Divergence Trader

Author: Ron Thompson
Profit factor:
0.86

Here's a breakdown of what this MetaTrader script does, explained in a way that avoids technical jargon and focuses on the core logic:

Overall Purpose:

This script is designed to automatically trade on the EURUSD currency pair in the Forex market. It aims to identify potential buying or selling opportunities based on a "divergence" indicator and then execute trades according to pre-set rules.

Key Components and How They Work:

  1. User Settings (External Inputs):

    • Lots: The amount of currency to trade in each transaction. Think of it as the size of your bet.
    • Slippage: How much price change you'll tolerate between when you decide to trade and when the trade actually happens. It's a buffer to ensure your trade goes through even if the price moves slightly.
    • Fast_Period, Fast_Price, Slow_Period, Slow_Price: These settings control how the "divergence" indicator is calculated. They define the time periods and price data (e.g., opening price of a candle) used in the calculation.
    • DVBuySell, DVStayOut: These are threshold values that determine when a "divergence" signal is strong enough to trigger a buy or sell order. DVStayOut adds a limit to that divergence.
    • ProfitMade, LossLimit: These set the target profit and maximum loss for each trade, acting as automatic exit points.
    • TrailStop: This sets a trailing stop loss. If the price moves in your favor, the stop loss automatically adjusts to lock in profits.
    • PLBreakEven: Moves stop-loss to break-even level.
    • StartHour, StopHour: Trading hours.
    • BasketProfit, BasketLoss: Closes all orders based on total profit or total loss.
    • FileData: Whether to store trading data in file.

  2. Divergence Calculation:

    • The script uses a built-in function called "divergence" to calculate a value. This calculation involves comparing two moving averages. Moving averages are just ways of smoothing out price data to see the overall trend.
    • The script looks for divergence between these moving averages, which is when the averages are moving in opposite directions. The script then uses the divergence value and inputs DVBuySell and DVStayOut to determine buy/sell opportunities.

  3. Trading Logic (Buy/Sell Decisions):

    • The script continuously monitors the "divergence" value.
    • If the "divergence" is high enough (above the DVBuySell threshold), the script considers it a potential buying opportunity.
    • If the "divergence" is low enough (below the negative of DVBuySell threshold), the script considers it a potential selling opportunity.

  4. Order Execution:

    • If a buy or sell opportunity is identified, the script sends an order to the broker.
    • The order includes the size of the trade (Lots), the acceptable slippage (Slippage), and the stop-loss and take-profit levels (LossLimit, ProfitMade).

  5. Trade Management:

    • Stop-Loss and Take-Profit: The script automatically sets stop-loss orders to limit potential losses and take-profit orders to automatically close the trade when the desired profit is reached.
    • Trailing Stop: If enabled (TrailStop is not 9999), the script will adjust the stop-loss order as the price moves in a profitable direction.
    • Break-Even: If enabled (PLBreakEven is not 9999), the script moves the stop-loss to the entry point (or a little above, to cover fees) once the trade reaches a certain profit level.
    • Basket Management: If BasketProfit or BasketLoss are reached, all open orders are closed.

  6. Housekeeping and Tracking:

    • The script tracks various statistics, such as the maximum number of orders, maximum equity, and minimum equity.
    • It also includes error handling to catch potential issues during order execution.
    • The script displays visual cues on the chart (text labels like "B" for buy, "S" for sell, "BE" for break-even, "TS" for trailing stop, "C" for closed) to show what it's doing.

In Simple Terms:

Imagine this script as a robot trader that looks at a special indicator ("divergence") to predict whether a currency pair is likely to go up or down. Based on this indicator, it automatically places buy or sell orders, trying to make a profit while limiting potential losses. It also has features to protect profits and manage risk, such as trailing stops and break-even orders.

