Kilimanjaro EA MT4

Kilimanjaro EA

• Timeframe: H1
• Low risk trading
• no martingale, no grid, no averaging
• Monte Carlo Stress tested
• Portfolio tested
• Correlation Analysis tested

Advanced Forex Trading Algorithm Using AO, MFI, ADX, and Price Action Patterns

This advanced Forex trading algorithm leverages a combination of technical indicators and price action patterns to evaluate market conditions and execute trades. The core components of the algorithm are the Awesome Oscillator (AO), Money Flow Index (MFI), Average Directional Index (ADX), and specific price action patterns.

1. Awesome Oscillator (AO):
   • The AO measures market momentum by comparing the 34-period and 5-period simple moving averages (SMA). The algorithm uses AO to identify the strength and direction of the market trend. A positive AO value indicates bullish momentum, while a negative value suggests bearish momentum.
2. Money Flow Index (MFI):
   • The MFI combines price and volume data to identify overbought or oversold conditions. It ranges from 0 to 100, with values above 80 indicating overbought conditions and below 20 indicating oversold conditions. The algorithm uses MFI to confirm potential reversal points in conjunction with other indicators.
3. Average Directional Index (ADX):
   • The ADX measures the strength of a trend, regardless of its direction. It ranges from 0 to 100, with readings above 25 indicating a strong trend. The algorithm uses ADX to filter trades, ensuring that trades are taken only in markets with sufficient trend strength.
4. Price Action Patterns:
   • The algorithm incorporates specific price action patterns such as pin bars, engulfing patterns, and inside bars to fine-tune entry and exit points. These patterns provide additional context to the market sentiment and potential reversals.

Trading Strategy

1. Market Evaluation:
   • The algorithm scans the market using AO, MFI, and ADX to identify potential trading opportunities.
   • AO is used to determine the overall market momentum.
   • MFI is used to identify overbought or oversold conditions.
   • ADX is used to confirm the presence of a strong trend.
2. Trade Confirmation:
   • The algorithm waits for price action patterns to form in alignment with the signals from the AO, MFI, and ADX.
   • For a buy signal: AO should be positive, MFI should be below 20 (indicating oversold), and ADX should be above 25 (indicating a strong trend). Additionally, a bullish price action pattern should be present.
   • For a sell signal: AO should be negative, MFI should be above 80 (indicating overbought), and ADX should be above 25. Additionally, a bearish price action pattern should be present.
3. Trade Execution:
   • Once all conditions are met, the algorithm executes the trade with predefined stop-loss and take-profit levels to manage risk and secure profits.
   • The stop-loss is typically placed just below the recent swing low for buy trades or above the recent swing high for sell trades.
   • The take-profit levels are determined based on a risk-reward ratio, ensuring that the potential reward justifies the risk taken.

By combining the AO, MFI, ADX, and price action patterns, this algorithm aims to improve the accuracy of trade entries and exits, thereby enhancing overall trading performance.