Adaptive Moving Average Expert
- Experts
- AL MOOSAWI ABDULLAH JAFFER BAQER
- Version: 1.0
- Activations: 5
Title: Adaptive Moving Average EA
Price: $30
Please note: This Expert Advisor is provided as a foundational tool. It has not been pre-optimized. It is designed for you to explore, test, and find the optimal settings that align with your personal trading strategy and risk tolerance.
The Adaptive Moving Average EA is a trading tool built upon the principle of the Adaptive Moving Average (AMA). Unlike standard moving averages, the AMA adjusts its calculation speed based on market volatility, aiming to be more responsive during active market periods and smoother during calmer times.
This EA provides a clean and straightforward implementation of an AMA crossover strategy, giving you a solid framework to build upon. All essential parameters are externalized, allowing you to thoroughly test and adapt the EA to various currency pairs and timeframes.
Key Features:
-
Adaptive Core Strategy: Utilizes the Adaptive Moving Average for its trading logic.
-
Dual Entry Logic: Signals are generated based on both direct price crossovers and "touch and bounce" scenarios from the AMA line.
-
Flexible Exit Conditions: You can choose between a fixed Stop Loss and Take Profit or enable a strategy-based exit, where positions are closed on a reverse signal.
-
Trade Filters: Control trade frequency with settings for minimum bars between signals and a minimum distance for a valid crossover, helping to reduce market noise.
-
Session Control: Specify the trading hours to operate the EA only during your preferred market sessions.
-
Full Customization: Adjust AMA periods, lot sizes, Stop Loss, Take Profit, and more.
-
On-Chart Visuals: Includes an information panel and trade arrows to monitor the EA's status and actions directly on your chart.
Logic Behind the Expert Advisor
This section provides a detailed explanation of the EA's operational logic in a calm and clear manner.
Core Indicator: The Adaptive Moving Average (AMA)
The foundation of this EA is the Adaptive Moving Average, an indicator designed to automatically adjust its sensitivity to price movements. It moves slowly when the market is ranging and speeds up when the market is trending. This is achieved by modifying the smoothing constant based on the directional movement of the price.
Trade Entry Logic
The EA identifies potential trading opportunities when the price interacts with the AMA line in one of two ways:
-
Standard Crossover:
-
A Buy signal is generated if the previous bar's closing price was below the AMA, and the most recently completed bar's closing price is above the AMA.
-
A Sell signal is generated if the previous bar's closing price was above the AMA, and the most recently completed bar's closing price is below the AMA.
-
-
Touch and Bounce:
-
A Buy signal can also be generated if the price approaches the AMA from below, touches it or gets very close, and then "bounces" upward, provided the AMA itself is also trending upwards. This suggests a continuation of the uptrend.
-
A Sell signal can similarly be generated if the price approaches the AMA from above, touches it, and "bounces" downward while the AMA is trending downwards, suggesting a potential trend continuation to the downside.
-
Trades are only executed on the opening of a new bar to ensure the signal is confirmed.
Trade Exit Logic
The EA offers two distinct methods for closing an open position:
-
Fixed Stop Loss and Take Profit: This is the standard method where you define a Stop Loss and a Take Profit level in points. The position will be closed automatically if either of these levels is reached.
-
Strategy-Based Exit: If this option is enabled ( InpStrategyBasedExit = true ), the EA will close a position when a reverse signal occurs.
-
An open Buy position will be closed if the price crosses back below the AMA.
-
An open Sell position will be closed if the price crosses back above the AMA.
-
Trade Filters and Management
To provide more control over trading activity, the EA includes several management features:
-
Minimum Bars Between Signals: This input prevents the EA from opening new trades too rapidly after a previous one, ensuring a set number of bars pass before a new signal is considered.
-
Minimum Cross Distance: To avoid false signals during low volatility when the price is very close to the AMA, this filter requires the price to cross the AMA by a certain minimum distance (in points) for the signal to be valid.
-
Time Filter: You can restrict the EA's operation to specific hours of the day, which is useful for avoiding periods of low liquidity or high volatility, such as news events.
We invite you to explore our other trading tools and indicators.
Please visit our MQL5 seller page for more products: https://www.mql5.com/en/users/1218858/seller