Orders Execution
Checks for the total of open ordersIt automatically opens orders when conditions are reachedIt can change open orders parameters, due to possible stepping strategyIt Closes Orders by itself
Indicators Used
Moving average indicator
Miscellaneous
Uses files from the file systemIt writes information to fileIt issuies visual alerts to the screen
11 Views
0 Downloads
0 Favorites
Divergence Trader 
/* Divergence Trader
Works best on EURUSD H1 Timeframe
*/

#property copyright "Ron Thompson"
#property link      "http://www.lightpatch.com/forex"
// user input
extern double Lots = 0.1;               // how many lots to trade at a time 
extern int    Slippage = 2;             // how many pips of slippage can you tolorate
extern int    Fast_Period = 7;
extern int    Fast_Price = PRICE_OPEN;
extern int    Slow_Period = 88;
extern int    Slow_Price = PRICE_OPEN;
extern double DVBuySell = 0.0011;
extern double DVStayOut = 0.0079;
extern double ProfitMade = 0;           // how much money do you expect to make
extern double LossLimit = 0;            // how much loss can you tolorate
extern double TrailStop = 9999;         // trailing stop (999=no trailing stop)
extern int    PLBreakEven = 9999;       // set break even when this many pips are made (999=off)
extern int    StartHour = 0;            // your local time to start making trades
extern int    StopHour = 24;            // your local time to stop making trades
extern int    BasketProfit = 75;        // if equity reaches this level, close trades
extern int    BasketLoss = 9999;        // if equity reaches this negative level, close trades
extern bool   FileData = false;
// naming and numbering
int      MagicNumber  = 200601182020; // allows multiple experts to trade on same account
string   TradeComment = "Divergence_00_";
// Bar handling
datetime bartime = 0;                   // used to determine when a bar has moved
int      bartick = 0;                   // number of times bars have moved
int      objtick = 0;                   // used to draw objects on the chart
int      tickcount = 0;
// Trade control
bool TradeAllowed = true;               // used to manage trades
// Min/Max tracking
double maxOrders;
double maxEquity;
double minEquity;
double CECount;
double CEProc;
double CEBuy;
double CESell;
//+-------------+
//| Custom init |
//|-------------+
// Called ONCE when EA is added to chart or recompiled
int init()
  {
   int    i;
   string o;
   //remove the old objects 
   for(i = 0; i < Bars; i++) 
     {
       o=DoubleToStr(i,0);
       ObjectDelete("myx"+o);
       ObjectDelete("myz"+o);
     }
   objtick = 0;
//----
   ObjectDelete("Cmmt");
   ObjectCreate("Cmmt", OBJ_TEXT, 0, Time[20], High[20] + (5*Point));
   ObjectSetText("Cmmt", "Divergence=0.0020", 10, "Arial", White);
//----
   Print("Init happened ", CurTime());
   Comment(" ");
  }
//+----------------+
//| Custom DE-init |
//+----------------+
// Called ONCE when EA is removed from chart
int deinit()
  {
   int    i;
   string o;
   //remove the old objects 
   for(i = 0; i < Bars; i++) 
     {
       o=DoubleToStr(i,0);
       ObjectDelete("myx"+o);
       ObjectDelete("myz"+o);
     }
   objtick = 0;
//----
   Print("MAX number of orders ", maxOrders);
   Print("MAX equity           ", maxEquity);
   Print("MIN equity           ", minEquity);
   Print("Close Everything     ", CECount);
   Print("Close Proc           ", CEProc);
   Print("Proc Buy             ", CEBuy);
   Print("Proc Sell            ", CESell);
//----
   Print("DE-Init happened ",CurTime());
   Comment(" ");
  }
//+-----------+
//| Main      |
//+-----------+
// Called EACH TICK
int start()
  {
   double p = Point;
   double spread = Ask-Bid;  
//----
   int cnt = 0;
   int gle = 0;
   int OrdersPerSymbol = 0;
   int OrdersBUY = 0;
   int OrdersSELL = 0;
//----
   int iFileHandle;
   // stoploss and takeprofit and close control
   double SL = 0;
   double TP = 0;
   double CurrentProfit = 0;
   double CurrentBasket = 0;
   // direction control
   bool BUYme = false;
   bool SELLme = false;
   // Trade stuff
   double diverge;
   // bar counting
   if(bartime != Time[0]) 
     {
       bartime = Time[0];
       bartick++; 
       objtick++;
       TradeAllowed = true;
     }
//----
   OrdersPerSymbol = 0;
   for(cnt = OrdersTotal(); cnt >= 0; cnt--)
     {
       OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
       if(OrderSymbol() == Symbol() && OrderMagicNumber() == MagicNumber)
         {
           OrdersPerSymbol++;
           if(OrderType() == OP_BUY) 
             {
               OrdersBUY++;
             }
           if(OrderType() == OP_SELL)
             {
               OrdersSELL++;
             }
