Envelope Strategy for MT4

This tutorial shows how Envelope Expert Advisor can be used on charts of MT4 to Trade

Strategy Premise

Envelopes are technical indicators that are typically plotted over a price chart with upper and lower bounds. The most common example of an envelope is a moving average envelope, which is created using two moving averages that define upper and lower price range levels

Strategy Logic

Long Entry: When the Current Candle Closes Above Upper Envelope Band

Long Exit: Exit happens with Short Entry

Short Entry: When the Current Candle Closes Below Lower Envelope Band

Short Exit: Exit happens with Long Entry

MT4 Settings

To start Algo trading with Envelope on MT4, simply follow the steps given below. 

1. Make sure you have completed Jump Start setup
2. Download zipped files from here and extract them. You will find three sub-folders: Experts, Indicators and Include. The files in these sub-folders should be copied in your MT4 directory in the same folders. In MT4 Click on File => Open Data Folder=> Click on MQL4 => Experts folder. Copy-paste the downloaded file to the Expert folder.
3. (Optional, if indicator nor present in your MT4) In MT4 Click on File => Open Data Folder=> Click on MQL4 => Indicator folder. Download the Indicator file from here and copy-paste in your Indicator folder. Also paste files to your Include folder if not already present.
4. In MT4 => Tools => Expert Advisor => Check all option available as shown below.

5. Go to navigator click on refresh to refresh indicator and expert advisor.

6. Now put Envelope Expert Advisor on chart 

7. Change the Input Parameters as per your Requirement 

8. Now put the Envelope Indicator on the chart and Change the Parameter as per the Inputs Set in EA. 

Please note that the input parameters of EA and the indicator should be the same, or the signal generation will not match with the indicator.

Strategy Parameters

Strategy tag – use default STG1 unless trading in multiple strategies

Quantity- You Can also specify Qty in Bridge->Symbol Settings, it will override the Qty given here

Instrument – Set the instrument as per APIBridge

Magic Number- Leave at Default Value (1234567)

Slippage- Set Slippage value or Leave at Default

Volume- Lot Size

Period- Period of Envelope

Shift- Shift in Envelope

Deviation- Distance change between Upper and Lower Envelope in Percentage