Advanced Options - Hedge Mode - Dynamic SL/TP

Hedge Mode & The Dynamic Engine

In this section, in its most summarized form, you select whether you want to enable hedge mode and whether the SL (Stop Loss) and TP (Take Profit) levels should be determined by artificial intelligence. If dynamic SL and TP is selected, the manual TP and SL levels will not apply.

You have learned the standard rules of engagement. Now, we unbox the tools for the master strategist. These are not settings to be trifled with; they are fundamental shifts in your tactical approach to the market.

Part 1: The Hedge Protocol – The Art of Duality By default, MEFAI operates on a linear path of succession. If hedge mode is not selected in MEFAI, the position is managed like this: a position that hits its target is closed, and a new trade is opened in the direction of the new signal. One battle ends before the next begins. It is clean, simple, and effective.

However, if hedge mode is selected, you are embracing a more complex, multi-dimensional strategy. The rules change. A signal in the opposite direction does not force a retreat. Instead, the position is not closed, and a hedge trade is opened. In other words, there will be both a short and a long trade active simultaneously. You are now holding both sides of the conflict, awaiting a final confirmation of the true trend.

The resolution is decisive. If the next signal is long, the existing short order is closed regardless of whether it has hit TP or not. The system abandons the losing side of the hedge and reinforces the side that aligns with the most recent market conviction. These things happen if hedge mode is on. It is a sophisticated protocol for navigating markets that lack a clear, singular direction.

Part 2: The Dynamic Engine – The Ghost in the Machine (MEF-AI SL/TP) We have taught you to draw your own lines in the sand. Now, we offer you the option to have them drawn by the hand of a master algorithm.

The Dynamic SL/TP engine is the pinnacle of our system's intelligence. When activated, it determines an SL and TP by looking at ATR, swing fib, swing zones, and liquidity points. This is not a simple, single-indicator calculation. It is a multi-layered analysis designed to outwit the market's predators.

Why is this complexity necessary? Because if it were only ATR, it would be very misleading, setting absurdly wide stops in volatile markets that destroy your risk-to-reward ratio. And if it were only liquidity points, you would be stopped out instantly. You would become the very fuel for the move you were trying to trade, as your stop would be clustered with the rest of the herd's.

Our engine understands this. Its prime directive is survival. It tries to add SL orders away from liquidity points and swing extensions, placing your defenses far from the obvious slaughterhouse zones. When you activate this protocol, you must understand a critical command: if this option is selected, the manually entered TP and SL levels will not work. You are handing over tactical control to the AI. In other words, in every trade, there isn't a fixed rate, but dynamically determined TP and percentages.

These are not mere settings. They are strategic declarations. Choose your protocol wisely.