Wednesday, March 31, 2010

Two VOM shorts on EURUSD

Earlier, I posted an example of two VOM EAs with opposing virtual orders, resulting in no net position at the broker.

Today, there is an example of the two EAs agreeing on price direction. Both the FrAMA Cross EA and the Support Resistance EA are short on EURUSD, and it is instructive to see how this ends up in the VOM and at the server.

FrAMA Cross EA on daily EURUSD chart
Virtual short 0.1 lots at 1.33978. This has a wide protective virtual stoploss 500 (or 5000, in 5 digit terms) pips away.
This was the first order executed, and the server stoploss was set at 550 pips, ie virtual stop plus 50.

Support Resistance EA on hourly EURUSD chart
Virtual short 0.1 lots at 1.34895. This has a virtual stoploss 85 (or 850, in 5 digit terms) pips away.
This is what happened to the server position when this second order was executed
  • The server lots moved up to 0.2 short
  • The server position open price is now the average of the two orders - this is automatically calculated by the broker.
  • The VOM moved the server stoploss down to the tightest virtual stoploss plus 50 (1.36195), which can be seen on the daily chart.
If the virtual stoploss for this EA is hit, then the server stoploss will revert back to the much wider stoploss of the FrAMA Cross EA

All this careful maintenance of the server stoploss at the tightest stop plus 50 (500) pips is there for disaster protection in the event of Internet or PC failure.

1 comment:

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