Important Note
There have to be default settings, so the values chosen are such that Kraitos will be trading a moderate to conservative strategy. The lot size is moderate, but the rest of the settings are set for risk management. You should speak with the person who invited you to Auvoria Prime about the settings to use for your Kraitos trading. Make sure you join our Kraitos group on Telegram to stay up to date with all the news and updates. Understanding Kraitos’ settings is recommended to improve your trading experience with the software.
Introduction to Kraitos
Kraitos was designed to take your forex trading to the next level. In this article, we will give you an in-depth look at the features and capabilities of Kraitos and show you how to maximize your profits while maintaining proper risk management in the foreign exchange market.
Kraitos is a software built specifically for the forex market, focusing on predicting market reversals and swing trading. It is compatible with any broker that supports the MT5 platform and can be customized to suit your risk appetite.
The software's algorithms have been rigorously tested on various forex pairs and proven effective even in the most challenging market conditions. Kraitos uses a combination of technical indicators and chart patterns to identify entry points and adaptive scaling techniques to manage trades. The ultimate goal of the software is to achieve consistent growth while maintaining a responsible approach to risk management.
Kraitos Settings (v4.3)
Take your time to understand the settings and what they do. If you doubt a setting, consider leaving the default value. To understand the settings better, you can reach out to your team members in Auvoria Prime, or reach out to the AP Support Team.
*** Trading ***
Position Size
Default - 0.01 / $1500
The position size determines the amount of capital you want to risk per trade. Below is the default setting and your other options and how they can affect your trading. The larger the dollar amount, the more conservative the lot size. The position size adjusts based on equity, it is not static and based on total balance.
0.01 / $1000 - This is a higher risk setting than default and can lead to higher drawdown limits if the market trends.
0.01 / $1250 - This value is considered a balance between drawdown and profitability.
0.01 / $1500 - This value suits accounts of all sizes, but for larger account balances, the same profit can be made with a lower lot size based on the balance.
0.01 / $2000 - $10000 - These values are for more significant account balances or to be very conservative with an account of any size. If a person has a large account and wants to take a conservative approach, they can decrease the lot size. Someone with a large account balance may be pleased with a 2% monthly profit and know their drawdown will be smaller with the decreased lot size.
Maximum Instruments to Trade
Default - 2
This feature allows the trader to restrict the number of currency pairs the algorithm can trade at any given time. This risk management tool helps control the account's exposure and prevents overtrading. The trader can adjust this limit based on their trading strategy and risk management plan.
While the default is four and is recommended for risk management, in version 3, a special feature was implemented that allows Kraitos to open more pairs if a trade already has secured profit with a trailing stop-loss.
This means that when Kraitos has secured profit on a trade using a Trailing Stoploss, Kraitos will ignore the Correlation Filter and the Max Allowed Pairs and take another trade. As long as profits are secured, Kraitos will keep opening new trades.
If a person wants to allow more than four instruments to be traded, they can turn the Correlation Filter on, preventing correlating pairs from being traded simultaneously. This will help prevent drawdown and protect the account.
Note: Correlating pairs are pairs that contain one of the same currencies. For example, EURUSD correlates with USDCAD because USD is in both. Two pairs that do not correlate are EURUSD and AUDCAD. The reason for not allowing correlating pairs to be traded at the same time is there could be a correlation in their direction on the charts. This would increase drawdown more quickly.
Instruments
Default - GBPUSD, EURUSD, AUDUSD, AUDCAD, NZDUSD, USDCAD
The software was designed to evaluate the performance of different currency pairs. The pairs that revealed the best results in terms of profitability and safety were AUDCAD, AUDUSD, GBPUSD, EURUSD, NZDCAD, and NZDUSD.
It is important to note that while these pairs may have optimal results, the software can still perform well on other pairs. However, it's crucial to consider that the number of pairs traded simultaneously can affect the risk level. It is important to remember that these pairs were tested separately, and the results may vary if multiple pairs are traded simultaneously.
Note: If the user does not want to use the Smart Money Concept (SMC), it is advised to remove USDCAD and GBPCAD from the instruments to trade.
Additional Instruments
Default - (blank)
This section is for you to add any other currencies you may want to trade. You will need to get the pairs from your broker so they are entered correctly.
Years of forward testing and decades of backtesting strongly suggest staying away from the JPY and CHF pairs.
