Price Time Correlation Trading Model
This software component for MetaTrader 4 is built to enhance the capabilities of your trading environment. 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 Price Time Correlation Trading Model
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
The price-time correlation EA uses the value and direction of the price-time correlation as a basis for trade signals. Two trade strategies, Trend and Reversal, are available. In addition, four methods of computing the correlation value are provided: Pearson, Spearman, Kendall and Fechner methods. These methods are provided in the accompanying include file and are based on the MQL5 correlation indicators developed by A. Fedsov and provided with his article “Practical Application of Correlations in Trading”.
The ADX and Bollinger Bands indicator values are used as additional trade entry filters along with time of day. An open trade can be closed based on a trade signal reversal.
This EA uses the H1 EURUSD chart and is tested from Jan 2010 thru July 2019.
This correlation based trading strategy is robust and works well across several currency pairs and over large time periods, as far back as 2004.
