Job finished
Specification
PROJECT EXPERT ADVISOR 1
INDICATORS;
1 EXPONENTIAL MOVING AVERAGES ; 210,21,10.
2. STOCHASTIC INDICATOR; RSI WITH PERIOD 14 with these levels drawn ; 80,70,50,30 and 20.
3. STOCHASTIC MOMENTUM INDEX.WITH PERIOD TO BE SET TO.
Look back.999999, Period _Q at 6, period_R at 15, period_S at 18 and Signal at 40.
On the chart you will see period_15 as white line and Period _40 as Red line. these levels must be drawn. +40, +20 , 0, -20, and -40.On the indicator.
BUY CONDITIONS.
1. When Prices had Crossed and closed up of 21 and 10 EMA.
2. RSI must have been in OVERSOLD CONDITIONS. Which is at30 and 20 levels ,it should latter cross the 50 level for a confirmed signal.(see picture BUY conditions.)
3. Stochastic Momentum Index otherwise called SMI must have been in OVERSOLD condition .Which must be at -20 and -40 line.
4. IT must later cross signal line 40 RED ,by Period_R which is WHITE up to confirm a good buy signal. (SEE BUY CONDITION PICTURE).
VISE VESER for SELL CONDITIONS. Please see picture SELL CONDITIONS.
EXIT RULES. FOUR HOUR TIME FRAME. (H4)
Having fulfil the said conditions for ether a BUY or a SELL, 3 TRADES should be activated (these can be perfected to 2 trades during Testing to see if it would perform well)
1. Take profit 1 at 20 pips
2. Take profit 2 at 30 pips.
3. (A). When price cross the 21 and 10 EMA’S back up or down.
(B). When price had crossed the RSI 50 Level. Down or up.
(c). When Period _R had crossed the signal line 40.
*At oversold or over bought of stochastic of RSI
*At oversold or overbought of SMI.
*Please note this should tested because sometimes the stochastic might be at oversold and yet the price keep going down.
ONE HOUR TIME FRAME .
2 trades should be programmed for this with 1st trade take profit 10 and second take profit at when the exit rules are meet.
TRADE MANAGEMENT.
1. After the first and second profit has been taken the 3rd trade should be managed with TRAILING STOP and BREAK EVEN, until the exit conditions are meet. i.e price crossing back down or up the 21 and 10 EMA ,Crossing down or up of 50 level and crossing down or up of SMI line.
RE-ENTRY AND ADDING TO POSITION CONDITIONS
Having concluded the first trade the EA re enter another trade when price and the 21 and 10 MA have crossed over the 210 EMA i.e if is a BUY with higher lot size because the market is now on the very strong buy area. (Note viability and success of this can be done during the testing stage to see how workable it is.
SEE PICTURE RE-ENTRY CONDITION AND PICTURE 5. For better understanding,
VARIATIONS WHILE TESTING THE EA.
1. 1 How does the EA perform in H4 ,H1 30M, 15M. Lets see which time frame works well.
2. 2 What currency does it work best?
3. 3 How does it work using the the moving averages with RSI stochastic.
4. 4 And how does it work with both stochastic.
5. 5 Time differential like that of your EA should be added to it.
6. 6 To optimise profit high lot size be tested, in relation to capital size.
7.t 7 the report of testing be documented.
8. 8 . When target 1 and target 2 are meet, the EA should place more trades in the direction of the trend.
9. 9 If its H4 i.e four hour time frame, after take profit 20 and 30 pips have been taken,it should place more trades.
10. 10 If its H1 i.e one hour time frame ,after 10 and 15 pips ,profit target are meet, it can place more trade for another 10 and 15 pips take profit.
11. NOTE: All the above conditions are just trades one i.e 1 currency pair.
12. 11.Lots multiplier should be 1.667
13. . 12. Slippage 30.0
14. 13 please take note of pip gap.
15. 14. Maximum positions opened should not be more than 20 trades at any give time on all the currency pairs.