Trend identification

• Firstly, trend needs to be identified. Still, one of the best tools to identify trend - MACD is used and doubled to distinguish between major trend and current market situation on our timeframe.

1. Default periods for major MACD filter (alpha): 250 slow , 150 fast
2. Defaults periods for major MACD filter (beta): 100 slow , 50 fast

• Trade zone is always created to follow the direction of both trends (major and current). For purpose of trend identification, signal line is omitted from MACD calculation and we will consider only MACD histogram.

1. If histogram closes below zero- downtrend (sell only).
2. If histogram closes above zero – uptrend(buy only).

Signal

• Bollinger bands are used to simply determine relatively high / low price in the trend to ensure the best entry. If markets decides to reverse after the signal, orders will simply not be triggered as it waits above/below the market. BB with period 60 is used in test.

1. Price touching upper BB while in dowtrend – sell signal.
2. Price touching bottom BB while in uptrend - buy signal.

• Advanced trailing stop: Each position has separately managed, advanced trailing stop that is being adjusted after each candle close. Trailing stop protects position profit before the next trade gets triggered.

Adjustable parameters

• Secondary MACD filter (current market trend)
• Beta MACD Fast EMA 2: Adjust calculation period for fast Moving average of MACD histogram
• Beta MACD Slow EMA 2: Adjust calculation period for slow Moving average of MACD histogram
• Primary MACD filter (major market trend)
• Alfa MACD Fast EMA: Adjust calculation period for fast Moving average of MACD histogram
• Alfa MACD Slow EMA: Adjust calculation period for slow Moving average of MACD histogram
• Take profit: Take profit for all orders (in points). Postion will be liquidated at whatever gets hit first (trailing stop/profit target).
• Stop loss: Predetermined stop loss for all postions (in points).
• BB dev: Deviation input for Bollinger bands indicator. Higher the setting less grequent the signal.
• BB period: Calculation period for Bollinger bands forex indicator (signal).
• Stay valid: determines how long will untriggred orders remain valid (in days).
• Lot size: Stable lot size for all positions. All postions will pe placed with this lot size.
• Increments for all: Determines the distance between positions. This setting has profound impactt on strategy drawdown and profit. When switching between timeframes adjustment is necessary.
• Extra deviation: detemines additionsl distance between closed candle high/low and the trailing stop (in points).

Rules

SELL rules.

1. Both MACD histograms closing below zero.
2. Price touches the upper BB.
3. First pending order for sell (sell stop) is placed 10 pis below the market price.
4. Another 11 orders are than placed in ten pips increments below the first order.
5. Each with stop loss of 10 pips and take profit of 100 pips.
6. Trailing stop is adjusted after each candle close. Place it ten pips above closed candle high.

Buy rules.

1. Both MACD histograms closing above zero.
2. Price touches the bottom BB.
3. First pending order for buy (buy stop) is placed 10 pis above the market price.
4. Another 11 orders are than placed in ten pips increments above the first order.
5. Each with stop loss of 10 pips and take profit of 100 pips.
6. Trailing stop is adjusted after each candle close. Place it ten pips below closed candle low.

Test Results (Tick EURUSD 1H, 2013.01.01 - 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 data: High accuracy testing on EURUSD 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.
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• Works with any time frame: Simply drag and drop the expert on time frames you would like to use.
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• 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.