MT4 EA - Mean Reversion System

Mean Reversion System

Main Idea:

The main idea is to trade on the cross between a symbol and its mirror image (invert correlation). The system uses mean reversion which at the time of crossing the price reverts to the mean.

·        *Yellow line is the real price.

·        *Green line is the mirror price.

For all timeframes, for all symbols.

Indicators Used:

·        Main Signal: MT4Correlation – This is used to make a mirror image of the symbol on the same chart

·        Secondary Signal: Moving Average

·        Secondary Signal: Heiken Ashi

Methodology:

·        IF Main Signal: MT4Correlation price crosses the mirror price the system will check for the below secondary signals if they are enabled (true) on the inputs. If the price crosses from below it’s a BUY signal if it crosses from above a SELL signal.

·        Moving Average If the MA line is below the price it’s a BUY signal if the MA line is above the price its a SELL signal.

·        Heiken Ashi If its enabled in inputs, it’s another secondary signal that shows a BUY signal or SELL Signal.

Example:

Above we have GBPUSD price indicated as Heiken Ashi candles with the mirror price (MT4Correlation) indicator.

·        On the blue circle the price crossed. The price was coming from below going up and that means a BUY signal on the main signal.

·        The third signal is the Moving Average which is in the correct positions – below the price – BUY sigbal

·        The fourth signal is the Heiken Ashi candles which as you can see its already a BUY signal.

·        All signals signify a BUY.

·        The EA should either trade on market or enter a Limit order (Buy Limit) depending on the distance indicated in inputs.

Inputs:

·        extern string Section1 = "============== Basic Settings ===============";

·        extern double LotFixed = 0.1;

·        extern bool AutoLot = false;

·        extern double LotPercent = 2.0;

·        extern int SL = 0;

·        extern int TP = 0;

·        extern int MaximumTrades = 1;

·        extern int Expiration = 5;  <--- Number of candlesticks (default: 5) that the order will expire – If the Orders = true below

·        extern bool Orders = true;

·        extern int OrderAwayFromPrice = 5; ß This option will put an order, instead of a market trade at specified points. As default its 5 which means 5 pips away from the price.

·        extern bool Trade_With_Mirror_Signal = true;

·        extern string Section2 = "=============== Trailing Stop ================";

·        extern bool TrailingStop = false;

·        extern int TrailDist = 5;

·        extern int TrailStep = 5;

·        extern bool TrailAfterProfit = false;

·        extern bool Virtual_Trailing = false;

·        extern string Section3 = "============== Moving Average Signal ===============";

·        extern bool MA_Signal = true;

·        extern int MA_Period = 13;

·        extern int MA_Shift = 0;

·        extern int MA_Method = MODE_EMA;

·        extern string Section3 = "============== Heiken Ashi Signal ===============";

·        extern bool HA_Signal = true;

·        extern string Section4 = "============== Alerts ===============";

·        extern bool Show_Alert = false;

·        extern bool Play_Sound = false;