1. Overview
If you’re looking for a robust trading tool, the Mean Reversion Trend EA is a solid choice. This expert advisor combines the best of both worlds: trend following and mean reversion strategies. It utilizes Moving Averages and ATR-based volatility measurements, along with a built-in trade validation system to ensure reliable execution in various market conditions.
2. Key Features
- Dual Strategy: Merges trend following (MA crossovers) and mean reversion (price-to-MA deviations).
- Adaptive Signals: Leverages fast and slow moving averages to identify trends effectively.
- Volatility Integration: Uses ATR to gauge market volatility for mean reversion entries.
- Built-in Validator: A comprehensive trade validation system that checks volume, margin, and stop levels.
- Safety Mechanism: Incorporates safety trade functionalities for backtest validation.
- Defensive Position Management: Offers fixed or proportional SL/TP with appropriate validation.
- Multi-Asset Compatible: Works seamlessly with forex, commodities, indices, and stocks while ensuring proper lot sizing.
3. How It Works
- Monitors moving average crosses to detect changes in trend direction.
- Measures price deviations from the slow MA using ATR-based volatility bands.
- Generates buy signals when the fast MA crosses above the slow MA or when the price dips below the volatility band.
- Issues sell signals when the fast MA crosses below the slow MA or when the price rises above the volatility band.
- Validates and executes trades while adhering to risk management parameters.
4. Inputs
- Fast_MA_Period (20), Slow_MA_Period (50), ATR_Period (14)
- ATR_Multiplier (2.0) for calculating mean reversion bands
- LotSize (0.1) for effective position sizing
- SL_Points (500), TP_Points (1000) for managing risk
- Magic_Number (123456) for easy order identification
5. Usage Notes
- Ideal for all major currency pairs and other liquid instruments.
- Compatible with all timeframes, though H1-H4 is recommended for better signal quality.
- Ensure you have sufficient historical data for accurate indicator calculations.
- Best suited for trending markets that also present occasional reversion opportunities.
- The robust validation system guarantees reliable execution across different brokers.
6. Code Structure
- CTradeValidator: A comprehensive class for trade validation.
- Functions for initializing indicators and processing data.
- Signal generation that fuses trend and reversion logic.
- Trade execution that adheres to validation and risk management protocols.
- Safety mechanisms to ensure backtesting integrity.
7. Disclaimer
This information is provided as-is for educational purposes. Remember, past performance isn’t indicative of future results. Always test extensively on demo accounts before diving into live trading.
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