PARABELLUM v2.0 EA MT4

Parabellum’s strategy

From market analysis, 80% of the time, the market is sideways and only 20% of the time is trending.

Parabellum is specialized in generating profitable positions on the sideways market, i.e. most of the time.

The Parabellum EA is based on an algorithm that analyzes the market on the open chart and “hunts” for the market entry signal when the statistical mathematical analysis is in its favor.

The signal is filtered by three different indicators. When the position does not close in profit, Parabellum waits for a new entry signal in which to enter, using a higher Size to close the PROFIT TRADE, as soon as a certain level of PRICE CALCULATED MATHEMATICALLY
BY THE EA IS REACHED BECAUSE IT IS AN ALMOST “SCIENTIFIC” METHOD

“Mean reversion” is a trading strategy used in the stock market and also applicable on other financial markets.

This strategy takes advantage of temporary price inefficiencies in the market. The maximum and minimum price of a security are temporary, and it will tend to have an average price over time to which it will constantly converge, as if the average were a magnet that attracts the price.

This has led to the development of various methods to enter assets that have deviated dramatically from their historical averages.

TAKE ADVANTAGE OF TEMPORARY PRICE DEVIATIONS and INEFFICIENCIES Mean reversion is applied by first identifying the asset’s trading range and then calculating the average price using analytical techniques.

When the price of the asset in the current market is below that average price, the stock is considered attractive to buy, as the price is expected to rise.

In the short term, there are short-term gaps between buyers and sellers, related to liquidity or an overshooting effect.

This causes a stock to be “overbought”
or “oversold”: this increases the likelihood that, once the overbuying or selling occurs, the price will have a physiological reversal.