Averaging Advisor

A trader's profitability directly depends on their capital management model in Forex. However, using systems that minimize risk isn't always justified, as potential profitability typically also decreases significantly.

At the same time, aggressive money management models like averaging and martingale can make virtually any trading strategy temporarily profitable.

Unfortunately, however, aggressive models can only be used for short periods of time to achieve tangible goals due to the high risk in the long term.

You'll learn about one such Forex expert advisor based on averaging in this article.

EA RSI Averange is an averaging expert advisor based on the well-known standard oscillator known as the relative strength index. The robot is essentially a scalping approach to trading using overbought and oversold market zones, but without stop orders.

With properly optimized settings, this averaging expert advisor is effective on any currency pair, making it a truly multi-currency expert advisor.

It is also worth noting that the robot can be adapted to almost any forex time frame, and the lower time frame, the more trades he will open.

Thus, the averaging advisor can be used as a scalper or even a pipsing robot, or as a medium-term trading robot.

Installing the robot in the MT4 trading terminal

Averaging-based Expert Advisors (EAs) often appear regularly, but in most cases, accessing them requires either a payment or meeting certain conditions.

In our case, the EA RSI Averange averaging EA was released quite recently, specifically in 2018, and was published by its author in the official MT4 developer library.

Therefore, not only is it free, but it can be installed in two ways. The first installation method is through your trading platform, without any additional downloads.

Specifically, after launching MT4, go to the "Terminal" panel at the very bottom of the interface, then open the "Library" tab.

Once in the library tab, be sure to perform a simple sort to display only EAs. In the resulting list, find the EA RSI Averange averaging EA and download it as shown in the image below:

 If installing via the library causes any difficulties, you can use the standard installation method.

To do this, scroll to the bottom of the article and download the EA file, then place it in the appropriate folder in the terminal data directory, specifically the "Experts" folder.

Regardless of the installation method, restart the trading terminal or refresh it in the navigator panel, otherwise the EA RSI Averange will not appear in the list of EAs. To start trading, drag the EA name onto the currency pair chart.

Averaging Expert Advisor Strategy Settings

As you may have noticed, the key foundation of this expert advisor is not the strategy itself, but the chosen money management model—averaging. However, the robot uses the RSI indicator .

So, if the robot enters the RSI overbought zone, the EA opens a sell position, and if it enters the oversold zone, it opens a buy position.

The EA doesn't place a stop order, but instead averages out losses by placing additional orders with increased volumes, continuing this process until the price reverses and the total number of trades results in a profit.

So, in the timeframe_RSI variable, you can change the time frame from which the RSI will analyze the price.

The period_RSI variable is responsible for the indicator's calculation period, and in the level_buy and level_sell variables, you can change the overbought and oversold levels.

In the MinStep variable, you can specify the distance between averaging orders in points, and the K_Lot variable sets the martingale multiplication factor. In the Lot variable, you can specify the volume of the initial averaging trade, and in the Takeprofit variable, the profit size.
Testing

The default settings in the EA RSI Averange are for informational purposes only; traders should test them independently on history and optimize for a specific currency pair or time frame.

Nevertheless, we decided to conduct a simple test with the default parameters on the GBP/USD currency pair for the first half of 2018 on a five-minute time frame. The preliminary test results are as follows:

In conclusion, it's worth noting that averaging advisors are extremely aggressive robots, but they only become so during large, protracted trends and with a small deposit.

For safe trading, your account should have at least $100 on a cent account or $10,000 on a classic account.

Download EA RSI Averange

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