User Guide: Scout The Smart Hunter
Scout The Smart Hunter is an expert advisor designed to help you trade with more confidence and simplicity. Its configuration is divided into two main sections: Entry Strategy (how trades are opened) and Exit Strategy (how they are closed). Below, we explain how to use each parameter in a simple way.
Entry Strategy
In this section, you define how Scout identifies opportunities to open trades.
Moving Average Crossover
This menu defines the type of signals that Scout will look for. You can choose from three options:
- Momentum Cross: Detects trend changes with a balance between quick response and stability.
- Fast Reaction: Captures early market movements with greater sensitivity to price variations.
- Trend Filter: Smooths out noise and helps identify the prevailing direction in the short and medium term.
Scout will not open a trade unless the moving average crossover is confirmed by an internal function that automatically evaluates whether the moving averages are converging or diverging to anticipate the strength of the movement. If this function approves the crossover, an additional RSI-based filter will discard weak signals. RSI levels adjust automatically according to market behavior.
Volume
Here you decide how much you want to trade in each transaction. This value is expressed in lots.
Stop Loss Type
The stop loss is like a parachute: it limits your losses if the market does not move in your favor. You can set it in two ways:
- Candlestick Retrospective: Based on the highest or lowest values of recent candlesticks. It is complemented by the Candlestick Lookback field.
- Fixed Distance: A fixed distance in points from the entry price. It is complemented by the Fixed Distance (pts) field.
Candlestick Lookback
If you chose Candlestick Retrospective, enter in this field the number of past candles where Scout will look for the minimum/maximum to set the stop loss level.
Fixed Distance (pts)
If your option was Fixed Distance, enter here the number of points between the stop loss and the entry price.
Points are the smallest unit of variation in an asset’s value. Do not confuse them with pips.
Exit Strategy
This section controls how and when Scout closes trades to protect your profits or minimize losses.
Trailing Stop
A trailing stop automatically adjusts the stop loss level when the price moves in your favor. If enabled (Yes), fill in the field Trailing Stop Activation (pts) with the number of points the price must move in your favor before the trailing stop starts adjusting.
Trailing Stop Color allows you to adjust the trailing stop color for optimal visibility against your background.
Take Profit Type
Defines how Scout sets the final target level, the take profit. You can choose between two options:
- Based on Stop Loss: Calculates the target as a multiple of the stop loss. It is complemented by the Coefficient Over Stop Loss field.
- Fixed Distance: Sets an exact value in points from the entry price. It is complemented by the Fixed Distance (pts) field.
Coefficient Over Stop Loss
The number in this field is multiplied by the stop loss range to establish the take profit distance. For example, if you enter 2, the take profit distance will be twice the stop loss range; if you enter 0.5, the take profit distance will be half of the stop loss range.
Fixed Distance (pts)
Similar to the field of the same name in the Entry Strategy section, this corresponds to the number of points to the take profit from the entry price.
Partial Profits
Allows you to close portions of your position before reaching the final target:
- No Partial Profits: No partial profit-taking.
- Early Scaling: Splits the position into equal parts and closes them progressively, at equal intervals, until reaching the take profit.
Download the demo version for free to visually understand how Partial Profit protects your positions.
Scout is designed to be simple and flexible, helping you explore settings, assets, and timeframes more quickly. Experiment with the settings to find what best suits your strategy.
Possible Configurations and How They Were Obtained
You can download on this very blog the file Scout1.0_2019-2024_H1.zip which contains the following files with parameter configurations:
- scout_1.0_eurusd_h1_set1.set
- scout_1.0_eurusd_h1_set2.set
- scout_1.0_eurusd_h1_set3.set
- scout_1.0_eurusd_h1_set4.set
These parameter combinations were achieved using one-hour candle data from Darwinex for EURUSD from the years 2019, 2022, and the first half of 2023. The second half of 2023 and the year 2024 were reserved for forward testing. The configurations have also been tested with good backtesting results on other currency pairs. Load these files into the strategy tester to conduct your own tests and evaluate their performance under different market conditions.
The results obtained from using the software referenced in this guide are not guaranteed. Trading in financial markets involves significant risk and may not be suitable for all investors. The developer of this module is not responsible for any losses or damages resulting from its use. The developer does not guarantee ongoing support or updates. Use the software at your own risk.