dbasket-EA/[agent]docs/README.md

# D-Basket EA - Documentation Index

Welcome to the D-Basket EA documentation. This folder contains comprehensive documentation for the three-pair correlation hedging Expert Advisor.

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## 📚 Documentation Files

### 1. [QUICK_START.md](QUICK_START.md)
**Start here if you want to get the EA running quickly.**

- Installation instructions
- Essential parameter configuration
- Pre-flight checklist
- First backtest setup
- Troubleshooting common issues
- Best practices

**Best for**: New users, quick reference

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### 2. [TECHNICAL_DOCUMENTATION.md](TECHNICAL_DOCUMENTATION.md)
**Deep dive into the EA's architecture and implementation.**

- Architecture overview with diagrams
- Module specifications (v1.0 + v2.0)
- Data flow diagrams
- Signal processing pipeline
- Risk management system
- v2.0 optimization modules
- Implementation details
- Testing guidelines

**Best for**: Developers, advanced users, understanding internals

**Includes**:
- 🎨 Mermaid diagrams for architecture
- 📊 Flowcharts for signal processing
- 🔄 Sequence diagrams for basket execution
- 📈 State machine diagrams for circuit breaker
- 🆕 v2.0 statistical optimization diagrams

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### 3. [DEVELOPMENT_SUMMARY.md](DEVELOPMENT_SUMMARY.md)
**Complete project history and development process.**

- Project overview
- Development phases (planning → implementation → testing → v2.0 optimization)
- Architecture highlights
- Code statistics
- Testing recommendations
- Configuration examples
- Known limitations
- Next steps

**Best for**: Project managers, understanding what was built and why

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## 🗂️ Additional Documentation

### In Project Root (`MQL5/`)

#### [README.md](../MQL5/README.md)
- User-facing documentation
- Feature overview
- Installation guide
- Parameter reference
- Backtesting guide
- Risk warnings

### In Brain Folder

#### [implementation_plan.md](../../brain/490e5c3e-afaa-482f-8a7e-1c62e5a238e8/implementation_plan.md)
- v2.0 implementation plan
- Advanced optimization features
- Expected performance improvements

#### [walkthrough.md](../../brain/490e5c3e-afaa-482f-8a7e-1c62e5a238e8/walkthrough.md)
- v2.0 implementation walkthrough
- New modules summary
- Testing instructions

#### [task.md](../../brain/490e5c3e-afaa-482f-8a7e-1c62e5a238e8/task.md)
- Development task breakdown
- v2.0 optimization phases
- Progress tracking

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## 🎯 Quick Navigation

### I want to...

**...install and run the EA**  
→ Start with [QUICK_START.md](QUICK_START.md)

**...understand how the EA works**  
→ Read [TECHNICAL_DOCUMENTATION.md](TECHNICAL_DOCUMENTATION.md)

**...see what was built and why**  
→ Review [DEVELOPMENT_SUMMARY.md](DEVELOPMENT_SUMMARY.md)

**...configure parameters**  
→ See [QUICK_START.md](QUICK_START.md) → Essential Parameters  
→ Or [README.md](../MQL5/README.md) → Input Parameters

**...troubleshoot issues**  
→ Check [QUICK_START.md](QUICK_START.md) → Troubleshooting

**...optimize the EA**  
→ See [QUICK_START.md](QUICK_START.md) → Parameter Optimization  
→ Or [TECHNICAL_DOCUMENTATION.md](TECHNICAL_DOCUMENTATION.md) → Testing & Validation

**...understand the code structure**  
→ See [TECHNICAL_DOCUMENTATION.md](TECHNICAL_DOCUMENTATION.md) → Architecture Overview

**...see the development process**  
→ Read [DEVELOPMENT_SUMMARY.md](DEVELOPMENT_SUMMARY.md) → Development Process

**...learn about v2.0 optimizations**  
→ See [TECHNICAL_DOCUMENTATION.md](TECHNICAL_DOCUMENTATION.md) → v2.0 Optimization Modules

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## 📊 Visual Documentation

All diagrams are embedded in the markdown files using Mermaid syntax. They will render automatically in:
- GitHub
- GitLab
- VS Code (with Mermaid extension)
- Most modern markdown viewers

### Diagram Types Included

1. **Architecture Diagrams** - Module relationships and dependencies
2. **Flowcharts** - Signal processing and decision flows
3. **Sequence Diagrams** - Basket execution and trade flow
4. **State Machines** - Circuit breaker states
5. **Data Flow Diagrams** - OnTick event processing
6. **🆕 v2.0 Statistical Diagrams** - Cointegration, Half-Life, ATR flows

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## 🔍 Key Concepts

### Three-Pair Correlation Strategy

The EA exploits the mathematical relationship:
```
AUDNZD ≈ AUDCAD / NZDCAD
```

When this relationship diverges (measured by z-score), the EA enters a hedged basket expecting mean reversion.

