The DiNapoli indicator which is used in this trading robot has a high probability of providing a signal to buy or sell due to any financial instrument being overbought or oversold. This is an advanced stochastic indicator based on techniques by Dinapoli. It gives good crossover signals.
This robot will automatically open and close positions based on this indicator.
You can purchase his book on Fibonacci Analysis at GoodReads here
You Can Use It For Trading Signals
You will have the option to turn auto-trading off and use it for an alert system, it provides both a windows pop-up and an email alert.
What is the DiNapoli Stochastic Indicator?
The DiNapoli Stochastic demonstrates smoother indicators and therefore gives fewer false signals in comparison with the traditional oscillator.
The indicator is written in accordance with the description given in the book by Joe Dinapoli "Trading With DiNapoli Levels". This oscillator smoothing method leads to a filtering of the most "noise" component of the price movement.
The DiNapoli Stochastic indicator can be used in the strategies oriented to a standard stochastic. However, the stronger smoothing can lead to the loss of an array of signals. It is recommended to apply any trend indicator for more efficient use of the indicator and its signals filtering.
What Do The Backtest Results Say?
We have tested this robot with various brokers and the results are all about the same, there may be small differences, we have included some example parameter settings to help you get started, and you should be able to also find settings for any other symbol.
1-Year Backtest with Historical Data
Please note that the results may vary slightly with each broker.
+38% Balance Increase
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Symbol: EURUSD - Date range: 04.04.2021 to 04.04.2022
Data: Tick-data (accurate) - Broker: IC Markets - How to load settings
Commission: 35 per million | Starting capital: 1000
5.36% max balance drawdown, 8.00% max equity drawdown
Why Is drawdown important?
How to understand backtest trade statistics
FREE News Release Manager
Also included with the trading system we provide the cTrader News Release Manager to help reduce losses when a high-impact news release occurs.
How to Optimise This Robot
We also provide information to help you run the optimisation module of cTrader Automate so that you can get suitable parameter settings for your preferred symbol you wish to trade.
How to Run a Backtest
If you are unfamiliar with using the back-test feature of cTrader then you can visit our Knowledgebase where we provide traders with detailed instructions.
How Do We Capture a Trend Reversal?
- If the Dinapoli result line crosses below the signal line and is falling and is above a threshold like 70 it is considered overbought and the price may drop.
- If the Dinapoli result line crosses above the signal line and is rising and is below a threshold like 30 it is considered overbought and the price may rise.
- A unique filter is added to check the distance between the result and signal lines when the curve occurs, this relates directly to the price action and improves the probability of a price reversal.
- Positions can be closed when the DiNapoli result line crosses unique levels for closing and as these levels are separate from the opening signals for much finer control and improved performance.
Advanced Risk Management Features
Having an automated strategy that relies mostly on technical indicators will need some form of protection against high impact market events like news releases or even low liquidity when the spreads are so high that when new positions are opened they could be many pips down from the start.
- Max spread - you can set a limit so that a position will not open if the symbol spread is too high.
- Stop loss and take profit.
- Trailing stop with pip step - when the price gains a set amount of pips to stop loss is moved (x) pips behind the price and as the price increases, it is adjusted a set amount of pips (step), find out more about the Trailing Stop Step Definition
- Trading hours - you can set the hours you want the robot to open new positions, there may be times when it is best avoided, but open positions will still be managed.
- Pause trading for high impact news releases - if you are using technical data analysis with your trading and rely on indicators then when a major news event occurs, the price can turn against you as much as 1% or 100 pips which can cause a large drawdown on your capital.
Telegram & Email Alerts Included
You can also use this robot as a signal provider to only send trade alerts instead of trading, you have an option of a pop-up window for when you are at your desk, email and an instant Telegram message directly to your mobile phone for free. If you need help setting up your Telegram account just download the free tool below.
Adjustable Settings & Features
We have made sure that you are not just buying a strategy that just opens and closes positions when the indicators are oversold or overbought, we have included the most useful risk management and alert features that you will need to get the most out of this robot.
Important Update *
The parameter Close DiNapoli reverse has been changed to Include close levels, when set to yes, it will use the close buy and sell levels to close a position, when set to No, it will ignore these levels.
Watch a Video Demonstration
The video has been uploaded to 1080p High Quality, so do not forget to set your U-Tube video quality to 1080p HD.
Duration: 25 minutes - Watch full screen on YouTube
How To Install
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform.
How To Download Trial?
We offer a 14-day trial for all of our products, you can either click on the link below the 'Add to Cart' button or the link below.
We offer a paid service to find the best possible settings for any given symbol, as with all automated trading systems the performance is only as good as the settings used.
Join Telegram Community
You can join a Telegram community and chat with other traders to discuss, share and ask for help.