Proposal for an Expert Advisor in mt4
Name:  AUBE

Principles

The system uses essentially only one indicator – MACD.  It is based on the principle that a cross UP by the histogram over the signal line is a buy signal that works best when the signal line itself is already above zero.  And the opposite for sell trades.


System Components

The system entry uses 2 indicators
MACD trend change indicator
A pair of EMAs (with the gap shaded)


How it looks on screen:



All measures from the indicators are to be taken on the close of a bar, not during a bar's development.



“Decision Tree”

BUY TRADE:

Enter a buy trade when the MACD histogram crosses up through the MACD signal line whilst the signal line is above zero, or when the MACD trend change indicator turns blue whilst above zero.

SELL TRADE:

(Essentially the opposite of the BUY trade)



The EA must have the option to open a trade when signal criteria are met OR to display Alerts on screen or via email so that the user can decide whether to execute the trade.  If the user executes the trade manually, the EA must still manage the trade through to exit.


Second Trade

The EA will have an option for a second trade to be opened at the same time as the main trade. The second trade will be a “scalp” trade with a short TP target.


Trade Management

1. Once the trade is opened, there will be an option for an automated initial Stop Loss to be set. The value of the stop loss should be a fixed number of pips above the highest point of the last 3 candles (for a sell) and a fixed number of pips below the lowest point of the last 3 candles (for a buy).
2. Once the trade is open, the EA stays in the trade whilst the fast EMA stays above the slower EMA (for a BUY, and vice versa for a sell). The EA must ignore any further changes in colour of either of the MACD histograms. 
3. Trade exit only happens when:
The initial stop loss is hit
The EMAs cross over and change colour at the end of a bar
The user closes the trade manually


Re-entry

If a trade (say a sell) is closed because the EMAs cross up and then the EMAs cross back to red, and the MACD remains a sell signal, then re-enter a new trade.

EA settings

The EA should contain the following settings that can be changed by the user:

Name
Description
Comment
Default setting
Fast EMA


8
Slow EMA


13
MACD
Fast EMA

12

Slow EMA

26

Signal

9




EMAs
Fast EMA

8

Slow EMA

13




TRADE 1



Lot size

User set only
0.01
Use EA to open trade?

If False, the EA will just produce an Alert and/or send an email – see below
FALSE
TRADE 2



Lot size

User set only
0.02
Use EA to open trade?

If False, the EA will just produce an Alert and/or send an email – see below
FALSE
Trade 2 TP
pips
Take Profit at...
7




Show Alert on screen?
True/False

TRUE
Send Alert by email?
True/False

TRUE
Magic number

(I suppose we need one?)

Max. slippage

In pips
3




Use Initial Stop Loss?


No
Initial Stop Loss
Pips
Distance below lowest point (for a buy) of the last 3 bars, in pips, or distance above highest point (for a sell) of the last 3 bars, in pips.
5
Start time
If 0, it trades 24/5
Allows the user to manage the times the EA will open a trade
0
Stop time

Allows the user to manage the times the EA will stop looking for trades
0

Whether we have a trailing stop function remains to be seen – they are notoriously difficult to automate effectively!  One consideration is a Chandelier Stop.


Trade Examples:

































































































































































I think you get the idea.....