Kraitos is not intended to be used with metals, commodities, stocks, cryptocurrency, or indices. If a person wants to “test” any of these, it is important to do so on a demo account.
Spread Filter (Pips)
Default - 3
This Spread Filter determines the spread that you want to allow for Kraitos to open new trades. If the spread of a currency pair is more significant than the value entered here, the trade will not be allowed to execute.
Note: The spread is the difference between the actual value of the currency pair versus the entry price you will be given. This spread is the fee to the parties that make trading possible. The spread can increase drastically during very volatile markets, costing you more money.
***Trading Style***
Kraitos Uses an Elastic Scaling Strategy
Kraitos uses a complex reversal finder to determine when a reversal (a change in the direction of a currency pair) is confirmed. This reversal confirmation could lead to a scaling trade if the price exceeds the Minimum Required Distance Between Trades in Pips.
Once a reversal is confirmed and outside the Minimum Required Distance Between Trades in Pips, Kraitos will compute the lot size for the scaling trade based on the Decision Units in Pips and the Position Size.
The formula used to calculate the lot size of the scaling trade is:
Initial lot size x 1.3 ^ Decision Units in Pips
The size of the ‘Units’ is determined by the "Decision Unit in Pips" setting. Let's say it's set to 50 pips in the settings, and these zones are all 50 pips (each).
What that means is, if your initial lot size for the first trade is 0.01 because the reversal happened in the 9 Unit, the lot size of the scaling trade that happened in the 9th zone is calculated by this formula
9 Units - 1 = 8
The initial lot is 0.01
0.01 x 1.3 (fixed multiplier) 8 times
0.01 x 1.3 x 1.3 x 1.3 x 1.3 x 1.3 x 1.3 x 1.3 x 1.3 = 0.08157 (rounded down to 0.08 lot)
The reversal happened in zone 9, so the lot size of the scaling trade is = 0.08.
It is important to note that this is just an example, and the actual calculation may vary based on the actual settings used in the software. As you can see, the lot size is directly related to the distance the market moves in the wrong direction before a confirmed reversal happens. If the market moves significantly in the wrong direction and a confirmed reversal happens, with a small zone range, the lot size can become large. If you find yourself in this situation, you may want to consider increasing the Decision Unit in Pips or setting a more reasonable max allowed lot size per trade.
How Scaling Lot Size Is Calculated
Minimum Required Distance Between Trades in Pips
Default - 60
This option sets the minimum number of pips that the trade must move, in pips, between the last executed trade and the managing trade for the managing trade to execute. The following image shows that the distance between trades is over 500 points, which is over 50 pips.
The purpose of this setting is to prevent excessive managing trades from being opened in case of a sideways market movement.
If the value is smaller than the default, an excessive number of trades could occur, resulting in the account going into drawdown faster.
If this value is too high, the managing trade may not be placed in a better position, which will help close out a losing trade and maintain some profit.
Decision Units in Pips
Default - 30
The value entered here determines the distance between hypothetical units in pips. These units calculate the lot size of managing trades in the trading software. The default value is chosen due to years of testing and has shown to be the best value.
This setting allows the user to specify the pip distance between units, which is then used to calculate the appropriate lot size for each trade based on the current market conditions and the user's specified risk appetite.
For example, if this is set to 50 pips, the software will divide the market into units that are 50 pips apart. When a trade is executed, the lot size will be calculated based on the market's current unit and the user's specified risk management settings. This allows the software to adapt to changing market conditions and adjust the lot size accordingly.
Note: The lower the number, the more aggressive every scaling trade will be.
Correlation Filter
Default - Cross_Directional_Allowed
There are three options for the correlation filter, and they are explained below.
Off - With this value, there is no filtering of correlating pairs.
Forbid Correlating Pairs—With this option selected, Kraitos will not allow correlating pairs to be traded at the same time unless a trade has profit locked in. This will allow Kraitos to bypass the correlation filter and open a new trade.
Cross Directional Allowed - This value allows Kraitos to trade the pairs with the same currency, but they must be in opposite directions on the charts. For example, you are in a EURUSD Buy trade, and the market reverses so that you are in a drawdown. With the Cross Directional Trading allowed, if Kraitos gets a signal for a sell trade with AUDUSD, it will allow it.
