Moving Average Cross – All In One Indicator

Moving Average Cross – All In One Indicator

Recently I recorded an article reviewing a strategy called Tim’s Moving Average Cross.

In the video I showed results of backtesting of the strategy. Since then we have received some requests here at Orchard Forex asking if an EA was used for the backtesting and if the EA is available to download.

I did create an EA for the backtesting but it was only intended for backtesting and is not robust or well tested enough for use in live trading. It lacks many of the standard features like performance optimisation and handling situations where the server is unavailable or restarting Metatrader.

When I created the review I did use a custom indicator to help with visualising the strategy. I didn’t show the custom indicator in the earlier video but I can make it available for download and you can download it below.

Briefly, this is a single indicator to find and display entry points for the strategy. handling money and trade management later is not the role of the indicator.

To fully understand what the indicator is doing please visit the description of the original strategy.

The inputs to the indicator are:

Baseline bars and method: to calculate the 100 period simple moving average required in the strategy

Fast bars and method: to calculate the fast EMA used to identify the current trend direction

ATR Bars and channel multiplier to draw a 1 ATR(14) wide channel around the fast EMA. The strategy does not trade if a bar moves more than 1 ATR from the fast EMA and the channel is a good way to visualise this.

Volume average bars: to calculate the average volume per bar

Full and half trade percentages: based on tthe strategy a full lot is only traded if the volume is greater than or equal to 100% of the 20 period volume average. A half size trade is taken if the volume is between 75% and 100% and no trade if the volume is less than 75%.

Stop loss and take profit multipliers: the strategy sets take profit at 1 x ATR from the entry point and stop loss at 1.5 x ATR from the entry point. This is used to position horizontal lines on screen indicating the take profit and stop loss levels.

The indicator draws the slow moving average and fast moving average on chart, along with a channem formed by the ATR around the fast moving average. When conditions are met for a trade the indicator also draws horizontal lines beginning at the bar that triggered the entry condition. If the volume is only sufficient for a half size trade the lines are dotted, otherwise the lines are solid.

You can download the indicator using the links below

 

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