vsa_test

Here's a breakdown of what the trading script does, explained without technical jargon:

This script is designed to automatically place buy or sell orders in the trading market based on a set of rules.

1. Initialization and Memory:

   • The script starts by remembering the most recent market bar it analyzed. This helps it avoid re-analyzing the same data repeatedly.

2. Order Management:

   • The script first checks if there are any existing open orders. If there aren't any, it proceeds to look for opportunities to open new ones.

3. Opportunity Identification (Entry Logic):

   • Position Calculation:

     • The script calculates a number (OPEN_POS()) to determine possible entries.
     • It looks at the high, low, and closing prices of the most recent market bar.
     • It calculates the relative position of the close to the high and low.
     • If the closing price is relatively high, it returns 1, suggesting a possible buy. If relatively low, it returns -1, suggesting a possible sell.

   • VSA Consideration (Optional):

     • The script optionally uses a Volume Spread Analysis (vsa()) function to refine entry consideration.
     • The vsa() function looks at recent market volatility by calculating the difference between values of Average True Range over different timeframes, multiplied by input weights.
     • If VSA is enabled (mod_vsa = true), the script needs vsa() to return a positive value for a buy or a negative value for a sell.

   • Time Restriction:

     • The script has certain hours of the day where it will not place trades. This is controlled by the hh, hn, hb, hc, and n parameters.

4. Order Placement:

   • If the calculated position suggests a buy (OPEN_POS() > 0), and the VSA, if enabled, confirms, and the current hour is not restricted, the script places a buy order.
   • If the calculated position suggests a sell (OPEN_POS() < 0), and the VSA, if enabled, confirms, and the current hour is not restricted, the script places a sell order.

5. Order Parameters:

   • Lot Size: The script uses a specified lots size for each order.
   • Stop Loss: It sets a stop_loss to automatically close the order if the market moves against the trade by a certain amount.
   • Take Profit: It sets a take_profit to automatically close the order and secure profits if the market moves in the trade's favor by a certain amount.
   • Magic Number: It assigns a unique "magic number" to each trade so the script can identify and manage its own trades separately from any other trading activity. Buy orders use the MAGIC number, while sell orders use MAGIC+1.