Reply To: Description of Price Action Moving Averages Strategy

Forums Strategies and Expert Advisors Price Action Moving Averages EA Description of Price Action Moving Averages Strategy Reply To: Description of Price Action Moving Averages Strategy

#4694
DominikDominik
Administrator

Hi!

I would like to proudly present first official version of Price Action Moving Averages EA: 1.0 :)

Most parameters of this EA is the same as in the Price Action Engulfing Candles EA, published on this forum some time ago, so I suggest to read about them first (if you don’t know them yet) in this topic:
https://theinvestbay.com/viewtopic.php?f=3&t=2.

This is the list of parameters or Price Action Moving Averages EA:

I will describe only these parameters that are different from those in Price Action Engulfing Candles EA.

One of the first parameters is “Min_Candles_After_Next_Trade” which defines minimal amount of candles that must pass after opening order to open another order. This parameter protects deepening another losses and limit their number to only one in a row.

In block “Opening orders” we can see 5 parameters:

    Min_Distance_to_TP – minimal value to Take Profit in points at which orders will be opened,
    MA_Period_for_Min_Distance – period of Moving Average for parameter below,
    Min_Distance_to_MA – minimal value to Moving Average from above in points at which orders will be opened,
    MA1 – period of first Moving Average – faster,
    MA2 – period of second Moving Average – slower.

The condition that must be met to open orders is parallel arrangement of price, MA1 and MA2.
For BUY orders price must be below faster MA1 and faster MA1 must be below slower MA2 (price < MA1 < MA2).
For SELL orders: price > MA1 > MA2.

Next block of parameters is called “Take Profit”. We have here 3 parameters:

    TP_Level – level of Take Profit specified in percent value (more accurate description below),
    Candles_To_Take_To_TP – number of candles to the left (in the past) to look for extreme to put Take Profit,
    TP_Distance_from_Extreme – distance in points from extreme value from above parameter.

Next block of parameters is called “Stop Loss”. We have here 4 parameters:

    Trailing_SL_in_MA – we can set True if we want to put automatic SL after crossing specified Moving Average by price,
    MA_Period_for_SL – period of Moving Average for use of parameter above,
    Candles_To_Take_To_SL – number of candles to the left (in the past) to look for extreme to put Stop Loss,
    SL_Distance_from_Extreme – distance in points from extreme value from above parameter.

First position of Take Profit and Stop Loss is calculated from 2 last parameters of 2 blocks from above (“Candles_To_Take_To_TP”, “TP_Distance_from_Extreme”, “Candles_To_Take_To_SL” and “SL_Distance_from_Extreme”). Parameter “TP_Level” determines distance in percents between SL and TP to put new TP. For example if we set TP_Level to 50 – Take Profit will be in the middle between TP and SL. If we set TP_Level to 61.8 we will have TP in Fibonacci retracement equal to 61.8% (where 0% is SL and 100% is TP). By setting the TP_Level to 100, TP will be in the first calculated extreme moved by specified number of point from parameter “TP_Distance_from_Extreme”.

Another block, which has new parameter, is “Pattern”. First parameter “Pattern_Version” can be set to 1, 2, 3 or 4 and these numbers determine the slightly modified another versions of Engulfing Pattern, which is used to opening orders. Another parameter “Close_Order_When_Opposite_Engulfing” determines if opened order should be closed if will occur Engulfing Pattern in opposite direction than direction of opened order.

All other parameters are understandable and I think that I don’t have to explain them.

Parameters for this EA for another currency pairs will be published consecutively in the relevant topics in this subforum.

As an example I will show results after optimization of EURUSD on H4 timeframe (2012-now):

And graph with profit:

Setting giving above results you can find here: https://theinvestbay.com/viewtopic.php?f=13&t=23

This version of EA will work to the end of September 2016.