So, although USD is in both pairs, because of the opposite direction of the second trade, it is allowed. This opens up the opportunity for more trades.
*** Smart Money Concepts ***
Smart Money Confluence
Default - False
For Kraitos to open an initial trade, the smart entry confirmations must align with smart money bias on the Daily timeframe.
If Kraitos gets a smart entry confirmation for a sell, but the smart money bias is to buy, it will not open a trade.
For this setting to work, you must set Smart Money Only to - False.
Smart Money Only
Default - False
Kraitos will immediately open an initial trade in the direction of the smart money bias. It will not wait for the smart entry confirmations.
For this setting to work, you must set Smart Money Confluence to - False.
Quantum Zone Strategy
Default - True
The Quantum Zone Strategy adds more accuracy to trade entries. If this setting is set to True, Kraitos will look at the historical data for a currency over the past 31 days. Kraitos will identify the high and low zone of the price range and prevent a trade from being taken when a Sell signal comes, and the currency pair is in the bottom zone or a Buy signal comes when the currency pair is at the top of the zone.
Initial Trade Take Profit Settings
The initial trade with Kraitos was the first trade taken on a currency pair. If the pair goes into drawdown, Kraitos will open a managing trade. These settings control only the initial trade.
Initial Trade’s Take Profit (Pips)
Default - 30.0
This value only applies when only one trade exists on a pair. The value is the number of pips you want to catch on a trade, and then Kraitos will close the trade. The higher this number, the more potential profit, but you may also be in a trade longer waiting for the Take Profit to be reached, in which time the currency pair could reverse, and the profit or account balance is lost.
Trailing Stop on Initial Trade
Default - True
This is a powerful setting for those who understand how it works. A trailing stop loss will allow you to catch bigger moves and profit on the initial trade.
Here is an example of how the trailing stop loss works. Let's say the Trail Initial Trade by X Pips is set to 5 pips. This means that when Kraitos enters a buy on EURUSD and reaches the value of the Initial Trade’s Take Profit, 10 by default, a trailing stop loss will be placed at 5 pips. As the trade moves more into profit, the trailing stop loss moves with it, securing more pips. If, however, the trade reverses, you could get stopped out at a 5-pip profit.
Note: The value you set in the next setting is the minimal profit you could secure on a trade if the trailing stop loss is activated.
Trail Initial Trade by X Pips
Default: 10.0
If the last setting, the Trailing Stop on Initial Trade, is set to True, then the Initial Trade’s Take Profit (Pips) becomes the point where the Trailing Stop Loss will be activated.
EXAMPLE
Initial Trade’s Take Profit (Pips) - 30
Trailing Stop on Initial Trade - True
Trail Initial Trade by X Pips - 10
In this example, the Trailing Stop Loss will be activated when the initial trade is 30 pips in profit. Kraitos will place a trailing stop loss of 10 pips.
This means that for every pip that the trade moves in profit, Kraitos will secure more profit. If the trade moves 35 pips into profit, the trailing stop loss will secure 25 pips.
***Managing Trade Take Profit Settings***
Take Profit on Managing Trades (Pips)
Default - 30.0
When this setting is activated, if the user has more than one open trade on the same forex pair, these trades will close automatically when the overall equity on that pair reaches a level that is the breakeven point plus an additional five (5) pips, the value set by the user. This functionality is implemented to safeguard profits and manage the risk of having multiple trades open on the same currency pair.
Trailing SL on Managing Trades
Default - True
This is a powerful setting for those who understand how it works. A trailing stop loss will allow you to catch bigger moves and profit on the managing trade.
Here is an example of how the trailing stop loss works. Let's say the Trail Manging Trades by X Pips is set to 5 pips. This means that when Kraitos enters a managing trade and reaches the value of the Take Profit on a Managing Trade, 5 by default, a trailing stop loss will be placed at 5 pips. As the trade moves more into profit, the trailing stop loss moves with it, securing more pips. If, however, the trade reverses, you could get stopped out at a 5-pip profit.
Note: The value you set in the next setting is the minimal profit you could secure on a trade if the trailing stop loss is activated.
Trail Managing Trades By X Pips
Default - 10.0
If the last setting, the Trailing SL on Managing Trades, is set to True, then the Trail Managing Trades By X Pips becomes the point where the Trailing Stop Loss will be activated.
