UpTrend

UpTrend

This MQL expert advisor works only in up trend and for input position and output from trade is used combination of moving averages. For confirmation is evaluated parabolic SAR.

- Trend is our friend:

Trend trading is a simple way to cover up strategy imperfections by identifying the strongest trends in the market. Traders have two things going for them that they can use to grow their trading accounts, both of which can be easily identified by using freely available price charts. The first factor is the trend: locate currency pairs or other instruments that are trending, and trade only those pairs/instruments, in the same direction as the trend. The second factor is picking good trade entry points within those trends.

- How to find trend:

You can find all kinds of complicated indicators to tell you, when there is a trend. These indicators are usually based around moving averages or similar indicators. Determined the trend is very easy. Just ask your self - is this currency pair / instrument Higher than it was, or Lower than it was? That is all you need.If it is trading higher, there is an upwards trend, and you should look for long trades. If it is trading lower, then there is a downwards trend, and you should look for short trades.

The easist way to find trend on every chart you pick, is to use moving averages. Many other technical indicators are based on moving averages, so why do not use the base indicatod.

- Moving average

A moving average confirms a up trend if the price crosses above the moving average and the moving average changes its slope. And a moving average confirms a down trend if the price crosses below the moving average and the moving average changes its slope. It is important to remember, that moving averages are lagging indicators, which means, that it takes some time until moving average finally /confirm/i,  that a trend reversal has happened.

There is more type of moving averages - simple moving average, exponential moving average and for example weighted moving average. The different between these moving averages is the weight of the current value.

- Parabolic SAR

The parabolic SAR is trend folling indicator that is used to find potential reversals in the market price direction. It may be used as trailling stop loss. On a chart the indicator appears as a series of dots placed either above or below the price bars. A dot below the price is deemed to be a bullish signal. Conversely, a dot above the price is used to illustrate that the bears are in control and that the momentum is likely to remain downward. When the dots flip, it indicates that a potential change in price direction is udner way. As the price of a stock rises, the dots will rise as well, first slowly and then picking up speed and accelerating with the trend. The parabolic SAR starts to move a little faster as the trend develops and the dots soon catch up to the price. The parabolic SAR gives many fault signals. That is the main reason, why it is better to use parabolic SAR with another indicator.

- MQL expert advisor description

Two moving averages with assistance of the price action are used to determine the up trend, which we want to trade. The input of the trade is confirmed with parabolic SAR. The parabolic SAR is at the same time used as a value for the trailling stop loss. Using high moving average period  gives us the opportunity to stay inside of the major trend direction.

- One of the optimized parameters

currency pair: EUR/USD

trade period: H1

fast moving average period: 100

slow moving average period: 150

parabolic SAR maximum: 0.2

parabolic SAR step: 0.0015