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CCI True Range Trader MT4

The CCI True Range Trader first detects price ranges and then enters the market based on signals by the Commodity Channel Index (CCI) and the Relative Strength Index (RSI) indicator.

Stop loss and take profit levels are calculated based on multiples of the Average True Range (ATR) indicator, you also have the option to configure them manually.


Market entry

In order to enter the market, all of the following conditions have to be met:

1. Timing

No trades at night or after hours. You can define the starting hour as well as the ending hour when the EA will stop entering the market.

2. Ranging market

To identify the absence of a trend, the Average Directional Index (ADX) indicator is checked. The ADX indicates the strength of a trend, when the ADX is below a certain level that you can specify, the ranging condition is valid.

3. Entry signal by the CCI indicator

To identify the bounds of a range, the CCI indicator is used. The CCI indicates the deviation from the mean of a price range. If the CCI is oversold, a buy signal is generated, if the CCI is overbought, a sell signal is created.

4. Entry signal by the RSI indicator

The RSI indicator is checked to detect a weakening in market strength. When the RSI indicates oversold price levels, a buy signal is generated, if the RSI shows overbought markets, a sell signal is created.


Take profit and stop loss

You have the option to choose either fixed levels or multiples of the value of the ATR indicator to set the levels for take profit and stop loss. When choosing the latter option, you have to specify a minimum take profit and a minimum stop loss level to avoid ATR values that are too small.

To protect your capital from losses, losing trades are offset by opening positions with an increased volume. This works particularly well in ranging markets, because the price will usually either revert to its mean or show some signs of consolidation.


SET Files

.set files containing the optimized parameters for the four major currency pairs (EURUSD, GBPUSD, USDJPY, USDCHF) are available for download in the comment section.


Parameters

Trade settings:

  • volumeCalculationMode - can be either FIXED or DYNAMIC. FIXED means trading with a fixed volume while DYNAMIC means risking a percentage of the account balance
  • fixedVolume - the fixed volume in lots, used when volumeCalculationMode is set to FIXED
  • dynamicRisk - the percentage of the balance that is risked on each trade when volumeCalculationMode is set to DYNAMIC
  • maxSpread - the maximum spread in points
  • maxDeviation - the maximum slippage in points
  • minTakeProfit - the minimum take profit level in points
  • minStopLoss - the minimum stop loss level in points

Time settings:

  • startingHour - the hour when the EA will begin entering the market in GMT time
  • endingHour - the hour when the EA will stop entering the market in GMT time

ATR settings:

  • useATR - when set to true, take profit and stop loss levels are calculated based on the ATR indicator. When set to false, minTakeProfit and minStopLoss are used as take profit and stop loss
  • atrPeriod - the period of the ATR indicator
  • atrMultiplier - the ATR is multiplied by this value to determine the stop loss and take profit levels

ADX settings:

  • adxPeriod - the period of the ADX indicator
  • adxAppliedPrice - the price the ADX is applied to
  • adxMax - the maximum value of the ADX indicator

CCI settings:

  • cciPeriod - the period of the CCI indicator
  • cciAppliedPrice - the price the CCI is applied to
  • cciOverBought - the level above which the CCI is considered overbought
  • cciOverSold - the level below which the CCI is considered oversold

RSI settings:

  • rsiPeriod - the period of the RSI indicator
  • rsiAppliedPrice - the price the RSI is applied to
  • rsiOverBought - the level above which the RSI is considered overbought
  • rsiOverSold - the level below which the RSI is considered oversold
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