Analysis of the trading strategy of the Prop Master Expert Advisor – Trading Strategies – 13 June 2024


Trading strategies on financial markets play a key role in achieving success and stable profit. One of the most reliable and proven strategies is the strategy of level breakout, which is the basis for the operation of the Prop Master Expert Advisor. In this article we will analyze in detail what is the strategy of level breakout, how it works, we will consider examples of trading situations, advantages of this strategy, as well as how the Prop Master Expert Advisor copes with false breakout.

1. Definition and the principle of work of the level breakout strategy

The level breakout strategy is based on the definition of key support and resistance levels on the chart. These levels are important points where price often stops or reverses. When price reaches these levels, traders expect either a bounce or a breakout. A breakout occurs when price passes through a resistance or support level and continues to move in that direction.

The principle behind the level breakout strategy is:

  1. Identification of key levels: Prop Master Expert Advisor automatically identifies important support and resistance levels on the chart.
  2. Market situation analysis: When the price approaches these levels, the Expert Advisor analyzes the market situation to determine the probability of a breakout.
  3. Opening a trade: If the probability of a breakout is high, the Expert Advisor opens a trade in the direction of the breakout.
  4. Accompanying the trade: The Expert Advisor sets StopLoss and TakeProfit levels and uses a trailing stop to protect profits in case of a market reversal.

 

2. Examples of trading situations, where the level breakout strategy is used

Example 1: Breakout of a resistance level

  1. There is a clear resistance level at 1.8587 on the EURUSD chart.
  2. The price approached this level several times, but failed to break it.
  3. Once again the price is approaching the level of 1.8587, and the Prop Master Expert Advisor recognizes the increase in volume and acceleration of the movement.
  4. The Expert Advisor opens a long position (buy) when the level of 1.8587 is broken.
  5. The price moves sharply upwards and the trade is closed by TakeProfit, fixing the profit.

Example 2: Breakout of a support level

  1. There is a clear support level at 1.27552 on the GBPUSD chart
  2. Once again the price approaches the level of 1.27552, and the Prop Master Expert Advisor recognizes the increase in volumes and acceleration of the downward movement.
  3. The Expert Advisor opens a short position (sell) when the level of 1.27552 is broken.
  4. The price moves sharply downward and the trade is closed by TakeProfit, fixing the profit.

 

3. Advantages of the level breakout strategy

One of the main advantages is the fact that in most cases when key levels are broken, there is often a strong movement, allowing you to make a significant profit in a short period of time. Take a look at the picture below, where you can see how the price has made a sharp, non-stop movement after breaking a level.

 

It is also important to note that when you trade using the breakout strategy, you should always keep an eye on the market, because often a breakout can turn out to be false. However, Prop Master Expert Advisor is able to recognize a false breakout and allows you to fix profit in time even in such moments.

 

4. How the Expert Advisor copes with a false breakout

A false breakout is a situation when the price breaks through a support or resistance level, but then quickly comes back. Such situations can lead to losses if a trader fails to close a position in time. To avoid the situation when the breakout turns out to be false, the Expert Advisor has developed a high-performance trailing stop, which will fix the profit in time at the moment of market reversal. Thus, even if the breakout turns out to be false, you will get profit, although not as much as you expected.

 

In conclusion, I would like to say that it is not enough to understand the strategy correctly, you need to be able to apply it and trade in a disciplined manner, which the Prop Master Expert Advisor perfectly copes with. If you want to start using the Prop Master Expert Advisor for profitable trading, you can install it by clicking the link:

In addition, join the chat room, where you can always find out new information about the Expert Advisor, as well as get answers to all your questions about the Expert Advisor: @it_trader_chat



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