         }
     }
   if(OrdersPerSymbol > maxOrders) 
       maxOrders = OrdersPerSymbol;
//+-----------------------------+
//| Insert your indicator here  |
//| And set either BUYme or     |
//| SELLme true to place orders |
//+-----------------------------+
   diverge = divergence(Fast_Period, Slow_Period, Fast_Price, Slow_Price, 0);
   ObjectDelete("Cmmt");
   ObjectCreate("Cmmt", OBJ_TEXT, 0, Time[0], High[0] + (10*p));
   ObjectSetText("Cmmt","Divergence=" + DoubleToStr(diverge, 4), 10, "Arial", White);
   if(diverge >= DVBuySell && diverge <= DVStayOut)
       BUYme = true;
   if(diverge <= (DVBuySell*(-1)) && diverge >= (DVStayOut*(-1))) 
       SELLme = true;
   //if( diverge>=DVBuySell        ) BUYme=true;
   //if( diverge<=(DVBuySell*(-1)) ) SELLme=true;
//----
   if(FileData)
     {
       tickcount++;
       iFileHandle = FileOpen("iDivergence", FILE_CSV|FILE_READ|FILE_WRITE, ",");
       FileSeek(iFileHandle, 0, SEEK_END);
       FileWrite(iFileHandle, bartick, " ", tickcount, " ", diverge);
       FileFlush(iFileHandle);
       FileClose(iFileHandle);
     }
//+------------+
//| End Insert |
//+------------+
//ENTRY LONG (buy, Ask) 
   if(TradeAllowed && BUYme)
     {
       //Ask(buy, long)
       if(LossLimit == 0) 
           SL = 0; 
       else 
           SL = Ask - ((LossLimit + 7)*Point);
       if(ProfitMade == 0) 
           TP = 0; 
       else 
           TP = Ask + ((ProfitMade + 7)*Point);
       OrderSend(Symbol(), OP_BUY, Lots, Ask, Slippage, SL, TP, TradeComment, MagicNumber, White);
       gle = GetLastError();
       if(gle == 0)
         {
           Print("BUY  Ask=", Ask, " bartick=", bartick);
           ObjectCreate("myx" + DoubleToStr(objtick, 0), OBJ_TEXT, 0, Time[0], High[0] + (5*p));
           ObjectSetText("myx" + DoubleToStr(objtick, 0), "B", 15, "Arial", Red);
           bartick = 0;
           TradeAllowed = false;
         }
       else 
         {
           Print("-----ERROR----- BUY  Ask=", Ask, " error=", gle, " bartick=", bartick);
         }
     }
//ENTRY SHORT (sell, Bid)
   if(TradeAllowed && SELLme )
     {
       //Bid (sell, short)
       if(LossLimit == 0) 
           SL = 0; 
       else 
           SL = Bid + ((LossLimit + 7)*Point);
       if(ProfitMade == 0) 
           TP = 0; 
       else 
           TP = Bid - ((ProfitMade + 7)*Point);
       OrderSend(Symbol(), OP_SELL, Lots, Bid, Slippage, SL, TP, TradeComment, MagicNumber, Red);
       gle = GetLastError();
       if(gle == 0)
         {
           Print("SELL Bid=", Bid, " bartick=", bartick); 
           ObjectCreate("myx" + DoubleToStr(objtick, 0), OBJ_TEXT, 0, Time[0], High[0] + (5*p));
           ObjectSetText("myx" + DoubleToStr(objtick, 0), "S", 15, "Arial", Red);
           bartick = 0;
           TradeAllowed = false;
         }
       else 
         {
           Print("-----ERROR----- SELL Bid=", Bid, " error=", gle, " bartick=", bartick);
         }
     }
//Basket profit or loss
   CurrentBasket = AccountEquity() - AccountBalance();
//----
   if(CurrentBasket > maxEquity) 
       maxEquity = CurrentBasket;
   if(CurrentBasket < minEquity) 
       minEquity = CurrentBasket;
   // actual basket closure
   if(CurrentBasket >= BasketProfit || CurrentBasket <= (BasketLoss*(-1)))
     {
       CloseEverything();
       CECount++;
     }
   // CLOSE order if profit target made
   for(cnt = 0; cnt < OrdersTotal(); cnt++)
     {
       OrderSelect(cnt, SELECT_BY_POS, MODE_TRADES);
       if(OrderSymbol() == Symbol() && OrderMagicNumber() == MagicNumber)
         {
           if(OrderType() == OP_BUY)
             {
               CurrentProfit = Bid - OrderOpenPrice();
               // modify for break even
               if(CurrentProfit >= PLBreakEven*p && OrderOpenPrice() > OrderStopLoss())
                 {
                   SL = OrderOpenPrice() + (spread*2);
                   TP = OrderTakeProfit();
                   OrderModify(OrderTicket(), OrderOpenPrice(), SL, TP, White);
                   gle = GetLastError();
                   if(gle == 0)
                     {
                       Print("MODIFY BREAKEVEN BUY  Bid=", Bid, " bartick=", bartick); 
                       ObjectCreate("myz" + DoubleToStr(objtick, 0), OBJ_TEXT, 0, Time[0], 
                                    Low[0] - (7*p));
                       ObjectSetText("myz" + DoubleToStr(objtick, 0), "BE", 15, "Arial",
                                     White);
                     }
                      else 
                     {
                      Print("-----ERROR----- MODIFY BREAKEVEN BUY  Bid=", Bid, " error=", 
                            gle, " bartick=", bartick);
                     }
                 }

