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Five Indicator Algoritm
5IA is a five indicator based algorithm that uses the following indicators:
- Baseline: Ichimoku (Kejunsen)
- Confirmation Indicator: CMF
- Volume/Volatility: CHV
- Exit Indicator: CCI
- Money Management: ATR;
I learned this strategy from VP's channel (Check out his youtube channel " No Nonsense Forex" for this strategy and more forex conceps) and decided to create an expert advisor on it.
Before I go any further I want to mention that I'm not affiliated with the above mentioned channel or company, this is my take on the strategy.
Time Frame: This expert advisor works on all timeframes, but it’s build with the daily one in mind;
Account balance: it doesn't matter, but I recommend at least 1000 EUR or 1500 USD;
Currency pair: Doesn't matter ;
- Set your own level of risk (Percent of the account equity. Default 2%).
- Dynamic lot sizing ;(Ex: the lot size will change based on the market volatility and your risk or you can use the fixed lot size option for a manual setting.)
- Finetune your stop loss and take profit levels (SLRatio and TPRatio) by ATR multiples or manual setting in points;
- Dynamic trail stop.
(Ex: On a valid signal (from Baseline, Confirmation and Volume indicator) the system will place 2 orders, only one will have a take profit in place. As soon as the take profit is attained the second will automatically have it’s stop loss moved at break even. If the market continues to move in your direction the stop loss will follow the price at the chosen stop loss level, until the price hits it or the Exit indicator closes the position.)
- 5IA parameters can be changed by the user to accommodate different currency pairs (I strongly recommend to use the mt4 Strategy tester to find your own personalized settings per currency pair).
- a functional Baseline that protects against price turning and limiting losses, also deciding the direction of allowed trades;
- a confirmation indicator is used for getting the buy or sell signals;
- the volume/volatility indicator for preventing a sideway market order and false signals .
- Controlled order exits based on the CCI indicator;
- Money management with the use of ATR, affecting the stoploss, takeprofit, and lot sizing (can be turned off);
Manual_Mode_Points = False Change between use of ATR (False option) and Manual setting in Points (True option) for SLRatio, TPRatio, TPRatio2 Default False;
DynamicStoploss = True Dynamic Stop loss feature;
Risk = 2; Maximum risk allowed per trade Default 2%
FixedLots = 0.0; Change this with the desired lot size if you don’t want an automated lot sizing based on the Risk.
SLRatio = 1.5; Stop loss ratio. Calculated based on the ATR indicator, setting this to 1.75 will place the stop loss 1.75*ATR
TPRatio = 1.0; Takeprofit ratio. Calculated based on the ATR indicator, setting this to 1.5 will place the takeprofit 1.5*ATR.
TPRatio2 = 0; Takeprofit ratio2. Set this as the above TPRatio if you turned of the DynamicStopLoss, else leave it at 0 or play with different values;
BaseLineParameter = 26 ; The parameter for the Baseline Indicator.
Conf1_Parameter = 18; The parameter for the Confirmation Indicator.
VolumeParameter = 14; The parameter for the Volume/Volatility Indicator.
ExitParameter = 20; The parameter for the Exit Indicator.
CCILevel1 = 120; Exit Indicator upper level.
CCILevel2 = -120; Exit Indicator lower level.
Big thanks goes to “VP”, check him out his youtube channel, “NoNonsenseForex” !!!
- set the option to True in order to manually set the Stop Loss, Take Profit1 and Take Profit2 in points ;
- set the option to False in order to have automatic setting by using multiples of ATR;