Breakout eclipse. (EMA and Bollinger Bands) MT4 Expert advisor

Solid breakout trading expert advisor, that has easily reached profit factor over 1,7 in our extensive historical test. EA is based on conservative and time tested set of rules. Those are reliably applicable on all major instruments and timeframes above 1H. Breakout occurs on Bollinger Bands tunnel, which considers price volatility in calculations. Risk reward ratio has surpassed 1:2 with used input combinations (there are many more to be used successfully with similar results). Strategy can therefore win only about 40 percent of all trades and still achieve positive results.

How does it work

Trend is identified by exponential moving averages (two pairs). All breakout will be traded strictly in the direction of this trend. Breakout will occur on bollinger bands. Validity of signal is filtered by specific breakout candle (defined size), volume growing on breakout and simple candle formation of the breakout (surpassing previous high/low in the direction of breakout). Position is closed via advanced trailing stop, placed immediately after the entry. EA can manage multiple trades opened simultaneously per side.

Inputs:

• EMA filters (two EMA pairs): Both Tandems must confirm the trend direction. EMA fast must close above EMA slow for uptrend confirmation and vice versa. Entry must follow the trend.
• Bollinger bands signal (breakout): We will be looking for breakout candle on bollinger bands. Breakout candle must meet defined criteria. To define sensitivty of the signal adjust period and deviation of the BB.
• Universal trailing stop (Extra deviation for the trail stop). Based on broken Bollinger bands line. Extra deviation can be applied to put TS further away from the entry. TS will be adjusted with each consecutive candle close, only in the direction of winning trade.
• Signal candle (breakout): Candle with defined body range (min/max ) closing in the direction of trend (defined by filter). Candle must surpass previous low/high in the direction of trend. Previous close was within the BB tunnel.
• Volumes: Volume value of signal candle (breakout candle) must be larger than on previous candle.
• MAX number of trades (1 in test): Expert advisor can work with more than one trade opened per side. This parameter will modify number of trades that can be opened per side at the same time.
• Magic number buy/sell: Change this number when using more than one MT4 expert advisor per currency pair.
• MAX slippage:
• Spread filter:
• Lot size:

Rules of the expert advisor

SELL

1. In both EMA tandems EMA fast trending below EMA slow. Downtrend is present in the market. Enter short only.
2. Breakout Signal candle closing below the bottom Bollinger band. Previous close was within the tunnel. Volume on signal candle is larger than on previous candle. Body of signal candle meets criteria for minimum/max size.
3. We place TS at the bottom BB + extra deviation above.
4. Closing the trade: We close the position once price closes back within the tunnel or as it hits TS.

BUY

1. In both EMA tandems EMA fast trending above EMA slow. Uptrend is present in the market. Enter long only.
2. Breakout Signal candle closing above the upper Bollinger band. Previous close was within the tunnel. Volume on signal candle is larger than on previous candle. Body of signal candle meets criteria for minimum/max size.
3. We place TS at the upper BB - extra deviation below.
4. Closing the trade: We close the position once price closes back within the tunnel or as it hits TS.

Test Results (Tick EURUSD 1H, 2003.01.01 - 2016.11.24)

• Bars in test 87138
• Ticks modelled 138132110
• Modelling quality 90.00%
• Mismatched charts errors 0
• Initial deposit 2000.00
• Spread 10
• Total net profit 3013.52
• Gross profit 7098.67
• Gross loss -4085.15
• Profit factor 1.74
• Expected payoff 8.71
• Absolute drawdown 20.53
• Maximal drawdown 332.51 (7.41%)
• Relative drawdown 10.30% (321.99)
• Total trades 346
• Short positions (won %) 153 (43.14%)
• Long positions (won %) 193 (44.56%)
• Profit trades (% of total) 152 (43.93%)
• Loss trades (% of total) 194 (56.07%)

Expert advisor is based on transparent and fully tested forex strategy.

Original and transparent MT4 expert advisor. Developed and created by professional FOREX traders at kingsraid.wiki . Tested for profitability on EURUSD tick data since 2003. Thousands of viable input combinations available for EURUSD alone. Works with any timeframe and any FX pair.

Main features of this expert advisor:

• Tested on high quality tick data: High accuracy testing on EURUSD tick data (1H). 100+ Viable inputs combinations for EURUSD pair alone.
• All inputs unlocked: You can adjust and modify your expert inputs. It can be then applied on any time frame and any currency pair. You can modify the settings at will to achieve the best possible results and make the expert suit your needs.
• Transparent expert advisor: No smoke and mirrors. Rules are clearly stated and functionality can be easily verified by manual charting on forward or historical data.
• Works with most of the MT4 Forex brokers: Our expert advisors were adjusted to work with almost any MT4 FOREX broker.
• Works with any time frame: Simply drag and drop the expert on time frames you would like to use.
• Works on any currency pair
• Expert advisor will not draw any indicators in your chart.

Disclaimer and user agreement:

Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer. TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.