Reversal Strategy
This tool for MetaTrader 5 is specifically engineered to streamline your trading operations. 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 Reversal Strategy
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 uses three indicators to identify reversal of the price of a symbol. It uses a simple moving average along with a standard deviation and the RSI.
It sends a buy signal when the open price is lower than the moving average minus 2 times the standard deviation and the RSI is lower than the oversold value and the close price is higher than the moving average minus 2 times the standard deviation and the RSI crosses the oversold signal upwards. The take profit is equal to the ask price plus 2 times the standard deviation at the time and the stop loss is equal to the ask price minus the standard deviation at the time. It sends a sell signal when the open price is higher than the moving average plus 2 times the standard deviation and the RSI is higher than the overbought value and the close price is lower than the moving average plus 2 times the standard deviation and the RSI crosses the overbought value from above. The take profit is equal to the bid price minus 2 times the standard deviation at the time and the stop loss equal to the bid price plus the standard deviation at the time.
The buy position closes when the close price is higher than the moving average plus 2 times the standard deviation and the sell position closes when the price gets lower than the moving average minus 2 times the standard deviation. It resembles the boilinger bands technique.
This strategy is better used during non-volatile hours when there is no apparent trend and the market is more predictable. Its goal is to make a lot of small profits. The only symbols that should be traded using this strategy is the EURUSD and in lesser degree the GBPUSD. I trade only the EURUSD in small timeframes such as M5.
