Proposal for an Expert Advisor in mt4

Name:  AUBE 5


Principles

The system uses essentially two indicators for trade entry – a slow and a fast MACD.  It (optionally) uses the chandelier stop loss to manage exits.


System Components

The system entry uses 2 indicators
MACD slow.  The indicator I use is called "MACD 3 Col"
MACD fast.  The indicator I use is called "MACD Trend Change"
Chandelier for entry qualification and for the stop loss. The indicator I use is called "Chandelier Exit"


Screen shots of how it looks are attached separately.


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



“Decision Tree”

BUY TRADE:

When not already in a trade, at the end of each candle, the EA should follow the following logic routine:

1. Are the slow MACD histograms rising (ie coloured purple)?  If YES,
2. Has the fast MACD changed from red to purple (in other words, has the MACD histogram crossed up through its signal line)?  If YES,
3. Is the absolute value of the fast MACD above zero (in other words, is it above the dotted zero line on the indicator)?  If YES,
4. Is the price above the value of the chandelier? If YES, then
5. That is a valid BUY signal.

If conditions 1, 2 and 4 are met, but not condition 3, then wait until 3 is also met, even if it is not on the same candle. 
What this means is that if conditions 1, 2 and 4 are met, then the last condition to be met  
is that the absolute value of the fast MACD must be above zero, even if the cross of its signal line took place in a previous candle.

In other words, to be a valid buy trade, the slow MACD must be purple (rising) – irrespective of whether its value is above or below zero, 
AND the fast MACD histograms must be above their signal line, AND the fast MACD must be above zero AND the price must be above the chandelier.

The best indicator to use for the fast MACD is called “MACD Trend Change”.  
It automatically changes colour when the histogram crosses through the signal line.

The best indicator to use for the slow MACD is the “MACD 3 Col” because rising histograms are always purple and falling histograms 
are always red.


SELL TRADE:
The opposite of a 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 5 pips below the Chandelier value (for a buy) or 5 pips above the Chadelier value for a sell.
After the first candle in the trade, the absolute vale of the Chandelier should be used.
2. Once the trade is open, the EA stays in the trade whilst the price stays above the chandelier stop value (for a buy) 
or below the value of the chandelier (for a sell).
3. Trade exit only happens when:
- The price CLOSES below the Chandelier (for a buy trade) or above the chandelier (for a sell trade) at the end of the candle, 
if the Chandelier is being used as a stop loss - see below.   The price may cross the chandelier value during the candle, with 
the trade remaining open if the prices closes back below the Chandelier.
- or if the user closes the trade manually


Re-entry

If a trade (say a sell) is closed because the chandelier is hit and then the chandelier switches back, and the MACD remains a sell signal, 
then re-enter a new sell trade.  And vice versa for buy trades.



EA settings

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

Fast EMA settings 5, 11, 9

Slow EMA settings 55, 144, 1

Chandelier settings: Range 7, shift 0, ATR period 9, ATR mult 2.5.


TRADE 1

The main managed trade as described in detail above.

Lot size:  User set only:  default 0.01


Use EA to open trade?

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



TRADE 2

“Scalp trade”

Lot size:  User set only:  default   0.02

Trade 2 Take Profit default 7 pips


Show Alert on screen? True/False  Default TRUE

Send Alert by email? True/False  Default  FALSE


Magic number

Max. slippage 3 pips


Start time  If 0, it trades 24/5.  Default 0
 
Stop time


Use Chandelier Trailing stop (as a stop loss)?  Default  TRUE