Polynomial Price Channels are a great tool to show you the overall direction a price is heading for a specific duration of your choosing and this will allow you to see the big picture that many traders tend to ignore. With this auto-helper robot, you can make sure that you never miss a trade opportunity while you are away from your workstation, even though the robot will automatically open positions as well as close them on profit targets it is to be used as a semi-automated trading system and will require the trader to get involved with managing positions.
The image above shows where the robot helper opened a short position when the price touched the outer PRC band.
What Is a Polynomial Regression (PRC) Indicator?
The word PRC stands for Polynomial Regression Channel. This is a regression indicator that is used on charts. A linear regression indicator draws a straight line of best fit on a chart. The PRC indicator applies the polynomial function to the linear regression functions to adapt itself to market flow. Since they are regression bands that self-adjust for volatility.
How Does Polynomial Regression Work?
In statistics, polynomial regression is a form of regression analysis in which the relationship between the independent variable x and the dependent variable y is modelled as an nth-degree polynomial in x. Simply put polynomial regression is an attempt to create a polynomial function that approximates a set of data points. With polynomial regression, the data is approximated using a polynomial function. A polynomial is a function that takes the form f( x ) = c0 + c1 x + c2 x2 ⋯ cn xn where n is the degree of the polynomial and c is a set of coefficients.
How Does The Robot Open Positions?
You will see on the chart above 5 channel lines, the middle line is the average of the symbol price and the 2 lines above and below the middle line are the inner and outer bands as described above, the idea is that the trader will already have a manual system that they use for trading using this indicator and they wish to automate the opening of the trades.
Take Profit Targets
You can automatically close positions with a profit by trailing the PRC indicator bands, you have the option of the middle, inner or outer band, the example below shows a middle band target together with the pip distance.
Parameter Settings Explained
All the settings for this robot are explained on the product support page by following the link below, this should help you get started.
Looking for Trade Alerts Instead?
Watch a Video Explainer
The video has been uploaded to 1080p High Quality, so do not forget to set your U-Tube video quality to 1080p HD.
Product Help & Support
If you need help with installation and how to use this product, visit the support page.
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.
Join Telegram Community
You can join a Telegram community and chat with other traders to discuss, share and ask for help.