S&D Automation: Entry Conditions

The S&D Automation allows users to create, backtest, and automate strategies using features from the MTF Supply & Demand Zones toolkit. This article explains how each entry condition functions in the S&D Automation for building long and short strategies.

Steps Explained

Before you create a strategy, it's important to understand how to use steps. Within the S&D Automation you can create long and short entry conditions which are triggered when a certain set of criteria are met while following an order.

Consecutive Steps

If you’re creating a strategy with three steps, you can set your conditions in order as Step 1, Step 2, and Step 3.

If your strategy only requires two steps, but one step can be met by either of two conditions, assign both conditions to the same step. For example, if Step 1 can be satisfied by detecting either a new Demand Zone or a Demand Zone Retest, both conditions should be labeled as Step 1. In short, assigning multiple conditions to the same step means the step is satisfied if any of those conditions are met.

Entry Conditions

The S&D Automation can use the following conditions for entry conditions.

Any Zone

Detection: Triggered when either a Supply Zone or Demand Zone is detected.
Retest: Triggered when either a Supply Zone or Demand Zone is retested. A retest is confirmed when a candle enters a Supply or Demand Zone and closes outside of it.
2nd Retest: Triggered when either a Supply Zone or Demand Zone is retested for the second time.
3rd Retest: Triggered when either a Supply Zone or Demand Zone is retested for the third time.
Retracement: Triggered when price touches either a Supply Zone or Demand Zone.
Break: Triggered when either a Supply Zone or Demand Zone is invalidated or broken.

Supply Zone

Detection: Triggered when a Supply Zone is detected.
Retest: Triggered when a Supply Zone is retested. A retest is confirmed when a candle enters a Supply Zone and closes outside of it.
2nd Retest: Triggered when a Supply Zone is retested for the second time.
3rd Retest: Triggered when a Supply Zone is retested for the third time.
Retracement: Triggered when price touches a Supply Zone.
Break: Triggered when a Supply Zone is invalidated or broken.

Demand Zone

Detection: Triggered when a Demand Zone is detected.
Retest: Triggered when a Demand Zone is retested. A retest is confirmed when a candle enters a Demand Zone and closes outside of it.
2nd Retest: Triggered when a Demand Zone is retested for the second time.
3rd Retest: Triggered when a Demand Zone is retested for the third time.
Retracement: Triggered when price touches a Demand Zone.
Break: Triggered when a Demand Zone is invalidated or broken.

Timeframe Conditions

The S&D Automation supports Multi-Timeframe (MTF) features, just like the MTF Supply & Demand Zones Toolkit. When setting an entry condition, you can also choose the timeframe.

To set up MTF conditions, navigate to the 'Timeframes' section in the settings, select your desired timeframes, and enable them. You can choose up to three timeframes.

Once you've selected your timeframes, you can use them in your strategy. When setting long and short entry conditions, you can choose from Timeframe 1, Timeframe 2, or Timeframe 3.

Based on the image above, the timeframes correspond as follows:

Timeframe 1: Chart
Timeframe 2: 4 Hours
Timeframe 3: 1 Day

External Conditions

Users can use external indicators on the chart to set entry conditions.

The second dropdown in the external condition settings allows you to choose a conditional operator to compare external outputs. Available options include:

Less Than or Equal To: <=
Less Than: <
Equal To: =
Greater Than: >
Greater Than or Equal To: >=

Here is an example of the external condition being set for price closing above an Exponential Moving Average (EMA).

Session Conditions

The S&D Automation allows traders to choose when to execute trades and when to not execute trades.

Only Take Trades

This setting lets users specify the time period when their strategy can open or execute trades.

Don't Take Trades

This setting allows users to specify periods when their strategy can't open or execute trades.