This tutorial shows how MACD+RSI Expert Advisor (EA) can be used on charts of MT4 to Trade in Index Options.
Strategy Premise
MACD
Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA.
RSI
The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator and can have a reading from 0 to 100.
Strategy Logic
Long Entry: When MACD is above 0 and RSI is above 50
Short Entry: When MACD is Below 0 and RSI is Below 50
When Strategy gives buy, it will send LE in Call and LX in Put. When Strategy gives sell, it will send LE in Put and LX in
MT4 Settings
To start Algo trading with MACD+RSI 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 MACD+RSI Expert Advisor on chart .
7: Change the Input Parameters as per your Requirement
8: Now put the MACD and RSI 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 |
| Fast EMA Period | Fast EMA Period for MACD |
| Slow EMA Period | Slow EMA Period for MACD |
| MACD SMA Period | SMA Period for MACD |
| RSI Overbought Level | Overbought Level for RSI |
| RSI Oversold Level | Oversold Level for RSI |
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