Difference of Two Moving Averages
This professional-grade solution for MetaTrader 5 helps traders achieve greater efficiency in their daily workflow. 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 Difference of Two Moving Averages
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
This expert advisor has been developed after observing when two moving averages diverge and converge, there is a typically a maximum difference between the instantaneous values of the two moving averages before the trend changes.
The difference of the two moving averages is amplified by a non-linear cubic transfer function to differentiate between major and minor excursions from zero. The final step is a simple level discriminator with high and low thresholds which responds to the major excusions before signalling a change of trend.
Whilst this advisor with default settings produces good optimised results over the period of the last Championship using 1H time frame with EURUSD, it exhibits the usual characteristic of requiring different parameters for optimum results over a different time period.
In the interest of reducing optimisation time the advisor does not use a custom indicator, although a custom incremental indicator is included for use with the strategy tester in visualisation mode and this can be disabled in the optional line GI=iCustom(NULL,0,"madelta_inc",d,m,F,FM,FP,S,SM,SP); The indicator demonstrates the operation of the cubic function with high and low threholds and the signal colour changes to yellow for buy and red for sell.
Recommendations:
I welcome any suggestions as to how this advisor could become self optimising so as to produce consistent results over different time frames.