EXAMPLE
Managing Trade’s Take Profit (Pips) - 30
Trailing Stop on Managing Trade - True
Trail Managing Trade by X Pips - 25
In this example, the Trailing Stop Loss will be activated when the managing trade is 30 pips in profit. Kraitos will place a trailing stop loss of 25 pips.
This means that for every pip that the trade moves in profit, Kraitos will secure more profit. If the trade moves 35 pips into profit, the trailing stop loss will secure 30 pips.
***Pivot Levels***
Take Profit at Pivot Levels
Default - false
True - When this feature is enabled, Kraitos will wait for the market to lose momentum before closing them, potentially resulting in more significant profits if the pair keeps trending in the winning direction.
False - If this feature is disabled, Kraitos will close positions using the “First Trade’s Take Profit Pips.” This can potentially result in smaller profits but also can help to protect the current profits in case of a market reversal.
***Trade Supervision***
Add to Positions if Positive
Default - false
True - If this feature is set to true and the market continues to move in the favorable direction, Kraitos will add new positions after every X pips (as specified by the user). This allows for additional profits as the market keeps moving in the desired direction. Additionally, after the second position is added, the profits are secured with a trailing stop, which adjusts the stop loss level as the market moves in favor of the trade.
False - If the feature is set to false, Kraitos will not add new positions. It will take profit after X pips and will not open new positions. This approach could result in a smaller profit, but it can also help protect the current profits in case of market reversal.
Add to Position After X Pips
Default - 45
This value determines the number of pips the market must move in the profitable direction before Kraitos can add another trade. This feature is only available when "Add to Positions if Positive” is enabled.
Trail Added Positions by X Pips
Default - 25
This value controls the distance between the current market price and the stop loss for added trades, which is only effective when "Add to Positions if Positive" is enabled. The number of pips that the stop loss level should be placed away from the latest added trade.
***Risk Management***
Relaxing After X Many Trades
Default - 5
Set up the maximum number of trades open per pair. Reducing this number to 2 or 3 will prevent a larger drawdown during a currency pair trend, but Kraitos does use the managing trades to get out of the drawdown without the price returning to the initial trade entry.
Equity Protector (in %)
Default - 25
This value is a percentage the user can specify the maximum drawdown he is willing to enter before having Kraitos close all the open trades. If reached, Kraitos will stop and close all existing positions.
While the default is set to 25%, you are expected to edit this to your risk allowance. Only you can decide this amount. If you have a $1,000 account and you set this to 50%, you risk $500; if that amount is reached, Kraitos will automatically close out your trades and turn the software off.
Max Allowed Lot Size
Default - 0.1 (This should be adjusted based on the account balance)
The value in this setting will prevent Kraitos from opening trades with larger lot sizes than the value specified here. However, Having the right lot size for your balance is important because Kraitos needs to open managing trades with a large enough lot size to work with an initial trade-in drawdown. Here is a formula to use to determine your Max Allowed Lot Size.
Formula
Balance/15,000 = Max Lot Size
$1000/15,000 = .066
Note: If you want a more conservative lot size, you can use Balance/20,000, or a more aggressive lot size would use the formula Balance/10,000.
Keep Trading After EP is Reached
Default - True
With this value set to True, if your account goes into drawdown to the extent that it reaches your Equity Protector percentage and closes out all your open trades, Kraitos will immediately start looking for new trades.
MT5 Notification for a Certain DD
Default - 4.0
If you set this value to 0.0, no notifications will be sent to you from MT5. If you have a value set, a notification will appear on MT5 that you have reached that drawdown level in percentage. Having one more notification to let you know what is happening in your trades is good.
Chill Out when a % of DD is Reached on the Balance
Default - 10
The value that you enter here means that when that percentage of drawdown is reached on your account, Kraitos will not open any new initial trades or managing trades until the drawdown drops below the value entered.
Kraitos Support Options
You have several support options available to you that are yours to use.
- Help Desk - The Auvoria Prime Help Desk has Live Chat support, ticket support, and a large knowledge base of articles to learn from.
- Send an Email to Support - support@auvoriaprime.com - Send an email, which will be converted into a ticket and replied to ASAP by a customer support representative.
- Telegram Channel - Join this channel to receive announcements regarding Kraitos. https://t.me/kraitosfx