OndaFX Expert Advisor Review - The Bollinger Bands Based EA With Best Settings

OndaFX Expert Advisor Review - The Bollinger Bands Based EA With Best Settings

30 October 2014, 11:35
Michael Sommer
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OndaFX Expert Advisor Review

 

OndaFX Expert Advisor

Price: $149.99
Currency pairs: EURUSD
Timeframe: H1

OndaFX Expert Advisor Review - The Bollinger Bands Based EA With Best Settings


The OndaFX Expert Advisor has been developed by Andrea Salvatore and his team using Bollinger Bands.

Bollinger Bands are probably one of the most famous and used indicator by every trader. It shows a sort of wave (“onda” in Italian) that helps you understand when a price can be considered “high” or “low”.

Despite the fact that this indicator is quite easy to read it’s not that easy to trade.

Andrea and his team just developed a simple but effective strategy that can be automated and that has proved to be consistently profitable on EURUSD.

That’s the OndaFX Expert Advisor.

As you probably know Bollinger Bands is a technical analysis tool invented by John Bollinger in the 1980s. This volatility indicator is available on the vast majority of trading platforms, including Metatrader MT4of course. 
Bollinger Bands are made up of three lines:
  • a moving average in the centre
  • an upper band that tries to define when prices can be considered “high”
  • a lower band that tries to define when prices can be considered “low”
In order to make a profit in the markets we always do our best to “sell high” and “buy low”, hence an indicator that pretends to measure the “highness” or “lowness” of the price surely grabs our attention.
 

However blindly selling when price breaks above the upper BB and buying when price breaks below the lower BB is NOT a strategy that can be profitable on any financial instrument and any timeframe.

As usual we must find our “sweet spot” where this strategy can work profitably. That means finding a financial instrument, timeframe, reasonable take profit and stop loss levels and some trading filters that in the end make up a complete and reliable trading strategy.

I’m going to describe some building blocks of the OndaFX Expert Advisor, so you can understand and trade this strategy.

First of all the best currency for trading this strategy currently is EURUSD, probably because it is the most traded pair with a high “mean reversion” personality. Secondly focus on H1 charts only and evaluate trading signals only when a bar closes. If a H1 bar closes outside the BB, then you can enter a trade in the opposite direction and aim at 20-40 pips.

As you can see in the review here we have 4 trades (1 short and 3 long): each of them is opened at the open of the candle “after” the signal and easily grabs 40 pips.

Now let’s see the rules when a trade goes in the opposite direction from what we expect. In this case we just try to close the transaction at breakeven or with a small loss. This is a very conservative approach that works best in the long run, because it avoids bad trading scenarios when price continues to go straight in one direction after the BB breakout.

Let’s see this picture as an example here:

We add another short trade only when a candle closes below the median line, and only if the distance from the entry price of the first trade is reasonably big (from 20 to 40 pips according to volatility). Then we close the transaction at breakeven. This example (that comes right after the 4 winning trades shown before) suggests that we could make a handsome profit also in this situation, however our tests show that the conservative approach (closing at breakeven when more than 1 trade must be opened) is fairly superior for the overall profitability of this strategy.

Of course the OndaFX Expert Advisor incorporates other rules and automatically adapts to market volatility (unless the user wants to specify fixed pip levels), but the strategy is basically built upon the two observations shown above.

It may seem weird that a trading system so simple and based on a widely known technical indicator can actually be profitable, however we also know that keeping things simple is often a good design principle for trading systems.

That’s why the KISS acronym (“Keep It Simple, Stupid!”) is being used for more than half a century now to remember that most systems work best if they are kept simple rather than made complex.

There are a few simple but critical aspects that account for the profitability of the strategy implemented by the OndaFX Expert Advisor:

  • apply the strategy to a currency pair with good tendency to reverse to the mean (EURUSD is a nice choice in this regard)
  • select a timeframe that can be reasonably exempt from too much market randomness (like H1)
  • fix a take profit adjusted to current market volatility (we use ATR – Average True Range – for that)
  • if the trade goes in the wrong direction open another trade only after confirmation of a reversal (the BB median line is used for this purpose)
  • try to reduce the risk as much as possible by closing bad trades at breakeven or even with a small loss
  • open more than 1 trade in the same direction only if the entry prices are reasonably far apart from each other (the ATR is used in this case too)

When following all these basic rules we have a good chance of success on our side. Actually over the last 24 months this strategy  - applied to EURUSD only – could have easily tripled a trading account.

We decided to record video showing a livebacktest of the OndaFX Expert Advisor on EURUSD. In this way you can easily understand the typical floating Profit&Loss involved by this strategy and the windfall pips potentially generated over the last 24 months. We are speaking an average 417 pips per month(or 10 thousands pips in a 2 years period).

And here is the OndaFX Expert Advisor in action!

As you can notice Equity line and Balance line grow smoothly during the entire backtesting period.

OndaFX Expert Advisor is a real trading tool. You can customize every aspect of the EA and discover yourself new pairs and timeframes to trade with.

For example Andrea and his team have found that AUDUSD is another very good performer with a 130% gain over 18 months of trading. As a bonus they’ll provide you with the settings for AUDUSD as well!

OndaFX Expert Advisor can easily become your private “lab” for understanding how to make the most from Bollinger Bands on different pairs and timeframes. You can change BB settings that are not available with the standard Bollinger Bands indicator of MT4, and you can choose from several “BB breakout rules” that are coded into the EA. You’ll also have complete control over the money management settings, so that the OndaFX Expert Advisorcan safely run on accounts of any size, starting from 1K USD.

OndaFX Expert Advisor uses a proprietary Bollinger Bands indicator that we have called HyperBB: the number of “standard deviations” can be expressed as a fractional number (instead of an integer), and the median line can be any Moving Average of your choice (instead of only SMA). HyperBB is provided as a bonus along with OndaFX, so that you can easily follow on chart the trades executed by the EA, in case you want to experiment with some non-standard input parameters of Bollinger Bands.

OndaFX Expert Advisor - Suggested Broker


Although the strategy can work pretty well on any reputable broker, we personally use and suggest FxPro.com which offers top-rated liquidity providers and very competitive spreads.

OndaFX Expert Advisor - What You Get

  • OndaFX EA
  • Setting Files for each pair and timeframe we backtested successfully
  • An online manual with instructions
  • Bonus: HyperBB indicator (fully customizable Bollinger Bands)
  • Email Support

The OndaFX Expert Advisor is available for a one-time fee of only 149.99 USD. There are no recurring fees or any hidden fees. Immediately after your order is processed, you will get access to the download links with the installation file and the detailed user guide. The trading rules are easy to understand and easy to follow. The interface takes minutes to understand, and you could be trading like a professional currency trader within a day.

Part-Time or Full-Time Trader … Beginner or Advanced … Anyone can start profiting TODAY!

Visit the Official OndaFX Expert Advisor site



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