Mix of simple indicators
The Expert Advisor is based on the strategy known as the "Indicator mix". Here are the rules.
Buy right after EMA 5 (exponential moving average with the period of 5) crosses EMA 10 upwards. Stochastic should be directed upwards, while its lines should not be in the overbought zone. In other words, Stochastic value should not exceed the level of 80. RSI line should exceed the level of 50.
Sell right after EMA 5 crosses EMA 10 downwards. Stochastic should be directed downwards, while its lines should not be in the oversold zone. In other words, Stochastic value should not be below the level of 20. RSI line should be below the level of 50.
Main conditions for closing the orders. Several options are possible:
- EMA 5 crosses EMA 10 in the opposite direction;
- RSI crosses the level of 50 in the opposite direction.
The EA can be helpful to traders whose strategy is based on this or similar strategy.
The EA checks all strategy conditions. If they are fulfilled, the robot displays the arrow showing the possible trade direction and issues an alert.
In addition to checking the conditions, the EA provides additional functions – trailing stop and auto closing.
Let's have a look at the EA settings.
- Candles ago (0 – now) – how many candles ago does the EA check the entry conditions? If 0, the check is performed at the current time.
- Are you want to use trailing-stop? – enable/disable trailing stop. Note that the trailing stop interacts with all orders of the currency pair the EA is launched at. The trailing stop has two settings.
- Modify order every .. points of profit – if position moves a few points in favorable direction, the order is modified and stop loss is moved according to the equation "SL=Current price – next parameter"(for buy order). Similarly, if the price moves further in profitable direction passing the same amount of points since the first modification, the stop loss is moved again according to the same equation. Now, let's consider that "next parameter".
- Amount of points between the price and stoploss after modify – stop loss calculation equation has already been considered in the previous point. This number of price is deducted from the price and the stop loss is set at the obtained level.
- Autoclose by the strategy (work on profit orders only) – auto closing. According to the strategy rules, several position exit options are possible. The first one is at the discretion of a trader. In this case, simply disable auto closing. The second option: if Moving Average indicators are crossed in the direction opposite to the open position's one. The third option: if RSI crosses the level of 50 in the direction opposite to the open position's one. The second and third points are implemented into auto closing function. Note that only profitable orders are closed. In other words, if Moving Average indicators cross each other, or RSI crosses the level, while the trade is in the loss, the order is not closed.
- Max slippage – maximum permissible price slippage when modifying an order.
The arrows are not redrawn! False signals are also possible. This is a known strategy drawback. If a new arrow of the same direction appears, the previous one is removed in order not to overload the chart.
Do not forget that it is trader who makes the final decision about entering the market. The EA is only an additional tool. You should not rely solely on the magic arrows for $10. Good luck!