               // modify for trailing stop
               if(CurrentProfit >= TrailStop*p )
                 {
                   SL = Bid - (TrailStop*p);
                   TP = OrderTakeProfit();
                   OrderModify(OrderTicket(), OrderOpenPrice(), SL, TP, White);
                   gle = GetLastError();
                   if(gle == 0)
                     {
                       Print ("MODIFY TRAILSTOP BUY  StopLoss=", SL, "  bartick=", 
                              bartick, "OrderTicket=", OrderTicket(), " CurrProfit=",
                              CurrentProfit); 
                       ObjectCreate("myz" + DoubleToStr(objtick, 0), OBJ_TEXT, 0, Time[0],
                                    Low[0] - (7*p));
                       ObjectSetText("myz" + DoubleToStr(objtick, 0), "TS", 15, "Arial", White);
                     }
                   else 
                     {
                       Print("-----ERROR----- MODIFY TRAILSTOP BUY  Bid=",Bid," error=",gle," bartick=",bartick);
                     }
                 }

               // did we make our desired BUY profit
               // or did we hit the BUY LossLimit
               if((ProfitMade > 0 && CurrentProfit >= (ProfitMade*p)) || (LossLimit > 0 && 
                  CurrentProfit <= ((LossLimit*(-1))*p)))
                 {
                   OrderClose(OrderTicket(), Lots, Bid, Slippage, White);
                   gle = GetLastError();
                   if(gle == 0)
                     {
                       Print("CLOSE BUY  Bid=", Bid, " bartick=", bartick); 
                       ObjectCreate("myz" + DoubleToStr(objtick, 0), OBJ_TEXT, 0, Time[0],
                                    Low[0] - (7*p));
                       ObjectSetText("myz" + DoubleToStr(objtick, 0), "C", 15, "Arial", White);
                     }
                   else 
                     {
                       Print("-----ERROR----- CLOSE BUY  Bid=", Bid, " error=", gle, 
                             " bartick=", bartick);
                     }
                 }
              
