No.36: Oscillators - One oscillator line used as signal
Description
You can find an example for the Expert Advisor Builder on this page. If you need to familiarize yourself with the MetaTrader strategy tester and the Expert Advisor Builder, please begin with the Getting Started article.
This example demonstrates the process of generating signals using oscillators. Oscillators are widely used tools that simplify a price chart, making the information more understandable for human interpretation or automated processing. Unlike indicators, an oscillator typically swings around a specific value, while indicator values are mainly on a similar level as the price. This characteristic makes oscillators very useful as a tool for simplification, which is symbol-independent.
This article uses a Relative Strength Index (RSI) oscillator for signal generation. A signal is generated whenever the RSI value rises and crosses the value of 30. This leads to placing a long order with an enabled average true range stop loss trailing and a risk ratio-based (1.4) take profit. As is common with many examples for the Expert Advisor Builder, only one trade can be open at a time. This implies that some signals may be overlooked.
Please note that this is not a plug-and-play trading strategy. A trading strategy needs suitable adjustments, fine-tuning to the timeframe and symbol, and thorough backward and forward testing. Therefore, providing fully working trading strategies as read-to-use examples is impossible. However, this example could serve as a foundation for your trading strategy.
Reset of inputs
Locate the Expert Advisor Builder application in the dropdown menu of the strategy tester settings under FEA Trading\MT4\Expert Advisor Builder 2.0 if you're using a MetaTrader 4 instance or FEA Trading\MT5\Expert Advisor Builder 2.0 if you're using a MetaTrader 5 instance. You can replicate the entire example in minutes by following the steps outlined in this article. To begin, kindly reset the strategy tester input as indicated.
The default input parameters of the Expert Advisor Builder are designed to be highly functional. This implies that only some parameters must be adjusted when creating a new strategy. As a result, even with minimal reconfiguration, the output strategy can be significantly different.
Inputs configuration
Most examples can be executed in any timeframe and on any symbol. However, please set EURUSD as the symbol to be tested, M15 as the timeframe, select Open prices only (MT4) or 1 minute OHLC (MT5) as the model, and the previous four weeks as the test period. Finally, enable the visual testing mode.
Refer to the table below to set up the input parameters for the Expert Advisor Builder.
| Input variable within MetaTrader (Identifier in SET file) | Example value | User manual chapters |
|---|---|---|
| > (OUF) Idea output description (max 63 characters) (IN_strOufIdeaOutputDescription) | No.36: Oscillators - One oscillator line used as signal | Output Folder |
| > (OSA1) CONF, Signal in use (IN_enmOsa1SignalInUse) | ON | Configuration Available Oscillators and Default Values Example |
| > (OSA1) CONF, Selection (IN_enmOsa1Selection) | RSI - Relative Strength Index | |
| > (OSA1) COND, Value limit condition (IN_enmOsa1ValueCondition) | CROSS LIMIT 1 | |
| > (OSA1) COND, Value limit 1 (IN_dOsa1ValueLimit1) | 30.0 |
Confirm the inputs by pressing OK, and finally, start the test run with Start.
Chart example and SET file download
The underlying algorithm is highly optimized for execution speed. Generally, it only takes a few minutes until the entire test period is simulated. At the end, you will see a chart similar to the following.
To reproduce the chart from this example, you can download and use the SET file package eab_example_36_v_2_0.set.