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Stochastic Oscillator Rules and Risk Settings for an MT4 Expert Advisor

Article MQL5 code base
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Summary

This document describes an MT4 Expert Advisor that uses the Stochastic Oscillator to trade potential overbought and oversold reversals or momentum shifts. It lists default upper and lower thresholds of 80 and 20, with configurable %K, %D, and slowing inputs. The EA can require a Stochastic boundary cross and offers immediate or delayed signal confirmation. Trade controls include adjustable lot size and stop-loss and take-profit settings, each shown with a default of 100 pips.

The page identifies a backtest covering GBPUSD on a daily chart from January through September 2025, and reports a maximum of five consecutive losing trades. It provides no overall return, drawdown, trade count, benchmark, or test methodology, so the single loss-streak figure is not enough to judge performance. The description also does not fully specify entry, exit, or position-sizing logic, and the defaults should not be treated as evidence of suitable risk settings.

Key ideas

  • The EA uses Stochastic readings and boundary crosses to generate trade signals.
  • The default overbought and oversold thresholds are 80 and 20, and oscillator parameters are configurable.
  • Users can choose immediate or delayed signal confirmation.
  • The listed defaults include a 0.10 lot size and 100-pip stop loss and take profit.
  • The page reports five consecutive losses at most in a GBPUSD daily-chart backtest from January through September 2025, but omits broader performance statistics.

Tags

ForexTechnical indicatorsRisk managementBacktesting

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.