I Rebuilt “Waka Waka” ($2800 Trading Bot)… From Scratch (Part 1)

Finance / Market-Relevant Content (EA Behavior)

• Builds/rebuilds a Forex-style grid/martingale EA that:
  • Opens an initial trade primarily using RSI thresholds.
  • Adds grid positions at distances based on:
    • A fixed base spacing, and
    • An optional ATR-based “smart distance” multiplier (volatility-adjusted spacing).
  • Uses weighted take profit across all open grid trades (weighted by lots/position size).
  • Scales lot sizes with a martingale/grid multiplier pattern and aims for a recovery-style exit.
  • Includes extensive risk controls, such as:
    • Spread and drawdown limits
    • Floating drawdown limits
    • Hedging toggle
    • Margin checks
    • Time/day filters
    • Rollover handling
    • Additional execution protections

No explicit “not financial advice” disclaimer was stated in the subtitles.

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Instruments / Tickers Mentioned

• AUD/CAD, NZD/CAD (used as examples for backtesting/verification)
• SP500 (referenced as an index for a potential “news/crash filter” concept; implementation details unclear)
• Mentions:
  • “multi-currency EAs”
  • broker behavior factors (e.g., spreads, “stop-loss hunting”)

No single stocks or ETFs were explicitly named.

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Indicators / Parameters Explicitly Referenced (Core Inputs)

• RSI(20) with opening thresholds:
  • RSI ≥ 65 (“above 65”)
  • RSI ≤ 35 (“below 35”)
  • RSI described as 50 ± 15, which corresponds to 65 / 35
• Standard deviation ~36 (used as a substitute concept for Bollinger Bands)
  • Noted mismatch:
    • Inputs indicate Bollinger Bands period 35
    • Chart shows standard deviation 35/36
• ATR(96) and ATR(672)
  • Used for volatility-based “smart distance” scaling
• Bollinger Band period 35
  • Mentioned, though the EA effectively computes via standard deviation internally

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Methodology / Step-by-Step Framework

Entry Trigger (Initial Grid Start)

• Monitors signals on a new bar/candle (not every tick).
• Opens the first (“base”) trade when RSI crosses extreme thresholds:
  • RSI ≥ 65
    • Direction implied via a “reverse strategy” option
  • RSI ≤ 35

Grid Spacing

• Base trade distance: 35 pips
• Optional “smart distance” adjusts spacing using volatility:
  • Conceptually: multiplier ≈ ATR(96) / ATR(672)
  • Smart spacing:
    • smart distance = 35 × (ATR96 / ATR672)
• If smart distance is off, spacing stays near 35 pips (with small effects from bar-close timing).

Lot Sizing / Martingale Scaling

• Base lot sizing is chosen using a selected method (e.g., fixed, deposit-load-based, or balance/equity-based).
• Then grid levels apply lot multipliers, for example:
  • Level 1: base lots (example shown: 3.64)
  • Levels 2 and onward: double (e.g., 3.64 → 7.28 → 14.56…)
  • From the “sixth trade” onward: multiplier changes to 1.6 (per subtitles)

Take Profit Logic (Grid Exit)

• Initial TP: 10 pips from the first trade.
• After additional martingale/grid positions are open:
  • Compute weighted average entry price across open positions (weighted by lots).
  • Set grid take profit to reach the target TP distance from that weighted average.
• Option exists to use simple average instead of weighted average.

Optional Grid Start Level

• “Grid level to start” can delay true martingale sizing.
  • EA places early “bookmark” trades at initial levels using minimum lot (0.01).
  • True martingale scaling begins at the chosen level (e.g., “start at level 3”).
• Option: treat earlier levels as not truly counting toward lot escalation (or keep original profit/lot behavior).

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Key Numbers & Thresholds Called Out

• Listing price (MQL marketplace mention): $2,800
• RSI period: 20
• RSI thresholds: 65 / 35 (based on 50 ± 15)
• Base grid spacing: 35 pips
• ATR periods: 96 and 672
• Initial take profit: 10 pips
• “Smart TP distance behavior”:
  • Mentioned as potentially using weighted average and then applying a TP distance rule (often described as 10 pips unless customized)

Risk preset / deposit-load examples mentioned

• 25% annually → 0.25% deposit load
• 40% → 0.5% deposit load
• 80% → assumed ~1.0% deposit load
• 120% → 1.5% deposit load

Dynamic lot sizing example

• 0.01 lot per every $10,000 of balance or equity (with minimum lot basis)
• Minimum lot during bookmark levels: 0.01

Rollover window

• 23:45 to 0:15 (used for spike/spread avoidance handling)

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Explicit Risk Management / Protections Mentioned

• Max spread
• Max slippage
• Minimum free margin validation

• Maximum floating drawdown, with both:

  • Percentage-based control
  • USD-money control (“in dollars”)

• Drawdown behavior options:

  • Close trades
  • Stop trading / prohibit new grids
  • Stop until restart
  • (multiple operational modes)

• Rollover/spread protection

  • Option to stop taking/closing during rollover
  • Possibly remove TP/SL during rollover

• Hedging toggle

  • “Allow hedging” (e.g., run buy grid + sell grid on the same symbol)

• Trading time controls

  • Hour to start/stop
  • Trade days (Monday–Friday)
  • Mention of not opening new grids on certain days

• News filter

  • “Jerome Powell / news” commentary referenced, though specifics weren’t fully detailed

• Crash filter concept

  • Example: monitor SP500 and stop trading if it drops by a threshold
  • Subtitles suggest 3%, but the linkage was unclear

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Disclosures / Cautions

• No explicit legal disclaimer like “not financial advice” was included in the subtitles.
• The host repeatedly cautions that grid/martingale strategies are risky:
  • “It will blow unless you have tremendous amount of deposit”
  • Emphasizes concepts like taking profit out to manage risk
  • Acknowledges that drawdown is still likely/inevitable

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Presenters / Sources Mentioned

• The EA builder is credited as “Mr. Caffrey” (builder of the original EA).
• The speaker is not clearly named in the subtitles (only a joke reference: “James Bond 007 stuff”).
• No other presenter/source is clearly identified.