             } // if BUY
           if(OrderType()==OP_SELL)
             {
               CurrentProfit = OrderOpenPrice() - Ask;
               // modify for break even
               if(CurrentProfit >= PLBreakEven*p && OrderOpenPrice() < OrderStopLoss())
                 {
                   SL = OrderOpenPrice() - (spread*2);
                   TP = OrderTakeProfit();
                   OrderModify(OrderTicket(), OrderOpenPrice(), SL, TP, Red);
                   gle = GetLastError();
                   if(gle == 0)
                     {
                       Print("MODIFY BREAKEVEN SELL Ask=", Ask, " bartick=", bartick);
                       ObjectCreate("myz" + DoubleToStr(objtick, 0), OBJ_TEXT, 0, Time[0], 
                                    Low[0] - (7*p));
                       ObjectSetText("myz" + DoubleToStr(objtick, 0), "BE", 15, "Arial", Red);
                     }
                   else 
                     {
                       Print("-----ERROR----- MODIFY BREAKEVEN SELL Ask=", Ask, " error=", 
                             gle, " bartick=", bartick);
                     }
                 }
               // modify for trailing stop
               if(CurrentProfit >= TrailStop*p)
                 {
                   SL = Ask + (TrailStop*p);
                   TP = OrderTakeProfit();
                   OrderModify(OrderTicket(), OrderOpenPrice(), SL, TP, Red);
                   gle = GetLastError();
                   if(gle == 0)
                     {
                       Print ("MODIFY TRAILSTOP SELL StopLoss=",SL,"  bartick=",bartick,"OrderTicket=",OrderTicket()," CurrProfit=",CurrentProfit); 
                        ObjectCreate("myz"+DoubleToStr(objtick,0), OBJ_TEXT, 0, Time[0], Low[0]-(7*p));
                       ObjectSetText("myz"+DoubleToStr(objtick,0),"TS",15,"Arial",Red);
                     }
                   else 
                     {
                       Print("-----ERROR----- MODIFY TRAILSTOP SELL Ask=", Ask, " error=", 
                             gle, " bartick=", bartick);
                     }
                 }

               // did we make our desired SELL profit?
               if((ProfitMade > 0 && CurrentProfit >= (ProfitMade*p)) || (LossLimit > 0 && 
                  CurrentProfit <= ((LossLimit*(-1))*p)))
                 {
                   OrderClose(OrderTicket(), Lots, Ask, Slippage, Red);
                   gle = GetLastError();
                   if(gle == 0)
                     {
                       Print("CLOSE SELL Ask=", Ask, " bartick=", bartick);
                       ObjectCreate("myz" + DoubleToStr(objtick, 0), OBJ_TEXT, 0, Time[0], 
                                    Low[0] - (7*p));
                       ObjectSetText("myz" + DoubleToStr(objtick, 0), "C", 15, "Arial", Red);
                     }
                   else 
                     {
                       Print("-----ERROR----- CLOSE SELL Ask=", Ask, " error=", gle, 
                             " bartick=", bartick);
                     }
                 
                 }

             } //if SELL
           
         } // if(OrderSymbol)
        
     } // for

  } // start()
//+-----------------+
//| CloseEverything |
//+-----------------+
// Closes all OPEN and PENDING orders
int CloseEverything()
  {
    double myAsk;
    double myBid;
    int    myTkt;
    double myLot;
    int    myTyp;
//----
    int i;
    bool result = false;
//----
    for(i = OrdersTotal(); i >= 0; i--)
      {
        OrderSelect(i, SELECT_BY_POS);
        //----
        myAsk = MarketInfo(OrderSymbol(), MODE_ASK);            
        myBid = MarketInfo(OrderSymbol(), MODE_BID);            
        myTkt = OrderTicket();
        myLot = OrderLots();
        myTyp = OrderType();
        //----    
        switch(myTyp)
          {
            //Close opened long positions
            case OP_BUY      :result = OrderClose(myTkt, myLot, myBid, Slippage, Red);
                              CEBuy++;
                              break;
            //Close opened short positions
            case OP_SELL     :result = OrderClose(myTkt, myLot, myAsk, Slippage, Red);
                              CESell++;
                              break;

            //Close pending orders
            case OP_BUYLIMIT :
            case OP_BUYSTOP  :
            case OP_SELLLIMIT:
            case OP_SELLSTOP :result = OrderDelete( OrderTicket() );
          }
        //----
        if(result == false)
          {
            Alert("Order " , myTkt , " failed to close. Error:" , GetLastError() );
            Print("Order " , myTkt , " failed to close. Error:" , GetLastError() );
            Sleep(3000);
          }  
        Sleep(1000);
        CEProc++;
      } //for
   } // closeeverything
//+------------------------------------------------------------------+
//|                                                                  |
//+------------------------------------------------------------------+
double divergence(int F_Period, int S_Period, int F_Price, int S_Price, int mypos)
  {
    int i;
//----
    double maF1, maF2, maS1, maS2;
    double dv1, dv2;
//----
    maF1 = iMA(Symbol(), 0, F_Period, 0, MODE_SMA, F_Price, mypos);
    maS1 = iMA(Symbol(), 0, S_Period, 0, MODE_SMA, S_Price, mypos);
    dv1 = (maF1 - maS1);

