Momentum Divergence V2 EA

Automated Momentum Divergence Trading for MetaTrader 5

Momentum Divergence V2 is a configurable Expert Advisor that identifies regular bullish and bearish divergences between price and the Momentum indicator. It combines confirmed swing points with optional market filters, flexible position sizing and automated trade management.

Signals are evaluated using closed candles, with entries considered only after the relevant pivot has been confirmed. Traders can configure the signal settings, trading schedule and risk controls to suit their testing requirements.

Trading Approach

The strategy looks for differences between price movement and momentum:

• Bullish divergence: price forms a lower low while Momentum forms a higher low.

• Bearish divergence: price forms a higher high while Momentum forms a lower high.

A confirmed divergence becomes eligible for entry only when all enabled filters, trading restrictions and risk conditions are satisfied.

Signal settings include the Momentum period and price source, pivot strength, divergence lookback, minimum and maximum pivot separation, and minimum differences in price and Momentum.

Key Features

• Automated BUY and SELL trading, with independent direction controls.

• Divergence detection based on confirmed pivots and closed candles.

• Optional moving-average trend filter.

• ATR and candle-body volatility filters.

• Fixed-lot or percentage-risk position sizing.

• Optional equity-based compounding.

• Configurable Stop Loss and Take Profit methods.

• Break-even and trailing-stop management.

• Optional exit on a confirmed opposite divergence.

• Trading sessions, weekday selection and blocked trading intervals.

• Drawdown, daily-loss and consecutive-loss limits.

• Position limits, daily entry limits and entry cooldown.

• Spread filtering and execution deviation settings.

• Friday position closing.

• Magic Number identification and journal diagnostics.

Position Sizing

Choose between two position-sizing modes:

Fixed Lot
Uses the trading volume specified in the settings.

Risk Percent
Calculates trading volume using the configured risk percentage and Stop Loss distance. When compounding is enabled, the calculation uses current account equity.

Custom minimum and maximum volume settings provide additional control over position size.

Entry Filters

Optional filters allow users to restrict entries according to selected market conditions:

• Trend filter: configurable moving-average period, calculation method and price source.

• ATR filter: minimum and maximum permitted volatility.

• Candle-body filter: minimum and maximum candle-body size relative to ATR.

• Spread filter: maximum permitted spread.

• Entry timing: one decision per candle and a configurable delay between entries.

BUY and SELL trading can be enabled separately.

Stop Loss and Take Profit

Stop Loss methods

• Fixed distance in points.

• ATR-based distance.

Take Profit methods

• Fixed distance in points.

• Risk/reward ratio relative to Stop Loss distance.

• ATR-based distance.

Separate controls allow Stop Loss and Take Profit to be enabled or disabled.

Automated Position Management

Break-even management adjusts Stop Loss once the configured profit trigger is reached, with an optional offset beyond the entry price.

Trailing Stop uses configurable activation, distance and adjustment-step settings.

Opposite-signal exit can close a position when a confirmed divergence appears in the opposite direction.

Friday management can close EA positions at a specified time.

Risk Controls

The EA provides configurable limits for:

• Account equity drawdown.

• Daily loss.

• Consecutive losing trades.

• Simultaneous EA positions.

• New trades per day.

• Maximum trading volume.

Drawdown and daily-loss settings include the option to close EA positions when the respective limit is reached. A separate setting can block new entries when a manual trade or another EA’s position exists on the same symbol.

These controls help manage trading exposure but do not guarantee that losses will remain within the configured thresholds under all execution conditions.

Trading Schedule

Configure a trading session with start and end times, select permitted weekdays, and define a blocked interval during which new entries are restricted.

The blocked interval can also be configured to close existing EA positions.

Configuration and Diagnostics

Inputs are organised into groups covering:

• General settings, Magic Number and order comments.

• Trading symbol and signal timeframe.

• Trade directions and entry timing.

• Position sizing and volume limits.

• Risk controls and trading restrictions.

• Momentum divergence settings.

• Trend and volatility filters.

• Stop Loss, Take Profit and position management.

• Trading sessions and Friday closing.

• Journal messages and detailed signal diagnostics.

The trading symbol can be specified explicitly or left empty to use the current chart symbol.

Testing Before Live Use

Evaluate your chosen configuration in the MetaTrader 5 Strategy Tester before trading live. Use “Every tick based on real ticks” where available, the intended trading symbol and timeframe, and conditions representative of your broker.

Assess performance across different historical periods, including drawdown, trade frequency and sensitivity to spreads and trading costs.

Results can vary with the selected settings, broker data, symbol specifications and execution conditions.

Risk Notice

Trading involves the risk of financial loss. Momentum Divergence V2 does not guarantee profitability. Historical and backtest results do not guarantee future performance.

Use position sizes and risk settings appropriate for your account, and test each configuration before live deployment.