Good Day
I have been cheating on PRT with MetaTrader lately and spent a decent amount of time playing around with some of the indicators in their CodeBase.
I have used the time to develop an extremely robust trend following strategy based on some of these indicators that allows one to get onboard strong trends while filtering out potentially weak ones. Risk is also managed exceptionally well while at the same time optimizing take profit levels.
The indicators I am using is as follow:
1. Ichimoku Cloud with Kijun-Sen and Tenkan-Sen
2. Elder Auto Envelopes (https://www.mql5.com/en/code/16807)
3. Ehlers Inverse Fisher Transform (https://www.mql5.com/en/code/16777)
4. Ehlers Inverse Fisher Transform of RSI (https://www.mql5.com/en/code/16963)
5. Ehlers Fractal Dimensions (https://www.mql5.com/en/code/20580)
If some of my experienced fellow forum members are willing to translate these indicators, I will, in turn, code them into a very robust automated strategy using the rules I have established.
The rules of the strategy are rather complex, but in a nutshell, it comes down to the following:
- Only take trades in the direction of the color of the Elder Ribbon
- Validate the strength of the Elder Ribbon using the Ehlers Inverse Fisher Transform
- Check trend momentum using Ehlers Inverse Fisher Transform of RSI (has some rules of it’s own)
- Check trend strength using Ehlers Fractal Dimension (conditional rules apply)
- If we are below the cloud (and also above Tenkan-Sen and Kijun-Sen) and conditions 1-4 are validated take a long position and use a close below Tenkan-Sen as a stop (up until rule 6 becomes valid). The opposite would apply for short positions
- If we are in or above the cloud (and also above Tenkan-Sen and Kijun-Sen) and conditions 1-4 are validated take a long position as soon as we have a close below Tenkan-Sen (if rule 1-2 is still valid and Kijun-Sen is at least a couple of points below us). After a pullback to below Tenkan-Sen, rule 1 can be overruled by a strong rejection from either the Elder Ribbon or Kijun-Sen. The opposite would apply for short positions
- If we are in a long position and we have close below Kijun-Sen and Ehlers Inverse Fisher Transform is red, exit the trade and wait for re-confirmation of rule 6. The opposite would apply for short positions
- If in a long position, remain in the position as long as the Elder ribbon remains blue and the Ehlers Inverse Fisher Transform of RSI is not green. If the Ehlers Inverse Fisher Transform of RSI turns green and the Ehlers Inverse Fisher Transform turns red, then exit at the first close below Tenkan-Sen. The opposite would apply for short positions
- Additional rules apply when certain price action occurs at the 200MA
- Certain discretions can be used during a strong trend if price movement is particularly volatile
I have attached a picture of how the setup looks in MetaTrader.
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