    maF2 = iMA(Symbol(), 0, F_Period, 0, MODE_SMA, F_Price, mypos + 1);
    maS2 = iMA(Symbol(), 0, S_Period, 0, MODE_SMA, S_Price, mypos + 1);
    dv2 = ((maF1 - maS1) - (maF2 - maS2));
//----
    return(dv1 - dv2);
  }
//+------------------------------------------------------------------+

Profitability Reports

GBP/USD Jul 2025 - Sep 2025
1.40
Total Trades 1006
Won Trades 812
Lost trades 194
Win Rate 80.72 %
Expected payoff 5.60
Gross Profit 19579.90
Gross Loss -13942.30
Total Net Profit 5637.60
-100%
-50%
0%
50%
100%
View Full Report
GBP/CAD Jul 2025 - Sep 2025
0.58
Total Trades 193
Won Trades 79
Lost trades 114
Win Rate 40.93 %
Expected payoff -19.48
Gross Profit 5182.61
Gross Loss -8943.09
Total Net Profit -3760.48
-100%
-50%
0%
50%
100%
View Full Report
GBP/AUD Jul 2025 - Sep 2025
1.27
Total Trades 884
Won Trades 663
Lost trades 221
Win Rate 75.00 %
Expected payoff 4.55
Gross Profit 18945.87
Gross Loss -14919.69
Total Net Profit 4026.18
-100%
-50%
0%
50%
100%
View Full Report
EUR/USD Jul 2025 - Sep 2025
0.00
Total Trades 119
Won Trades 74
Lost trades 45
Win Rate 62.18 %
Expected payoff -11522.62
Gross Profit 1647.10
Gross Loss -1372838.40
Total Net Profit -1371191.30
-100%
-50%
0%
50%
100%
View Full Report
USD/JPY Jan 2025 - Jul 2025
1.06
Total Trades 25
Won Trades 15
Lost trades 10
Win Rate 60.00 %
Expected payoff 1.86
Gross Profit 820.00
Gross Loss -773.53
Total Net Profit 46.47
-100%
-50%
0%
50%
100%
View Full Report
USD/CAD Jan 2025 - Jul 2025
0.43
Total Trades 248
Won Trades 117
Lost trades 131
Win Rate 47.18 %
Expected payoff -27.62
Gross Profit 5080.29
Gross Loss -11930.44
Total Net Profit -6850.15
-100%
-50%
0%
50%
100%
View Full Report
NZD/USD Jan 2025 - Jul 2025
0.42
Total Trades 347
Won Trades 149
Lost trades 198
Win Rate 42.94 %
Expected payoff -18.43
Gross Profit 4590.60
Gross Loss -10986.40
Total Net Profit -6395.80
-100%
-50%
0%
50%
100%
View Full Report
GBP/USD Jan 2025 - Jul 2025
0.43
Total Trades 69
Won Trades 30
Lost trades 39
Win Rate 43.48 %
Expected payoff -123.75
Gross Profit 6488.90
Gross Loss -15027.90
Total Net Profit -8539.00
-100%
-50%
0%
50%
100%
View Full Report
GBP/CAD Jan 2025 - Jul 2025
1.09
Total Trades 1174
Won Trades 840
Lost trades 334
Win Rate 71.55 %
Expected payoff 1.77
Gross Profit 25807.43
Gross Loss -23728.88
Total Net Profit 2078.55
-100%
-50%
0%
50%
100%
View Full Report
GBP/AUD Jan 2025 - Jul 2025
0.60
Total Trades 330
Won Trades 181
Lost trades 149
Win Rate 54.85 %
Expected payoff -19.40
Gross Profit 9431.74
Gross Loss -15833.41
Total Net Profit -6401.67
-100%
-50%
0%
50%
100%
View Full Report

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