Advisor Takeover

I think every trader sooner or later begins to strive for such a professional level of trading, at which there is no need to use indicators to make profitable transactions.

Yes, namely, trade without indicators, but only analyze the price. To help with such intentions, there is a book on Japanese candlesticks, which contains various candlestick patterns that can indicate a trend reversal.

Japanese candlesticks can tell you a lot and one of the most popular patterns that traders use is engulfing. The essence of this pattern is that if a new candle has formed in such a size that it is capable of absorbing the previous candle along with its shadows, then a new trend has begun to form in the market.

It was the Absorption pattern that formed the basis for the development of the trading expert. It was developed by a Russian trader, and the name of the advisor naturally corresponds to the pattern, the algorithm of which is the basis. It is better to analyze Japanese candlesticks on higher time frames, so it is recommended to use the expert on hourly and higher charts.

The currency pair can be any, but, according to the author, the pattern produces optimal results on the pound/dollar currency pair.

Before starting work, the expert should be installed in the Meta Trader 4 trading terminal. To do this, download the archive with the advisor inside and place the file in the expert folder through the data directory of your trading terminal. After restarting the terminal, the instrument should appear in the list of advisors, so to get started, simply move the expert to the chart of the pound/dollar currency pair. A settings window should appear in front of you, which you will read below:

 The author of the expert did not add a bunch of features to his creation, so the set of settings is as simple as the expert itself.

In the tf line you can change the time frame in minutes on the basis of which the pattern is calculated. In the Lot line, you can specify the lot that the expert will trade.

In the sl line you can change the size of the stop order, and in the tp line the size of the take profit.

In the pts line you can set the absorption size in points, then if the new order is three points larger than the previous one, this is an absorption model. The Expert Advisor accompanies a stop order based on the Moving Average , the period of which you can change in the per settings line.

The author of the expert also decided to attach a martingale to the advisor, which you can either turn on or off in the martin line. In general, these are all the settings that the author made. Almost all parameters can be optimized, especially Sl, tp, pts.

The expert decided to conduct the first test on the pound/dollar currency pair on the hourly time frame. The expert testing period is from January 1, 2015 to July 1, 2015. I left all the settings at default, and you can see the test result in the picture below:

I decided to conduct the second test on the same currency pair, but at the same time included martingale . The test result is shown in the picture below:

Based on the test results, we can conclude that the expert is profitable, and the absorption pattern is still relevant today. This Expert Advisor will be a godsend for those who are hunting for Expert Advisors based on Japanese candlesticks. I think that the expert deserves attention, so I can recommend it to you for testing on a cent account with brokers InstaForex or Amarkets .

Thanks for your attention, good luck! Download the "Absorption" advisor.