Breakout dynamo. RSI and envelopes MT4 Expert advisor

Breakout trading expert advisor that is based on solid and time tested rules. Those rules are applicable across all timeframes and FX instruments. EA includes several innovations making it one of the best performing breakout trading systems in our portfolio. Trend and momentum is identified by applying doubled RSI filter. Breakouts occuring in its direction have much higher win rate. Signal is robust, defined by breakout candle and its volume. Entry occurs only upon signal completion (breakout candle close). System follows the breakout for as long as market permits. This is done by using advanced trailing stop, based on the tunnel that just got broken. Price returning within tunnel will create suitable exit point. Risk reward ratio of the whole system will remain positive. System achieved profit factor nearing 1,5 while winning only 40 percent of trades. Aggression of the system can be fluently modulated by applying it on multiple currency pairs simultaneously, or allowing it to open more than one trade per instrument. Naturally, system come with spread and slippage filter.

How does it work

Trend is identified using doubled RSI filter. Breakout will be traded only in this direction. Breakout candle with defined size, growing volume must surpass previous low/high. Previous close occured within Envelopes tunnel. Trailing stop is placed upon the entry. It will be based on envelopes line that just got broken. Take profit based on envelopes tunnel width (used deviation) is also placed.

Inputs used in expert advisor

• RSI trend filter ( doubled, different period for each) : Central gap, distance below and above 50 line in the indicator. Buy above 50. Sell below 50. Central gap value will modify sensitivity of the expert to the trend and momentum.
• Signal (breakout) candle size max/min. Signal is also based on breakout bullish/ bearish candle. We define its body size. Larger the candle, more momentum is present in the trend. Signal candle must close in the direction of trend defined by the trend filter. Previous candle close was within the tunnel range.
• Envelopes (deviation, period): Envelopes will draw tunnel. Brekakout will be signaled by price closing either above or below the tunnel while previous candle closed within tunnel.
• Universal trailing stop (Extra deviation for the trail stop). TS is adjusted after each candle close. It is based on envelopes line that just got broker (signaled breakout). TS will be adjusted in the direction of winning trade only. Extra deviation can be applied to cover more distance (EA will be better able to follow the trend).
• MAX number of trades: Expert advisor can work with more than one trade opened per side.
• Volumes: volume value of signal candle must be larger than on previous candle.
• MAX slippage:
• Spread filter: Define maximum acceptable spread for expert advisor to enter the trade.
• Extra points for profit target: Tunnel width is used as profit target. This input allows to increase take profit ditance.
• Lot size: Define the lot size for each trade executed by the expert advisor.

RULES of the expert advisor

SELL:

1. RSI trending below 50 line minus the central gap value (for both RSI filters). This is considered to be a downtrend.
2. Price closing below bottom envelopes line while previous close was within the tunnel.
3. Price closing with bearish breakout candle with defined body size (min – max).
4. Upon the entry, trailing stop is placed at the bottom envelopes line + extra deviation of the TS above.
5. Take profit is also placed by the system, Extra points for profit target may be applied.
6. Postion is closed either by TS or TP.

BUY:

1. RSI trending above 50 line plus the central gap value (for both RSI filters). This is considered to be a uptrend.
2. Price closing above upper envelopes line while previous close was within the tunnel.
3. Price closing with bullish breakout candle with defined body size (min – max).
4. Upon the entry, trailing stop is placed at the upper envelopes line - extra deviation of the TS below.
5. Take profit is also placed by the system, Extra points for profit target may be applied.
6. Postion is closed either by TS or TP.

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

• Modelling quality 90.00%
• Mismatched charts errors 0
• Initial deposit 2000.00
• Spread 10
• Total net profit 4446.34
• Gross profit 13843.58
• Gross loss -9397.24
• Profit factor 1.47
• Expected payoff 16.23
• Absolute drawdown 47.31
• Maximal drawdown 726.68 (10.68%)
• Relative drawdown 26.47% (703.02)
• Total trades 274
• Short positions (won %) 124 (46.77%)
• Long positions (won %) 150 (43.33%)

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.