MM A Breakout strategy Volume I - coded by Whoo Doo22
This is a powerful addition to your MetaTrader 4 toolkit designed to optimize market analysis and performance. This Expert Advisor serves as automated trading software. It is utilized to monitor financial markets and execute trades based on predefined algorithmic rules, enabling precise position management without the need for constant manual oversight.
How to Setup and Use MM A Breakout strategy Volume I - coded by Whoo Doo22
1. Installation: Open the "File" menu, select "Open Data Folder," navigate to MQL/Experts, paste your file, and restart the terminal.
2. Activation: Drag the EA from the Navigator onto a chart, ensure "Allow live trading" is checked in the Common tab, and verify the AutoTrading button is green.
3. Optimization: Right-click your chart, choose "Expert List," click "Properties" to adjust inputs, and save your preferred setup as a set file for future use.
4. Maintenance: Regularly check the "Experts" tab in the terminal window to monitor trade logs and potential execution errors.
Frequently Asked Questions
Q: Why is my EA not opening trades? A: Check the "AutoTrading" button, ensure "Allow live trading" is enabled, and verify your broker allows automated trading on your account type.
Q: Can I run multiple EAs on one chart? A: No, each chart can only host one active EA; however, you can open multiple charts for different currency pairs to run several EAs.
Q: What does the "smiley face" icon mean? A: A smiley face in the top-right corner of the chart indicates the EA is successfully running; a frowny face means it is disabled.
Description & Settings
Description:
MMA_Breakout_strategy_Volume I - coded by WhooDoo22 (Multi Moving Average Breakout Strategy Volume I).
WhooDoo22.
Strategy Instructions:
Currency pair: EUR/USD.
Time-frame: M30.
(Be sure to run EA from years 2003.01.01-2012.06.01 and be sure to run strategy in strategy tester using "Open prices only" instead of "Every tick" to speed up testing)
Strategy Explained:
Strategy is based on the equation resistance over support (R/S) and the theory that the market moves in trends (containing smaller ranges) or consolidated horizontal movement (containing smaller ranges).
Strategy Objective:
Capture profits of trends and ranges.
1. To capture small range profits, the EA uses small moving averages like an EMA period of 5 and an SMMA period of 25.
2. To capture large trend profits, the EA uses larger moving averages such as an SMMA period of 50 and an SMMA period of 200.
Strategy Open Signal:
Open buy/sell order of 0.04 lots when SMMA period of 1 crosses above/below SMMA period of 200.
Strategy Close Signal:
Close buy/sell orders of 0.01 lots when SMMA period of 1 crosses back below/above slower moving averages of EMA 5, SMMA 25, SMMA 50, and SMMA 200.
(partial order close function included )
Strategy Strengths:
1. Big Breakouts = Good signal for closing big profits for smaller moving averages of EMA 5 and SMMA 25.
2. Strong Trends = Good signal for closing big profits for larger moving averages of SMMA 50 and SMMA 200.
Strategy Weaknesses:
1. Fake Outs = Bad signal for closing orders creating small losses. Remember, multiple small losses accumulate a large loss. Typically a large moving average of 200 in a consolidated horizontal movement where the moving average of 1 crosses above 200, then quickly crosses back below 200, then quickly back above 200 can give the EA bad signals. This type of market condition ( consolidated price movement) therefore can be a moving average crossover of 1 and 200 worst nightmare!
Decrease Weakness to Increase Strength:
If you choose to improve this strategy and use it to further improve your MQL4 education, you can incorporate the following two updates.
1. Use an icustom indicator which draws multiple moving averages that adjust its moving averages to a certain period of bars in history ago (example: Multiple Moving Averages icustom indicator will count the last sixty bars and write its moving averages to "spear" through the ranges.)
2. Adjust the order close functions to close orders more efficiently. (
A.
Sell order example. Sometimes when the SMMA 1 crosses below SMMA 200, the slower moving averages of 5,25, and 50 are still above the 200 moving average. The problem is this: If the SMMA 1 crosses back above the SMMA 200, only 0.01 lots are closed. This leaves 3/4ths of the orders open. This should be fixed so that all orders (0.04 lots) are closed when SMMA 1 crosses back above SMMA 200. The reason is to minimize losses. If orders 0.03 are left open, this means more loss (with a small possibility of profit).
B.
Incorporate a consolidated price movement filter to remove "Bad signals" in consolidated price movements. (Consider coding the EA to let it "wait" for a breakout during consolidated price movements, because breakouts are this strategy's strength )
Credits:
Me and the MQL4 community.
Thank You!
