NewStorm - User Guide
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NewStorm EA is a sophisticated tool designed to navigate market volatility using dynamic features and risk controls, such as ATR‐based spacing, dynamic lot allocation, smart drawdown reduction, trailing stops, and news-triggered trade initiation. This EA can operate in multiple modes and provides an on-chart panel for manual control and real-time information. While inherent risks exist, taking calculated risks—with proper risk management measures—is essential for advancing in trading. By carefully configuring the parameters detailed in this guide, you can strike a balance between risk and reward, positioning yourself for progress in the markets.
Grid trading with an EA inherently involves risk, but without embracing some level of risk, progress in trading is nearly impossible. The dynamic nature of markets means that even though a grid EA is designed to capitalize on market movements, it exposes you to volatility that can result in losses. However, calculated risk is a vital component of growth and opportunity. By implementing robust risk management measures—such as drawdown reduction, trailing stops, and proper position sizing—you can safeguard your capital while still positioning yourself to take advantage of potential gains. Ultimately, measured risk is not just an element of trading; it's the very catalyst that propels you forward.
Configuration Recommendations
Configuration Recommendations
Risk Management: Grid trading involves risk, but without taking any risk, progress is nearly impossible. The EA includes measures such as drawdown reduction, trailing stops, and dynamic allocation to help you manage risk. Adjust the Initial Lot Size, Lot Multiplier, and Maximum Trades Allowed to match your risk tolerance.
Volatility and Dynamic Settings: Enable Adapt To Volatility and configure ATR parameters if you want the grid to respond to market conditions. Similarly, use dynamic allocation settings to allow automatic adjustments as positions build.
News Triggering: To trade based on news events, enable Use News As Trigger and configure the associated settings. Verify that your news source parameters match your system’s setup.
Trading Time Window: Activate the time window setting to restrict trading to specific hours, helping avoid low liquidity periods.
Panel Interaction: If Show EA Panel is enabled, use the on-chart buttons to manually trigger or close trades, enhancing control over the EA’s operation.
The inputs Explained
A. GENERAL SETTINGS
A. GENERAL SETTINGS
EA Comment: This acts as the EA’s identifier and appears in log messages and trade comments.
EA Magic Number: Uniquely identifies the EA’s trades. Use a unique number if running multiple EAs on the same account.
Manage Old Trades: When enabled, the EA manages previously opened trades that match its criteria by loading all long trades in one basket and all shorts in another as long as they have the same magic and symbol.
EA Trigger Mode:
Grid Test Mode
News Mode
Show EA Panel: Displays an on-chart panel for manual control and status monitoring.
Print Log: This will allow the EA to include its logs in the Expert Tab, which allow the user to have a comprehensive step-by-step on the current logic
B. TRADING SETTINGS
B. TRADING SETTINGS
Allow EA to take Buy: Permits the EA to open buy trades.
Allow EA to take sell: Permits the EA to open sell trades.
Maximum Trades Allowed Per Batch: Sets the maximum number of trades that can be opened in a grid batch.
Initial Lot Size: Determines the lot size of the first trade in a grid batch.
Virtual TP (Points - 0 not used): (Points - 0 not used). A virtual take profit level in points. (0 disables it.)
Virtual SL (Points - 0 not used): (Points - 0 not used). A virtual stop loss level in points. (0 disables it.)
Activate Trailing Stop: Turns on the trailing stop feature to protect gains.
Profit in points to activate trailing stop: The profit level (in points) required to start trailing the stop loss.
Trailing step in points: The incremental step (in points) by which the trailing stop is moved.
Example for a $100 000 Account (Risk = 1 % per Full Grid)
Example for a $100 000 Account (Risk = 1 % per Full Grid)
Risk Budget: 1 % of $100 000 = $1 000
Grid Spacing: 200 points
Pip-Value (XAU/USD): $1 per point per standard lot
Levels (N): 10
Multiplier (m): 1.5
Broker Minimum Lot: 0.01 lots
1. Compute total drawdown per 1 lot (no rounding)
Σj=1→10[1.5j−1 × (10−j+1) × 200] = (1·10 + 1.5·9 + 2.25·8 + … + 38.44·1) × 200 ≈ 63 998
2. Solve for exact initial lot
Lexact = $1 000 ÷ 63 998 ≈ 0.0156 lots
3. Apply minimum-lot rounding
L₀ = max(0.01, ceil(0.0156÷0.01)×0.01) = 0.02 lots
4. Worst-case drawdown
Distance for Trade j = (10−(j−1))×200 points. Sum of (rounded lot × distance) = 0.02×2000 + 0.03×1800 + … + 0.93×200 ≈ $1 506 → 1.51 % of account
Takeaway:
– You must start at 0.02 lots given a 0.01 minimum.
– True worst-case drawdown ≈ $1 506 (1.51 %).
– To hit exactly 1 %, adjust spacing, multiplier or risk %.
You want to do your simulation, use "Trade't Grid Risk Simulator"
Everyone should do their own analysis; this is simple math, not financial advice.
C. NEWS TRIGGER
C. NEWS TRIGGER
Allow multiple batches: Permits activation of multiple news-triggered batches simultaneously.
Currency: Select the currency you need to trade its news, the EA will detect if it needs to buy or sell based on the news impact on the currency.
Specific News: Add specific news separate by "," to only allow the EA to trade those news. Make sure the text matches Investing.com calendar.
High Impact News (None not used): Defines the color for high-impact news events (ignored if set to none).
Moderate Impact News Color (None not used): Specifies the color for moderate-impact news events.
Low Impact News Color (None not used): Specifies the color for low-impact news events.
Inverse Trades: Inverts the news-based trading logic if required by your strategy.
1- News are received from investing.com
2- If you are using news, don't forget to allow web requests to the following URL: https://sslecal2.investing.com/
3- The news filter is incompatible with back testing.
D. TRADING TIME
D. TRADING TIME
Set Time to trade: Enable to restrict trading to a specific time window.
Trading Start Hour (0-23): The hour when trading is allowed to begin.
Trading Start Minute (0-59): The minute marking the beginning of the trading window.
Trading End Hour (0-23): The hour when trading stops.
Trading End Minute (0-59): The minute marking the end of the trading window.
E. GRID ESSENTIAL
E. GRID ESSENTIAL
New Candle: Enable the EA to only check for new trades on new candle, if disabled the EA will check on tick.
Lot Multiplier: The lot size increases for subsequent trades by this factor.
Grid Distance (Points): The point interval between each grid trade entry.
Adapt To Volatility: Enable to adjust grid spacing based on market volatility.
Tolerance: The tolerance factor is applied to calculate the grid distance. If you are trading M15 you can use as example 0.5 to 1, while trading H4 you can use 3 to 6 as value.
F. DYNAMIC GRID
F. DYNAMIC GRID
Enable dynamic allocation: Activates dynamic adjustments to lot sizes and grid distances as trade count increases.
Start after trade number: Dynamic allocation begins after this many trades are opened.
Factor to adjust distance: Multiplier to dynamically adjust the grid distance.
Factor to adjust lot size: Multiplier applied to adjust the lot size for subsequent trades.
E. SMART DRAWDOWN REDUCTION
E. SMART DRAWDOWN REDUCTION
Enable drawdown reduction: Activates the drawdown reduction mechanism.
Start after trade number: Begins drawdown reduction after this many trades are opened.
Minimum Profit (Money): The minimum profit required to close last and first trade opened combined. The drawdown reduction measures are applied so as to close old trades as soon as possible.
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