Advisors for trading binary options. Trading strategy ADX indicator Determining trend strength using ADX

31.07.2023

A trading robot is an integral part of modern trading, which provides earnings on autopilot. The term binary options advisor means a program that, by turning it on, a speculator can make money on autopilot. He can go to the park, putting this robot in money-making mode. When he comes home, the adviser will earn him money.

In principle, automated trading has been used for quite a long time. This method is also used on Wall Street, although some newcomers still look at it with some caution. But what does this have to do with? Surely, traders cannot get used to the idea that binary options advisors in MT4 are a unique opportunity that allows them to earn money without actually doing anything.

Perhaps this may remind you of some cartoon or TV series about how, despite the difficult situation in developing countries, some cunning businessmen manage to achieve success and their expectations are fully justified.

In fact, there is nothing strange about this, because trading robot independently analyzes Current state market, helping to open transactions or independently making trading positions for a speculator. If a trading advisor is created on the basis of a good trading algorithm, he is able to make a lot of profitable trading transactions.

So far, there are not many really cool advisors for binary options on MT4, but that’s why we are writing this article, which will show good robots for automatic trading to this market.

Main advantages of automated trading

In general, using trading advisors for binary options can solve a number of difficulties that almost every beginner faces. First of all, there may be a loss of time, which is not desirable, because binary options are time trading.

It is clear that every person has a lot of personal matters that he has to carry out, some of them even daily. But no one has canceled the study of the principles of chart movement. You yourself can track these fluctuations, slowly learning to understand current situation on the stock exchange, independently.

Of course, automatic trading with binary options greatly relieves the work schedule with the selected underlying asset. The consequence of this is saving effort and time; moreover, the robot trades itself, without your intervention. One must always remember the fact that Most traders get excited when trading digital contracts, acting on emotions instead of simply working on your trading strategy with a cold mind.

Robots have no emotions; they act strictly according to their own algorithm, making the first transaction, then the second, and so on. An advisor is even better than a person, because he does not get tired, he can even work around the clock, and he himself knows when to stop.

Using news trading advisors for binary options will allow speculators to buy even more profitable digital contracts without wasting time. The robot won't waste time going out for a cup of coffee, so this is a great opportunity for you to improve your trading results.

You should take into account the fact that not all binary options trading advisors can have a positive impact on your results. Some programs posted on the Internet are still quite crude, so their use is extremely doubtful.

Now you definitely know that the use of automatic trading programs is, to a certain extent, completely justified, but you must analyze the programs that you install in your trading terminal, since this money is your life.

Remember that all advisors for binary options, especially with martingale, work on MT4 terminals, and only on them, since other terminals cannot provide such a variety of programming languages. We offer you free trading robot options. You will only need download the archive and install this expert in the root folder MT4 trading terminal.

To trade options on MT4, open an account with the company

Beginners may have some trouble putting the bot on a chart. Let's once again focus on the moment of installing the robot. Trading terminal should be turned off - it’s easier that way. Here are the instructions:

  1. Copy the file with the ex4 or mq4 extension to the MQL folder in the Meta Trader 4 terminal files;
  2. Turn on the MT platform and proceed to the next step;
  3. Click on the “Navigator” button, which is located at the top of the terminal;
  4. Select the “Advisers” section, which will contain the trading robot you downloaded;
  5. Double-click on it. Now, having configured the robot, or better yet, leave the parameters as original, the advisor will be moved to the price chart.

At any time, you can easily change the parameters of the trading robot in the internal parameters of the advisor by simply clicking on the smiley face at the top right of your quote chart.

Trading robot for binary options “Boom”

The main advantages of the program we mentioned above are its simplicity and intuitive understanding of the terminal’s functionality. Quite often, the Boom binary options advisor shows really cool results.

This development is based on technical indicator Moving Average, that is, a subroutine that analyzes information based on the closing levels of candles on the chart of the underlying asset. As a result of monitoring underlying assets, the robot comes to a conclusion about buying or selling a binary option.

We caution you against trading during times of very high price activity. Also, the robot does not need to be installed on Monday and Friday.

ADX is a trend that we talked about in one of our articles. Using it together with the moving average and stochastic, the reliability of this instrument increases several times. For this reason, we present to your attention the ADX advisor for binary options, which is based precisely on these three indicators.

The ADX Expert Advisor on MT4 was designed from the very beginning for trading on foreign exchange market, but it's also great for digital options. The main condition is not to activate this advisor for trading short-term contracts.

When trading using the ADX advisor, you must meet the following conditions:

  • Time interval – M30 and H1;
  • The asset used is EURUSD;
  • Download the advisor;
  • The program provides 2 trading modes – ADX + Moving Average in the presence of a directional trend and ADX + Stochastic during a sideways trend.

Let's figure out its algorithm while the developer gives us this opportunity. Executing a transaction when there is a price trend:

  • The ADX indicator line is located above level 40. This indicates the presence of a pronounced price trend;
  • The ADX DI+ line is above the DI- band;
  • The candle closes above the moving average price;
  • Expiration time – 3-5 candles.

