull back to around 61.8%, after setting the stop loss position, this EA will periodically adjust the pending entry position until the price hits that level. Both the position and lot size will be adjusted automatically. It should be noted that sometimes, when the trend is too strong, the price may not hit your pending order price. In such cases, you will have to close the order manually.
Risk exposure/money-to-risk-per-trade
We calculate the lot size based on the amount of money you are willing to risk per trade. Risk exposure is the amount of money you are planning to risk in a single trade. For example, if you divide your account of 1000 USD into 10 parts, then each time you invest 100 USD to test if the market goes in the direction you are trading. You would lose around 100 USD if the close price hits the stop-loss. You earn a multiple of this amount if the price goes in the direction you wish.
Close price stop-loss
Close price stop-loss is the stop-loss that will execute after the bar has been closed at the specific time frame. When a new bar on the chart has been opened, for a buy ticket, we compare the close price of the previous bar and see if the bar has closed below the close price stop-loss. For a sell ticket, the ticket will be closed if the previous bar has closed above the stop-loss. It should be noted that both conditions need to be fulfilled for the ticket to be closed at the close price:
| Order type | Ticket close condition(A+B) |
|---|---|
| Buy ticket | A. The close price of the previous bar has closed below the preset stop-loss. B. The current Ask price is below the stop-loss. |
| Sell ticket | A. The close price of the previous bar has closed above the preset stop-loss. B. The current Bid price is above the stop-loss. |
Floating Point Stop-Loss / Floating Point Overloss Protection
The market moves very quickly during certain times, which may cause significant losses during highly volatile periods if we only execute the stop-loss at the close price. This utility can help close the trade during high-volatility time points when the floating loss has reached a specific level (e.g., 2.5 times the risk amount, adjustable parameter).
Trigger-based Stop-Loss
The conventional stop-loss method that is triggered when the price "touches" your stop-loss. For market tickets, you can switch back from the close price stop-loss to a trigger-based stop-loss by setting the last decimal of the stop-loss (TF code) to 0 or 9.
For more informaiton, please take a loot at trigger-based stop-loss