### Basket Trading

A "basket" consists of 3 coordinated positions:
- **AUDNZD** - Reference leg
- **AUDCAD** - Hedge leg 1
- **NZDCAD** - Hedge leg 2

All 3 legs are opened/closed together as a single unit.

### 🆕 v2.0 Optimization Features

#### Cointegration Filter (ADF Test)
Only trades when spread is statistically proven to be mean-reverting (p < 0.05).

#### Half-Life Exit Timing
Calculates optimal holding time using Ornstein-Uhlenbeck process. Exits at 2× half-life or if spread diverges further.

#### ATR Position Sizing
Balances risk across all 3 legs using inverse volatility weighting. High-volatility pairs get smaller lots.

### Circuit Breaker

Automatic risk control system that halts trading when:
- Drawdown exceeds 15%
- Daily loss exceeds limit
- Margin level drops below 200%
- 6 consecutive losses occur

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## 📈 Project Statistics

| Metric | v1.0 | v2.0 |
|--------|------|------|
| Total Files | 12 | 15 |
| Lines of Code | ~2,880 | ~3,950 |
| Documentation Pages | 6 | 7 |
| Diagrams | 10+ | 15+ |
| Compilation Status | ✅ 0 errors | ✅ 0 errors |

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## ⚠️ Critical Information

### Hedging Account Required

> **This EA requires a hedging account. It will NOT work on netting accounts.**

The EA validates this in `OnInit()` and will fail initialization if the account is not in hedging mode.

### Broker Requirements

- ✅ Hedging account type
- ✅ All 3 symbols available (AUDCAD, NZDCAD, AUDNZD)
- ✅ Spreads < 3 pips per symbol
- ✅ Fast execution
- ✅ No hedging restrictions

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## 🚀 Getting Started Checklist

- [ ] Read [QUICK_START.md](QUICK_START.md)
- [ ] Install EA files to MT5
- [ ] Compile in MetaEditor (verify 0 errors)
- [ ] Configure broker symbol suffix (if needed)
- [ ] Choose EA version (v1.0 or v2.0)
- [ ] Run backtest on 1 year of data
- [ ] Review [TECHNICAL_DOCUMENTATION.md](TECHNICAL_DOCUMENTATION.md) for understanding
- [ ] Optimize parameters
- [ ] Deploy to demo account
- [ ] Monitor for 1+ month
- [ ] Review [DEVELOPMENT_SUMMARY.md](DEVELOPMENT_SUMMARY.md) for context

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## 📝 Version History

### v2.00 (2025-12-28)
- 🆕 **Cointegration Filter** - ADF test for spread stationarity
- 🆕 **Half-Life Exit Timing** - Ornstein-Uhlenbeck process
- 🆕 **ATR Position Sizing** - Risk-parity lot allocation
- ✅ 3 new optimization modules
- ✅ Enhanced documentation
- ✅ Expected win rate: 75-82% (up from ~60%)

### v1.00 (2025-12-28)
- ✅ Initial release
- ✅ Complete implementation
- ✅ Comprehensive documentation
- ✅ All diagrams and guides

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## 📞 Support

For technical questions or issues:
1. Check [QUICK_START.md](QUICK_START.md) → Troubleshooting
2. Review [TECHNICAL_DOCUMENTATION.md](TECHNICAL_DOCUMENTATION.md)
3. Enable DEBUG logging and check log files
4. Review [DEVELOPMENT_SUMMARY.md](DEVELOPMENT_SUMMARY.md) → Known Limitations

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## 📄 License

Copyright © 2025 D-Basket EA. All rights reserved.

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## 📄 License & Copyright

**Copyright © 2025 Dineth Pramodya**  
**Website**: [www.dineth.lk](https://www.dineth.lk)  
**All rights reserved.**

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*Last Updated: December 28, 2025*  
*Documentation Version: 2.00*  
*Developed by: Dineth Pramodya*