Disclaimer: Trading on a real account carries risks, and this EA may not be profitable in the long run.
Welcome to the world of automated trading! Today, we’re diving into the MAC-Fibo EA, designed specifically for MetaTrader 4. This EA is built on the MACFibo trading strategy. If you're looking for the indicator, you can find it here.
For more in-depth insights about this strategy, check out the details here and on the BabyPips forum here.
Short Signal Setup
When the 5 EMA crosses the 20 SMA downward, here's what you need to do:
- Point A: The candle close price that confirms the downside crossover.
- Point B: The highest price of the current wave before the crossover.
Profit Target: Aim for the 161.8 Fibonacci level.
Stop Loss: Set your stop loss to a maximum of 38.2 (or a minimum of 78.6), depending on your risk appetite.
Long Signal Setup
When the 5 EMA crosses the 20 SMA upward, follow this process:
- Point A: The candle close price that confirms the upside crossover.
- Point B: The lowest price of the current wave prior to the crossover.
Profit Target: Again, look for the 161.8 Fibonacci level.
Stop Loss: Set it to a maximum of 38.2 (or a minimum of 78.6) tailored to your risk preference.
Exit Strategy
If your trade starts to go south and the stop loss hasn't been hit yet, consider exiting if the 5 EMA crosses the 8 SMA in the opposite direction of your open position.
Happy trading, everyone! Remember, always trade responsibly and keep learning!
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