This tutorial shows how Commodity Channel Index Expert Advisor (EA) can be used on charts of MT4 to Trade in Index Options.
Strategy Premise
The Commodity Channel Index (CCI) measures the current price level relative to an average price level over a given period of time. CCI is relatively high when prices are far above their average. CCI is relatively low when prices are far below their average. Using this method, CCI can be used to identify overbought and oversold levels.
Button Functionality
When you click Buy button, it will send LE in Call and LX in Put. Sell button sends LE in Put and LX in Call.
For selecting ITM distance from current price. Example, say LTP = 11000,
Strike distance = 50; then CE strike =10950; PE strike= 11050
Strategy Logic
LE Rules: When CCI Value is Above Upper Limit
LX Rules: Exit happens with SE
SE Rules: When CCI Value is Below Lower Limit
SX Rules: Exit happens with LE
When CCI gives Buy, it will send LE in Call and LX in Put. When CCI gives Sell, it will send LE in Put and LX in Call.
Strike Distance: For selecting ITM distance from current price. Example, say LTP = 11000, Strike distance = 50; then CE strike =10950; PE strike= 11050
MT4 Settings
To start Algo trading with Commodity Channel Index 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 two sub-folders: Experts 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: For include files, In MT4 Click on File => Open Data Folder=> Click on MQL4 => Include folder. Copy-paste the downloaded file to the Include folder.
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 Commodity Channel Index Expert Advisor on chart
7: Change the Input Parameters as per your Requirement
8: Now put the Commodity Channel Index 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.
Here are the Strategy Parameters
| Strategy tag | Use default STG1 unless trading in multiple strategies |
| Port | This should be same as API bridge port application will signal from same port |
| Base symbol | Put the base symbol example “BANKNIFTY” here in which you want to place an order |
| Expiry | Put contract expiry here |
| Order type | Select order type here from MARKET,LIMIT, SLL,SLM |
| Instrument | OPTIDX |
| Candle Period | Candle Period for CCI Value |
| Lower Limit | Value of CCI at which Buy Signal is generated |
| Upper Limit | Value of CCI at which Sell Signal is generated |
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