Magic Stick Usage Example

The following example will present how to use the Magic Stick commands in a bullish market. All trades and trade adjustments are hipotethical and should not be considered as a trading strategy. (The test was done with the help of the Strategy Tester in Metatrader 4.)

First we create the trend lines and set the commands (in the description field of the given trend line):

These commands (descriptions) can be also checked in the "Objects List" (Ctrl+B) of the chart:

Magic Stick will wait for a break of the trend line before starting an order:

Once the order is started, stop loss will be placed with 20 pips below "Horizontal Line 2" (the trend line with the highest value having buySL command in its description field) and take profit will be placed with 10 pips below "Line 3" (the trend line with the highest value having buyTP command in its description field):

The buyStart command is also removed on order start:

Partial take profit can be specified also with the buyTP command but only if there is another trend line with a higher value having a buyTP command in its description field. (The furthest take profit will be used as a final / full take profit, even if the second parameter would mark it as a partial take profit command.) The partial buyTP command will be removed from the description field of the trend line when the market hits the specified price.

Profit covering (protecting your profit) can be also set using trend lines. When the market reaches the price 5 pips below "Line 4" (the trend line with the buyProfitSL command), Magic Stick will replace this command with a buySL command setting the S/L 50 pips below the trendline ("Line 4").

It is also important to note that Magic Stick will adjust the T/P of the active orders every time the market moves to a new candle:

T/P is placed 10 pips below the current price of "Line 3" trend line:

The following list of trades shows:

the updates created according to the changed T/P values: trades #2, 3, 7-21
the partial T/P: trades #4, 5 (partial closing in Metatrader 4 is done in two steps)
the new S/L for profit covering: trade #6
the final T/P: trade #22

#	Time	Type	Order	Size	Price	S / L	T / P	Profit	Balance
1	2009.09.10 12:00	buy	1	0.20	1.6626	1.6436	1.6681
2	2009.09.10 13:00	modify	1	0.20	1.6626	1.6436	1.6684
3	2009.09.10 14:00	modify	1	0.20	1.6626	1.6436	1.6686
4	2009.09.10 14:54	close	1	0.08	1.6667	1.6436	1.6686	32.80	10032.80
5	2009.09.10 14:54	buy	2	0.12	1.6626	1.6436	1.6686
6	2009.09.10 14:54	modify	2	0.12	1.6626	1.6622	1.6686
7	2009.09.10 15:00	modify	2	0.12	1.6626	1.6622	1.6689
8	2009.09.10 16:00	modify	2	0.12	1.6626	1.6622	1.6691
9	2009.09.10 17:00	modify	2	0.12	1.6626	1.6622	1.6694
10	2009.09.10 18:00	modify	2	0.12	1.6626	1.6622	1.6696
11	2009.09.10 19:00	modify	2	0.12	1.6626	1.6622	1.6699
12	2009.09.10 20:00	modify	2	0.12	1.6626	1.6622	1.6701
13	2009.09.10 21:01	modify	2	0.12	1.6626	1.6622	1.6704
14	2009.09.10 22:00	modify	2	0.12	1.6626	1.6622	1.6707
15	2009.09.10 23:00	modify	2	0.12	1.6626	1.6622	1.6709
16	2009.09.11 00:00	modify	2	0.12	1.6626	1.6622	1.6712
17	2009.09.11 01:00	modify	2	0.12	1.6626	1.6622	1.6714
18	2009.09.11 02:00	modify	2	0.12	1.6626	1.6622	1.6717
19	2009.09.11 03:00	modify	2	0.12	1.6626	1.6622	1.6719
20	2009.09.11 04:00	modify	2	0.12	1.6626	1.6622	1.6722
21	2009.09.11 05:00	modify	2	0.12	1.6626	1.6622	1.6725
22	2009.09.11 05:06	t/p	2	0.12	1.6725	1.6622	1.6725	118.92	10151.72

Cleanup

Finally Scripts/MagicStick-Cleanup can remove all of the commands from the description fields of the trend lines and the arrows and trend lines created by Magic Stick:

Other usage examples

To add a stop loss to your long orders, just draw a trend line, type e.g. buySL 15 in the description field and then just drag your trend line freely: Magic Stick will automatically adjust the S/L value of your orders (having the same currency as the current chart of course).