If you use the MT5 trading platform, know that you can write your own EA without much work, but with good results. So, let’s look at a robot that uses oscillators and candlesticks pattern to trade for you: stohastic based Dark Cloud Cover and Piercing Line EA. It uses CCandlePattern class that creates trade signals with candlestick pattern.
How does it work?
The Dark Cloud Cover is a reversal bearish candlestick. It creates a candlestick in the first day, and the second closes at the middle of the level registered the previous day. The Piercing Line, on the other hand, follows the downward trend and closes above the midpoint from the previous day, signaling the robot that a bottom level can be created.
Now comes the role of the stochastic oscillator. It confirms opening short or long positions. Simply said, when %D line is bigger/smaller than the level it corresponds to, it gives the order to open long or short. Dark Cloud Cover and Piercing Line robot will close a position if %D gets to the opposed critical level, which is set at 80 for long and at 20 for short.
Want to try another MT5 robot? Pick one for the table:
|Dark Cloud Cover and Piercing Line||Engulfing and MFI||Exp_Fast2||LeManTrend||Hammer and MFI|
|LibCustomChart||Lines CrossOver||Multik EA||Puria Method||Stars and RSI|
Long/short positions for expert advisor Dark Cloud Cover based on Stohastic
The Stochastic indicator, therefore, confirms the Piercing Line if the signal is below 30, while the short position closes if the indicator is above 20 or 80.
The Stochastic indicator confirms the Dark Cloud Cover if the signal is above 70, and closes the long position when the indicator crosses the 80 or 20 levels, going downward.
You will need to test this EA, once you set it up with the MQL5 Wizard. While the backtest results registered by the developers are quite encouraging, unless you take it for a test yourself, you won’t determine the complexity of its programming.