Opening a trading position during a sideways trend (Call):

  • ADX is below the 40 level, which indicates a flat;
  • The stochastic oscillator is in the 20-80 zone;
  • The main band of this oscillator breaks the signal line from bottom to top;
  • When a new candle is opened, the advisor opens a deal.

This Forex candlestick advisor is also suitable for binary options, but it works much better on binaries. To begin with, we recommend that you test this tactic by entering into trading positions on a demo account.

It is likely that at first the results will not please you, but over time, with a stable growth of the deposit, the profit margin will grow like a snowball. Over time, you will definitely appreciate the work of this robot in the Meta Trader 4 platform.

Algobit – trading robot for beginners

The next interesting advisor is Algobit - development. The developers have laid out a huge pack of indicators and tools technical analysis into this robot so that the automatic advisor works as efficiently and effectively as possible, determining and analyzing the direction of price movement.

Let us immediately note that those traders who make money using this trading module complain about deterioration in profitability indicators in the event of a high level of exchange volatility. In such times, it is better to turn off the robotic expert and turn it on only in the evening.

From 14 to 20 Moscow time, market activity is maximum, you must understand this. Volatility can be predicted and very easily. To do this, you can use where the strongest news will be visible in the form of 2-3 bull heads or green or red dots.

Trading robot for binary options “BinaryOpt”

This stock advisor is very similar to the previous robot, but the mechanism of its work, in addition to analyzing moving averages, also consists of viewing the readings of the Stochastic technical instrument. If you plan to use this automatic algorithm to trade classic digital options.

The advisor trades several types of binary options at once: boundaries, range, corridor and constructor. If any of these contracts are not provided by the company, this will not be a problem, since the number of transactions will still be very large.

You should not use this robot when trading short-term binary contracts.

Trading robot for binary options “Fractal”

The specifics of trading in the binary options market provide for the presence of 5 bar fractals, which are recorded by this robot. When a fractal breaks down or up, the robot will enter into a deal in the corresponding direction.

The system is ideal for trading medium-term binary transactions on time intervals from 5 to 24 hours. Do not trade this robot on small time frames, as the system works worse on them and there may be losses.

The main difficulties in this case are finding entry points and determining the duration of the trend. ADX and RSI trading strategy will help solve these questions .

Characteristics of the ADX and RSI trading strategy.

— Currency pairs: preferably EURUSD, GBPUSD, USDCAD. For others, it is necessary to select parameters.

— Timeframe: H1, H4.

ADX and RSI trading strategy. Operating rules.

1. Determining trend strength using ADX.

The priority of any trader working on is to search for a strong trend. For this purpose, it is used with a period of 14 and added levels of 30 and 40. The indicator is installed on the chart (time frame H1 or H4). Remember, the ADX indicator does not show the direction of the trend, but only its intensity. If currency pair consolidation is observed, the weakening of the trend the indicator will have lower values ​​and vice versa, the stronger the trend, the higher the ADX value. According to the terms of the trading strategy, we only work if ADX is above 30.

2. Determining the entry point using RSI.

As soon as a strong trend is found on the chart (the ADX indicator is above level 30), it is necessary to determine the entry point into the market.

Template for ADX and RSI trading strategy can be downloaded at the bottom of the article.

To determine the right moment to open a position, use RSI indicator with a period of 14 and levels of 30 and 70, defining oversold and overbought zones. In an uptrend, we buy when the ADX indicator value becomes above 30 and the RSI enters the overbought zone (above the level of 70). In a downward trend, we sell when the ADX indicator value is also above 30 and the RSI enters the oversold zone (below 30).

Using the example above: EURUSD chart time frame H1. The ADX indicator is growing and shows that the trend is strengthening in the market. 12/02/2014 ADX goes beyond level 30, i.e. gives us a signal, the RSI indicator goes beyond the level of 30 and this is a signal to open a sell position. I think everything is simple and clear here.

Spoiler

I do not mind. I give everyone the grail)
\

I also wrote on mql but no one really answered anything
_http://forum.mql4.com/ru/46198

Maybe someone here will come up with something

I wrote a simple advisor not for trading, but to test another idea. but it just so happened that the advisor turned out to be profitable in tests

To check, I opened an account and put it there, but it doesn’t trade at all! does not open a single transaction and the most unpleasant thing is that it does not write any errors

Accordingly, the question arose: does it work at all? will it trade the same as on the tester?

