This Expert-Advisor combines the strengths of linear and polynomial regression analysis. Both models assume that the market has a fair price and that the market price moves towards it within the entered period. The respective results may confirm or cancel each other. This Expert Advisor considers two trading options: 1) To follow the current trend. 2) To trade a correction or an expected market reversal.
General
Parameters
- Period: The number of values (e.g. bars) to be used to determine the fair price, the fair slope and its standard deviations.
- Reversal width: Multiplier for the width of the bands of the standard deviation, which should be taken into account for the evaluation of a reversal or correction.
- Trend width: Multiplier for the width of the bands of the standard deviation, which are to be taken into account when assessing a trend.
- Slope width: Multiplier for the width of the bands of the standard deviation, which are to be considered with the evaluation of the significance of a trend.
- Strength: The Strength parameters can have the values None, Any, Linear, Exponential and Complete. They indicate whether the respective trading opportunity should not wait for a strong signal, for any strong signal, for a strong linear signal, for a strong polynomial signal or for both strong signals.
- Accuracy: The Accuracy parameters can also have the values None, Any, Linear, Exponential and Complete. They indicate whether the pattern of the signal must not be kept or whether the linear pattern, the polynomial pattern or both patterns must be kept.
- Risk (%): The maximum risk with which a position may be opened.
- Factor: The factor parameters specify the factor by which the lot size is to be multiplied. For example, a factor of 0 for LongTrendFactor means that long trends are not traded. A factor of 0.5 means that they are traded with half the lot size.
- Max Slippage: The maximum slippage with respect to the respective desired trade value, which should be allowed for the orders sent. (Not every broker will consider this value).
- ATR-SL Multiplier: Specifies the amount of the stop loss measured against the Average True Range.
- Strategy-ID: The unique identifier of the strategy, which is needed to identify open positions of the EA after a system crash.
ExplanationThe price trend of the market depends on the microeconomics in short periods of time and on the macroeconomics of the exchange in long periods of time. Stable trends are more likely to occur in the macroeconomy time frame, as it depends largely on the public economy, which does not change seriously every second or minute. Since this EA needs stable movements to work cleanly, the combination of the Period parameter and the time base of the chart on which the EA is running should be chosen so that the resulting time period does not belong to the microeconomy of the market.
Since the market situation will change over time, it is necessary to adjust the parameters of the EA from time to time. Therefore I recommend to recalibrate the parameters of the EA every week or at least every month based on a complete optimization over the last months.
