The cTrader Fractal Chaos Bands (FCB) indicator examines a certain number of selected time periods as chosen by the trader to plot a shaded band above and below the asset's price. The upper fractal line is formed by charting the high prices of a financial instrument, while the lower fractal line is formed by charting the price lows. In essence, the Fractal Chaos Bands provide a comprehensive overview of price movements, sifting out inconsequential price fluctuations.
Fractal Band Calculation
The calculation of fractal bands typically involves identifying patterns on a price chart and using them to determine potential support and resistance levels, they are sets of five consecutive bars where the middle bar has the highest high (or lowest low) and the two bars on each side have successively lower highs (or higher lows). These patterns can help traders identify potential turning points in the market.
Add a Confirmation Indicator
To enhance the validation of Fractal Chaos Band signals, a Simple Moving Average can be used and with the moving average an upward cross from below verifies an upward trend, while a downward cross from above confirms a downward trend.
How The Fractal Bands cBot Works?
The Fractal Bands Chaos (FBC) cBot works by opening a buy trade when the candle closing price is greater than the FBC's highest price, it will also open a sell trade when the candle closing price is less than the FBC's lowest price.
if (Bars.ClosePrices.Last(1) > fbc.High.Last(1) && Bars.ClosePrices.Last(2) <= fbc.High.Last(2))
if (Bars.ClosePrices.Last(1) < fbc.Low.Last(1) && Bars.ClosePrices.Last(2) >= fbc.Low.Last(2))
The Fractal Chaos Bands create a channel across the price chart and by observing the gradient of these bands it provides an insight into the market's trend. To generate trading signals, the cBot will wait for candlestick breakthroughs beyond the indicator's upper or lower bands.
How to Improve this Strategy
There are many ways to improve this cBot, the first one is to add additional indicators for confirmation or additional risk management like market hours, trailing stop losses etc. If you cannot add these extra features yourself contact us.
Stop Loss & Take Profit Calculation
A standard stop loss and take profit as well as position size can be set from the cBots parameter settings.
You can add risk management and other trade rules yourself or by contacting our development team.
How to Optimise the Settings
We have also created a simple video showing how you can find the optimal parameter values, it uses another cBot as an example.
How to Attach Indicator to Chart
You do not need to attach the Fractal Chaos indicator to your chart when you run the cBot, but it is a good idea to visually see the indicator to check your trade rules for opening and closing trades and any risk management.
How To View The Source Code
To view the source code for this cBot, you will first need to make sure you have downloaded and installed cTrader Desktop, you can also scroll to the bottom of this page for instructions on how to install the cBot. Once installed you will have the cTrader application open, you need to navigate to the Automate application and click on the name of the cBot, the source should show in the right-hand window.
If you need more help watch a video tutorial on how to use cTrader Automate.
Learn Algorithmic Trading
In this instructional guide, we aim to assist you in acquiring the necessary skills to engage in market trading through automated trading strategies (cBots) using the cTrader Desktop trading platform. By the conclusion of this tutorial, you will gain the confidence to employ a cTrader cBot alongside the Algo application of cTrader, enabling you to automatically execute and handle your market orders. This course is designed to familiarize novice traders with the fundamental principles of algorithmic trading utilizing the cTrader platform.
Learn Microsoft C# for Algo Trading
If you are new to coding your own cTrader cBot for automated trading the following Microsoft C# course will help you modify the starter kit cBot in this download to add new features for your own personal trading strategy.
Algorithmic Trading Facts
A significant number of traders venture into algorithmic trading with the misconception that they have discovered a foolproof strategy that guarantees effortless wealth. However, this notion is far from reality. It is crucial to read this article, as it can save you valuable time and money.
How To Install & Remove
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.
Any Questions?
If you have any questions, please first search our coding help forum for the answer, if you cannot find it, post a new question.
Need Coding Help?
We can help you modify this cBot for your own personal trading strategy, Contact our team for a quote.
Need a Broker
If you are still looking for a broker you can trust, take a look at our best cTrader broker site.
