The Zone-Trader Tutor is an expert adviser (or trading assistant) written for the MT4 and MT5 trading platforms. Its underlying approach is to identify regions of excess supply and demand across different time frames and visually represent these on charts in a way that allows traders to quickly identify when to buy, when to sell and when to stay out of the market. Supply and demand zones can be filtered according to a large number of parameters.
Factors associated with the zone itself includes the depth of the zone, past penetration of the zone, the time since the zone formed, the time when the zone formed, or the number of prior retests/touches of the zone.
Price action parameters may include the size of candles as price approaches/leave the zone or the amount of time previously spent at the zone price level.
Parameters associated with the time that price comes back to retest the zone include the hour of the day, the day of the week, time of year, or the value of a technical indicator.
By selecting multiple criteria to filter zones, we can consider only those zones thought to be high probability trading opportunities. A simple example of applying criteria to filter zones is to include only those where trades taken on retests would be in line with the current trend as of the time of retest, which has a depth of fewer than 50 pips.
Understanding how each of these parameters impacts the overall probability of a trading opportunity achieving its goal is the key to success with this approach.
When a configuration of parameters (strategy) has been designed for the given market conditions, the next step is to trade the strategy consistently. To facilitate this, Zone-Trader provides an auto-trading capability. After successful back testing its possible to just turn on auto-trading and let the strategy be traded unattended.
Short and long term strategies can be traded simultaneously by simply setting up the EA on different charts and changing the unique identifier for each instance of the expert adviser.