Meet the Creators: The brains behind this trading strategy are Oksana Berenko for the trading idea and barabashkakvn for the mq5 coding.
This Expert Advisor (EA) leverages three key indicators: MA(150), RSI(3) with levels set at 80 and 20, and Stochastic(6, 3, 3) with thresholds of 70 and 30. Feel free to tweak these parameters to suit your trading style!
1. Determining Trade Entry Direction: The direction for entering trades is guided by the Moving Average (MA). Only one trade will be opened at a time in a single direction.
- If the Bid price is greater than the MA, look to buy.
- If the Ask price is less than the MA, consider selling.
2. Position Entry Criteria: You’ll enter a position when both RSI and Stochastic conditions align.
- Buy when RSI is below 20 and Stochastic is below 30.
- Sell when RSI is above 80 and Stochastic is above 70.
3. Exiting Trades: The exit strategy is based on the Stochastic indicator.
Exiting with Profit
- (Trailing Stop = 0) If the trailing stop is set to zero, close the position when the opposite Stochastic level is hit, provided the trade has made a profit in points.
Close BUY if Stochastic > 70 and Open Price <= Bid
Close SELL if Stochastic < 30 and Open Price >= Ask
- (Trailing Stop > 0) If you have a trailing stop set, once the opposite Stochastic level is reached, the stop loss will adjust with each new candlestick while maintaining the specified distance from the price. Be cautious, as this might lead to a loss if the stop loss isn’t moved to break even promptly.
Exiting with a Loss
- (Allow Loss = 0) If 'allow loss' is set to 0, close the position upon hitting the opposite Stochastic level, if the trade has incurred a specified loss in points.
Close BUY if Stochastic > 70 and Open Price > Bid
Close SELL if Stochastic < 30 and Open Price < Ask
- (Allow Loss > 0) If 'allow loss' is set and you’ve exited the entry zone according to the Stochastic, the position will close if the trade has a loss that meets or exceeds the specified points.
Close BUY if Stochastic > 30 and Open Price - Bid >= allow Loss in points
Close SELL if Stochastic < 70 and Ask - Open Price >= allow Loss in points
Here’s how it performed during testing on the EURUSD H1 timeframe:
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