EA Studio uses technical indicators to determine when to open a positions. Every indicator in the application has logical rules. These rules can be evaluated to either true or false.
For example, if you use a Momentum indicator with a logical rule “Momentum rises” that literary means that the application rises a Long signal when the Momentum value is higher than the previous one.
EA Studio trades only on satisfied rules. If you have more than one indicator, all of them must be satisfied for the current bar in order to produce an entry signal.
You have to set only the rules for the Long positions. The application sets the Short rules automatically.
The application will not open position in such case, because there are no rules to determine the entry direction.
You can add Entry Rules indicators by using the “Add a new entry rule” button. You can't have more than four Entry Rules indicators so the button becomes inactive when this limit is reached. When you click the button, the program opens an Entry Rule Indicator panel at the left side of the Editor. You can choose an indicator there and set its Logic and parameters.
All of the indicators express a logical condition that can either be fulfilled or not fulfilled. When creating a strategy, you should cover the Long trading case and the program will assume the reverse rules for the Short trades. In this sense the strategy uses symmetrical conditions for long and short positions. The general case is that the condition is fulfilled for a short position but not for a long one or vice versa. In some cases, the condition can be fulfilled in both directions of trade at the same time (when using ADX for example).
The strategy will trade Long when “AC rises” and will trade Short when “AC falls”. You can confirm that on the Indicator chart at the Report page.
When a strategy has more than one indicator, it will trade only if all indicators give permission for entry in the particular direction.
In that example we have two indicators. Following the strategy logic, the program will:
If one of the rules is not satisfied, the strategy will not trade.
There are cases when the strategy indicators produce equal signals in both directions. Let's see the following example:
That strategy will not trade because its rules give simultaneously permissions for both - Long and Short entries. If you set this example in the app and switch to the Short rules, you will see they will be equal to the Long rules. Since the conditions are ambiguous, the strategy acts in the safe way and prevents all entries.