Trading signals module using the system by Bill Williams

Nikolay Churbanov | 24 February, 2016

Introduction

The trading system by Bill Williams described in his book called "New trading dimensions" is certainly something that any trader is familiar with. This is one of the systems that contains clear and understandable rules for a majority of beginners. But the simplicity of rules is only apparent — the trading system comprises more than a dozen of trading patterns.

Many have attempted to create an Expert Advisor themselves based on this system, but pattern formalization, correct search and interpretation frequently prove difficult. In order to automate trading as well as identify and mark the system patterns, I have developed a module of trading signals for creating robots in MQL5 Wizard.

I aimed to create maximum convenience for those potential users of the MetaTrader 5 terminal, who may wish to study the trading system independently. The difference of the suggested trading module from other 60 published modules for MQL5 Wizard is that it contains configuration options with a visual interface.

So, these are the main features of the trading module:

1. Adjusting settings of the trading system with a graphic panel.
2. Ability to disable identification and marking of selected patterns.
3. Ability to disable trading with selected patterns.
4. Ability to optimize parameters of the trading system.

Structure (the source code is contained in the billwilliamsts.zip archive attached to this article):

1. MQL5 CBillWilliamsTS class. Contains all logic of identifying system's trading patterns and logic of trading with found patterns. Marking found patterns on the trading instrument chart can be executed using the class (optional). The class is contained in the BillWilliamsTS.mqh file.
2. MQL5 CBillWilliamsDialog graphic panel class. It is intended to display the settings panel for interactive management of the CBillWilliamsTS class object. The class is contained in the BillWilliamsPanel.mqh file.
3. MQL5 SignalBillWilliams class. The trading signal module used in MQL5 Wizard for automated creation of an Expert Advisor.
4. MQL5 BillWilliamsEA Expert Advisor. A trading expert developed on the basis of trading classes and the graphic panel. It is intended for automated trading with patterns of the trading system by Bill Williams and is contained in the BillWilliamsEA.mq5 file.

The materials are provided in the following order:

1. Brief description of the trading strategy by Bill Williams, trading patterns used, and marking performed by the developed Expert Advisor.
2. Description of the graphic panel.
3. Results of testing on various trading instruments.

1. Brief overview of the trading system by Bill Williams

After changing settings press "Accept" button to save them.

2.2. Analyzer settings

Alligator settings are the standard settings of this indicator. There is an additional option to disable the display of this indicator ('Show' parameter).

2.4. Settings for displaying and trading with signals of five dimensions

Trading settings have only one parameter – the Lot size.

2.6. Main window

Figure 17. Main window

3. Creating Expert Advisor in the MQL5 Wizard

3.1. Preparation

Before creating an Expert Advisor you must download the attached archive billwilliamsts.zip and copy its files to the relevant folders of the trading terminal's data catalog.

3.2. Creating Expert Advisor

The following steps must be performed for an automated Expert Advisor generation:

Select "New" in the MQL editor, and when a new window appears select "Expert Advisor (generate)":

Figure 18. Creating Expert Advisor — step 1

Enter a name of the Expert Advisor that you wish to create:

Figure 19. Creating Expert Advisor — step 2

The next step requires adding the signal generator used:

Figure 20. Creating Expert Advisor — step 3

Select "Signal of BillWilliams trading system" as a signal generator:

Figure 21. Creating Expert Advisor — step 4

The next step is confirmed without changes:

Figure 22. Creating Expert Advisor — step 5

Selection of a trading signal module is confirmed further:

Figure 23. Creating Expert Advisor — step 6

Trailing Stop parameters are set, if necessary:

Figure 24. Creating Expert Advisor — step 7

Then, money management parameters are set:

Figure 25. Creating Expert Advisor — step 8

The file of the created Expert Advisor must be edited, so that it could react to changes of parameters in the trading panel:

It is necessary to find this section of the code in the file:

//--- Creating filter CBillWilliamsSignal
CBillWilliamsSignal *filter0=new CBillWilliamsSignal;

And change it to:

filter0=new CBillWilliamsSignal;

Declare the filter0 global variable:

//+------------------------------------------------------------------+
//| Global expert object                                             |
//+------------------------------------------------------------------+
CExpert ExtExpert;
CBillWilliamsSignal *filter0;

And add the chart's event handler:

void OnChartEvent(const int id,
                  const long &lparam,
                  const double &dparam,
                  const string &sparam)
{
  filter0.ChartEvent(id,lparam,dparam,sparam);
}

The created Expert Advisor is now ready to be used.

3.3. Restrictions

The Expert Advisor that was created in Wizard has restrictions imposed by the Standard library API:

1. There is no ability to scale the position, if it is already open (improvement to the standard library is required);
2. The Expert Advisor trades only market orders.

To eliminate these disadvantages an additional Expert Advisor BillWilliamsEA.mq5, also placed in the attached file, was developed based on the class of trading signals.

4. Test results