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:
-
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.
-
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.
-
Trading Logic (Buy/Sell Decisions):
- The script continuously monitors the "divergence" value.
- If the "divergence" is high enough (above the
DVBuySellthreshold), the script considers it a potential buying opportunity. - If the "divergence" is low enough (below the negative of
DVBuySellthreshold), the script considers it a potential selling opportunity.
-
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).
-
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 (
TrailStopis not 9999), the script will adjust the stop-loss order as the price moves in a profitable direction. - Break-Even: If enabled (
PLBreakEvenis 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
BasketProfitorBasketLossare reached, all open orders are closed.
-
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
Indicators Used
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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/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%
EUR/USD
Jan 2025 - Jul 2025
1.16
Total Trades
2087
Won Trades
1493
Lost trades
594
Win Rate
71.54 %
Expected payoff
688.40
Gross Profit
10480573.60
Gross Loss
-9043893.10
Total Net Profit
1436680.50
-100%
-50%
0%
50%
100%
AUD/USD
Jan 2025 - Jul 2025
1.32
Total Trades
2051
Won Trades
1252
Lost trades
799
Win Rate
61.04 %
Expected payoff
297.38
Gross Profit
2544445.70
Gross Loss
-1934509.90
Total Net Profit
609935.80
-100%
-50%
0%
50%
100%
USD/CAD
Oct 2024 - Jan 2025
1.09
Total Trades
1191
Won Trades
877
Lost trades
314
Win Rate
73.64 %
Expected payoff
1.31
Gross Profit
19862.57
Gross Loss
-18301.18
Total Net Profit
1561.39
-100%
-50%
0%
50%
100%
NZD/USD
Oct 2024 - Jan 2025
1.32
Total Trades
1129
Won Trades
845
Lost trades
284
Win Rate
74.85 %
Expected payoff
3.04
Gross Profit
14119.50
Gross Loss
-10688.70
Total Net Profit
3430.80
-100%
-50%
0%
50%
100%
GBP/USD
Oct 2024 - Jan 2025
0.64
Total Trades
376
Won Trades
244
Lost trades
132
Win Rate
64.89 %
Expected payoff
-10.00
Gross Profit
6828.30
Gross Loss
-10589.10
Total Net Profit
-3760.80
-100%
-50%
0%
50%
100%
AUD/USD
Oct 2024 - Jan 2025
1.15
Total Trades
1138
Won Trades
0
Lost trades
0
Win Rate
0.00 %
Expected payoff
2.26
Gross Profit
20296.60
Gross Loss
-17724.90
Total Net Profit
2571.70
-100%
-50%
0%
50%
100%
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