Trading Indicator Color Changes with an Extrem_N Expert Advisor

Summary

The document outlines an Expert Advisor that trades signals from the Extrem_N indicator. A signal occurs at a bar’s close when one colored line appears after the other color’s line disappears; the direction depends on which color replaces which. The system therefore relies on changes in the indicator’s displayed state rather than a separately described price or fundamental filter.

The document reports that tests used the Expert Advisor’s default inputs on EUR/USD at a six-hour timeframe during 2015. It states that stop loss and take profit were not used in those tests, but gives no numerical performance statistics or enough detail to assess robustness, costs, or risk. Operation also depends on installing the compiled indicator file, and a library is mentioned for handling brokers with nonzero spreads and order-opening stop settings.

Key ideas

• The Expert Advisor generates signals when the Extrem_N indicator changes from one colored line to the other.
• Signals are evaluated at the close of a bar.
• The reported test used EUR/USD six-hour bars in 2015 with default inputs.
• The test omitted stop-loss and take-profit settings, and the document gives no quantitative performance measures.

Tags

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