REGISTER PARTICIPANTS Expert Moving Average Envelope Tfmt4 Mt4

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The Moving Average Envelope system has an entry based on the
price breaking out of an upper or lower envelope created by a percentage of a
simple moving average. As the price
breaks out of the envelope, this EA opens a new position to catch a trend if
the price continues to move. The SMA in
the middle of the envelopes is used as a trailing exit when the price reaches
it. Note that the envelopes must be set for each
timeframe and symbol as they are not dynamic to set the correct envelope range
around the price. Use our free You are not allowed to view links. Register or Login">Moving
Average Envelope indicator< on your chart to find the appropriate percentage for
your chart.

Note: The default input values are not
optimized. Demo the EA and adjust the
inputs to find the optimized combination for your risk tolerance and to
maximize profitability. Trend Following
systems are designed around long term probabilities. Although Trend Following systems have lower
win rates, profitability comes from large trends as Trend Following cuts losses
short and lets winners run. Test on a
portfolio of symbols as profits from trending symbols will offset the small
losses and provide profits when other symbols are not trending.

Entries and Pyramiding:

Entries occur when the price exceeds the upper or lower
envelopes. The EA adds the position as
soon as the price goes above the upper envelope or below the lower envelope and
does not wait until the following bar. If
you set the Max_Units input above 1, additional entries will occur and pyramid
in ATR increments specified by the ATR_between_Pyramids input.

Exits:

Exits are trailing with the simple moving average in the
middle of the Moving Average Envelopes. For long positions, the EA exits when
the price reaches or goes below the moving average. For short positions, the EA
exits when the price reaches or goes above the moving average.

Position Sizing and
Stops:

This EA calculates the position sizing using the Percent
Volatility method which is directly tied to the stop. The stop uses the ATR_Periods and Stop_Range_ATR
inputs to calculate the ATR and then multiply the two values to set the stop
distance from the entry price. Stops are
not coded into the position but this EA closes out the position if the price
reaches the stop value. As additional
units are added through pyramiding, the stop moves to correspond to the latest
entry price. Using the stop value, the
Risk_Percent input, and your account information (tick size, lot size, digits,
etc.), the position sizing uses the monetary value of the distance from entry
to stop and keeps the number of lots limited to the percentage you
specify.

Inputs:

• MA_Periods: The number of bars
  used to create the simple moving average in the middle of the envelopes.
• Envelope_Percent: The percentage
  of the moving average to add to the moving average to create the upper and
  lower moving average envelopes/bands.
• Risk_Percent: The percent risked
  per position if the price reaches the stop. Example: If you want 2% of your
  equity to be risked per position, enter 2 to this input.
• ATR_Periods: The number of bars
  to use in the ATR calculation.
• Stop_Range_ATR: This value will
  be multiplied by the ATR to determine where the stop will be from the entry
  price. Example: If you want your stop to
  be set at 2* ATR from the price, enter 2 to this input.
• Max_Units: The maximum number of
  entries (including the initial entry) as the position gains profits and the EA
  adds pyramid positions.
• ATR_between_Pyramids: This value
  will be multiplied by the ATR to use for calculating when to add the next
  position through pyramiding. Example: Set this to 1.5 and the next pyramid
  position would be added when the price reaches your entry plus ( 1.5 * ATR )
  for long positions or entry minus ( 1.5 * ATR ) for short positions.
• Slippage: Amount of allowable
  slippage when entering position.
• Reduction_Percent: Enter an
  amount by which to reduce your equity for the position sizing calculation.
  Example: If you are in a drawdown period you can enter 20 to this input and the
  position size will be 20% less than without the reduction. The position sizing calculation
  would treat your equity as 80% of what it really is to lower your risk until
  the drawdown is over.