Aurum Ratchet

Precision Tick-Level Trailing and Momentum Execution

Most algorithms fail because they either drown in lower-timeframe noise or give back massive unrealised profit due to wide, unresponsive trailing stops. Aurum Ratchet H1 solves this by combining strict hourly structural execution with a high-frequency, micro-ratchet trailing mechanism. It is engineered to capture the definitive hourly momentum shift and lock in profits at the exact apex of the move.

This algorithm does not guess. It waits for the hourly candle to close, confirms the momentum confluence, and manages the exit with tick-level precision.

The Core Execution Architecture

Unlike scalpers that trigger on every minor price fluctuation, Aurum Ratchet H1 operates exclusively on the 1-hour chart.

Bar Open Execution: Entries are evaluated and executed only at the exact opening of a new H1 bar (precisely at:00:00). This eliminates intra-bar repainting, avoids false signals caused by temporary liquidity sweeps, and ensures every entry is based on a fully confirmed hourly structural close.
Cross-Midnight Session Window: The algorithm operates within a configurable session window that natively supports cross-midnight execution (e.g., 15:00 to 11:00 server time). It captures the most liquid global trading hours while automatically avoiding dead zones, calculating time deltas flawlessly through the server midnight rollover.
H1 Momentum Confluence: Before executing, the bot requires the hourly close to align with a 100-period Exponential Moving Average and checks for specific momentum zones using a 14-period RSI. This ensures the algorithm only engages when the macro hourly trend and short-term momentum are in absolute agreement.

The Micro-Ratchet Trailing Mechanism

The defining edge of this algorithm is its post-entry trade management. It does not use standard, wide ATR trailing stops that give back excessive profits. Instead, it employs a high-frequency, tick-level ratchet system designed to extract every possible point from an intrabar trend.

Activation: The trailing mechanism activates precisely when the position reaches 160 pips (a 16.00 price distance) in unrealised profit.
Initial Lock: Upon activation, the stop-loss is immediately locked at the entry price plus or minus 160 pips, providing a massive structural buffer and creating a risk-free trade.
Tick-Level Ratchet: From that point, the stop loss trails the current price with extreme precision, ratcheting forward by exactly 5 points (a 0.05 price distance) per tick.
Snap Exit: The algorithm continuously monitors the distance between the peak price and the stop loss. The moment the price pulls back by 5 points from its absolute peak, the position is instantly closed. This captures the exact apex of intrabar momentum and prevents the trade from reversing into a loser.

Institutional Risk and Capital Preservation

Capital preservation is hardcoded into the algorithm's execution sequence.

Defined Risk Parameters: The initial stop loss is set at 400 pips (a 40.00 price distance), and the take profit is at 250 pips (a 25.00 price distance). This wide initial stop allows the trade to survive Gold's notorious initial volatility spikes and liquidity hunts, while the tight ratchet trailing stop takes over to protect capital once the trend is established.
Advanced Lot Sizing Engine: Features a highly configurable lot sizing model. It supports fixed lots, percentage risk, and a unique balance-step scaling model. The final calculated lot size is mathematically floored to the broker's exact volume step, ensuring 100% compliance with broker margin requirements and preventing order rejections.
Maximum Exposure Limits: Strictly limits concurrent open positions to a maximum of two. This allows for controlled dual-directional exposure if the market conditions warrant it, while strictly preventing the account from being over-leveraged.
Weekend Gap Protection: A mandatory Friday close protocol automatically liquidates all open positions at 22:30 server time. An optional Wednesday close is also included for extreme risk aversion. No positions are held over the weekend, entirely eliminating gap risk.

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Disclaimer

Trading foreign exchange and commodities (especially Gold/XAUUSD) on margin carries a high level of risk and may not be suitable for all investors. Past performance of the EA or backtested results does not guarantee future results. The high degree of leverage can work against you as well as for you. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your initial investment.

Q: Why does the bot only enter trades at the exact open of a new H1 bar? A: Entering only at the :00:00 mark of a new hourly candle ensures that the algorithm is reacting to a fully confirmed hourly close. This eliminates intra-bar repainting, avoids false signals caused by temporary liquidity sweeps, and aligns the entry with the definitive hourly momentum shift.

Q: How does the "Micro-Ratchet" trailing stop actually work? A: Once the trade reaches 160 pips in profit, the stop loss is locked at entry +/- 160 pips. After that, the bot monitors every single tick. It ratchets the stop loss forward by exactly 5 points (0.05 price distance) as the price moves in its favor. The moment the price pulls back by 5 points from its absolute peak, the trade is closed. This locks in profits at the micro-level rather than giving back large chunks of unrealized gains.

Q: What is the initial risk profile of a trade? A: The initial Stop Loss is set at 400 pips (a 40.00 price distance) and the Take Profit is at 250 pips (a 25.00 price distance). This wide initial stop allows the trade to survive Gold's notorious initial volatility spikes and liquidity hunts, while the tight ratchet trailing stop takes over to protect capital once the trend is established.

Q: Can the bot hold multiple positions at the same time? A: Yes, but strictly limited. The maximum number of concurrent open positions is capped at two. This allows for controlled dual-directional exposure if the market conditions warrant it, while strictly preventing the account from being over-leveraged.

Q: How does the lot sizing model handle broker volume steps? A: The algorithm features a precise volume normalization engine. Whether you use fixed lots, percentage risk, or the balance-step scaling model, the final calculated lot size is mathematically floored to the broker's exact volume step (e.g., 0.01). This guarantees that every order is accepted by the broker without rejection due to invalid volume increments.

Q: Does the bot hold trades over the weekend? A: Absolutely not. The bot includes a mandatory Friday Close protocol. By default, it will automatically liquidate all open positions at 22:30 server time on Friday. This completely eliminates the risk of catastrophic weekend market gaps. An optional Wednesday close is also available for stricter risk management.

Q: How does the session window handle cross-midnight trading? A: The session logic natively supports cross-midnight windows (for example, starting at 15:00 and ending at 11:00 the next day). The algorithm calculates the time delta correctly, ensuring continuous execution through the midnight server rollover without calculation errors or missed sessions.

Q: What signal logic does the bot use to determine entry direction? A: The algorithm utilizes an H1 momentum and trend confluence model. It requires the hourly close to align with a 100-period Exponential Moving Average and checks for specific momentum zones using a 14-period RSI. This ensures the bot only enters when the macro hourly trend and short-term momentum are in agreement.