Also noticed a large number of"graphics mismatch errors" and the quality of the simulation is marked as n/a (maybe this is the problem???)

test with initial parameters STOP and TAKE optimization was carried out over the previous year only indicator parameters were optimized

test (same parameters) with MM enabled


but I was especially interested in the optimization graphs:

Optimization without MM (it is clear that most of the chart is above the level of the initial balance, but unprofitable sets most likely cover the amount of profitable ones (didn’t count))


with MM (here it’s more interesting; in fact, the initial balance of 3000 USD gives a huge profit with some settings and the sum of profitable passes is 9 times higher than the sum of unprofitable ones)


But the question remains open: why, when installed on a chart, the adviser stupidly “presses the face”

The rest of the advisors work fine, this one doesn't


We ask all workers to try to test it themselves to see if the test results will be similar


Somehow this expert is very similar to the one that is sold, it seems, by the developer of the site _http://foreignexchange2008.narod.ru/In_Trends.html
The advisor is designed for verification purposes. The strategy is based on the ability of the ADX indicator to determine the current strength of the trend present in Forex, or its lack of trend, that is, the presence of sideways movement. Depending on the state of the market at the moment (trend flat) it is used together with ADX trend indicator MA, or flat - Stochastic.
  • Working timeframe: H1. The zero bar is not used.
  • Work tool: EURUSD.
  • Download: WF_ADX-MA-Stochastic v3.1.mq4
The advisor combines two independent options for using the strategy:
  • 1st option: ADX-MA - trend version of the strategy.
  • 2nd option: ADX-Stochastic - flat version of the strategy.
It is possible to use each of the options separately, as well as their simultaneous use for the purpose of mutual hedging in changing market conditions. In this case, transactions of each option are opened and closed independently.

Trading rules for option 1 ADX-MA (Buy):

  • ADX is above the specified level and is growing (trend).
  • ADX DI+ line is larger than DI-.
  • The closing price of the bar is greater than the MA.
  • Closing a position - take profit, stop loss, trailing stop or reverse MA crossing.
Trading rules for option 2 ADX-Stochastic (Buy):
  • ADX is less than a given level (flat).
  • Stochastic is less than a given oversold level.
  • The main stochastic line crosses the signal line from bottom to top.
  • At the opening of a new bar, open a long position (Buy), set the take profit and stop loss specified in the settings.
  • Closing a position - take profit, stop loss or trailing stop.
Default advisor settings.
  • ADXperiod=15 (ADX period).
  • ADXLevel = 30 (ADX trend/flat level).
  • UseMA=true (enable ADX-MA option).
  • MAperiod=30 (MA period).
  • CloseByMA=true (enables closing based on reverse MA crossing).
  • UseStochastic=true (enable ADX-Stochastic option).
  • Kperiod=16 (%K stochastic period).
  • Dperiod=3 (%D stochastic period).
  • Slowing=3 (stochastic slowdown).
  • SellLevel = 80 (stochastic overbought level).
  • BuyLevel = 20 (stochastic oversold level).
  • TakeMA=280 (take profit ADX-MA).
  • StopMA=50 (stop loss ADX-MA).
  • TakeStochastic=110 (take profit ADX-Stochastic).
  • StopStochastic=110 (stop loss ADX-Stochastic).
  • Tral=false (enable trailing stop).
  • TS=60 (trawl level).
  • TralStep=30 (trawl step).
  • MM=false (enable MM).
  • MMRisk=0.1 (risk of MM).
  • Lots = 0.1 (fixed lot).
*The number of points is indicated for 4-digit terminals. For 5-digit quotes, the values ​​of these parameters are recalculated automatically in the advisor.
DMI - Directional Movement Indicator

Directional movement is a concept that J. Wells Wilder Jr. first described in his book "New Concepts in Technical Trading System" in 1978. The Directional Motion Indicator (DMI) is a useful and versatile technical indicator that has two great features. First, the DMI itself is an excellent indicator of market direction. Second, one of the derivatives of the DMI is the important Average Directional Index (ADX), which not only identifies markets that are trending, but also provides a way to assess the strength of trends.

The directional movement (DI) calculation is based on the assumption that when an uptrend occurs, today's price peak should be higher than yesterday's. Conversely, when there is a downtrend, today's low price should be lower than yesterday's. The difference between today's peak and yesterday's peak is the move up or +DI. The difference between today's and yesterday's lows is the downward movement or -DI. Internal days where today's peak or trough does not exceed yesterday's are essentially ignored. The positive and negative DI are separately averaged over a period of several days and then divided by the average “true range.” The results are normalized (multiplied by 100) and shown as oscillators.

Using the ADX indicator

The ADX indicator is often overlooked due to the obvious disadvantage of not being correlated with price movements. Someone casually examining ADX's rise during price declines might conclude that the indicator was giving false signals about market direction. It is extremely important to correctly understand from the very beginning that the ADX indicator itself does not indicate the direction of the market. The ADX indicator can fall when prices rise and rise when prices fall. The purpose of ADX is to measure the strength of a trend, not its direction. To determine the direction of the market you need to use additional indicators, such as DMI.

Some traders place a lot of importance on the ADX level as an indicator of trend strength, and they would argue that a reading of 28 indicates a stronger trend than a reading of 20. The direction of the ADX is significantly more indicative than its absolute value. An upward change, for example from 18 to 20, shows a stronger trend than a negative change from 30 to 28. A good general rule can be stated as follows: while the ADX indicator is rising, any ADX value above 15 indicates a trend. We recommend familiarizing yourself with ADX and using it in conjunction with your favorite technical indicators. You will soon discover certain levels of rising ADX that produce outstanding results with your favorite indicator. One indicator works well when ADX rises above 15, and the other when ADX rises above 25. When ADX begins to decrease at any level, it is evidence that the market has gone sideways and is forming a sideways trend.