Envelopes breakout mastery

This Expert advisor is based on rules of excellent breakout strategy. Envelopes are used to define the price tunnel. EA doesn't use any additional filter. It is therefore able to trade breakouts occurring at the beginning of new, not yet identified trend. Breakout signal is accurate. To enter the trade, EA will consider multiple factors including breakout candle body size, immediate candle formation, candle volume and market facilitation. Accuracy of breakout signal is increased by applying innovative method for comparing market facilitation to previous bars. During our standard test (13 years of data) EA achieved stable performance with profit factor above 1,7. Trading robot can be further optimized and applied on any instrument. It is also able to trade multiple pair simultaneously on same MT4 account.

How does it work

Envelopes tunnel is drawn according to users specification. Breakout candle must close outside the tunnel, while previous close occured within the tunnel. Breakout candle surpasses previous candle high/low with growing volume. Market facilitation is multiplied (according to input factor) and compared to previous bar. Trailing stop is based on broken envelopes line and placed immediately upon the entry. TS will be the only method for position liquidation.

Inputs:

• Envelopes signal (breakout): We will be looking for breakout candle on envelopes. Breakout candle must meet defined criteria. To define sensitivity of the signal adjust period and deviation of the envelopes.
• Universal trailing stop (Extra deviation for the trail stop). Based on broken envelopes 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.
• Market facilitation by Bill Williams: Market facilitation and volumes increases compared to previous candle. New traders are entering the trend in the direction of candle close (our signal). Momentum picks up the speed. MF increase factor is used to define how much should MF grow on signal candle compared to previous candle.
• MF increase factor: Defines how much should MF increase compared to previous candle. Calculation: (MF on previous candle* MF increase factor must be less than MF on last closed - signal 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. Breakout Signal candle closing below the bottom envelopes line. 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.
2. Signal (breakout) candle closes below the low of previous candle, with volume larger than on previous candle.
3. MF on signal candle is larger than MF on previous candle* MF increase factor defined in inputs.
4. We enter the trade short on signal candle close (new candle open).
5. We place TS at the bottom envelopes line + extra deviation above.
6. Position can only be closed by TS.

BUY

1. Breakout Signal candle closing above the upper envelopes line. 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.
2. Signal (breakout) candle closes above the high of previous candle, with volume larger than on previous candle.
3. MF on signal candle is larger than MF on previous candle* MF increase factor defined in inputs.
4. We enter the trade long on signal candle close (new candle open).
5. We place TS at the upper envelopes line - extra deviation above.
6. Position can only be closed by TS.

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

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.