Analysis and Explanation of the "Angel of Salvation" Expert Advisor
This expert advisor (EA) is a hedging trading system that uses the RSI indicator for the forex market. Below is a detailed breakdown of its functionality and trading logic:
"This bot has been meticulously optimized and completely redesigned to deliver peak financial performance for its users
General Specifications
Name: Angel of Salvation
Developer: John Wangombe Githinji
Programming Language: MQL4
Currency Pairs: All Pairs
Timeframe: M5 (but configurable)
Trading Strategy
This EA uses a hedging strategy based on the RSI indicator:
RSI-Based Signals:
Uses the RSI indicator on a higher timeframe (default: H1)
Buy Signal: RSI below 30 (oversold)
Sell Signal: RSI above 70 (overbought)
Option to reverse signals (REGEX_MODE)
Risk Management:
Fixed Stop Loss (SL) and Take Profit (TP)
Trailing Stop feature available
Progressive lot sizing (Martingale)
Maximum open trades limit (MaxTrades)
Special Features:
Option to close trades based on opposite signals (CLOSE_BY_OPP)
Drawdown Reduction System (DDR_ENABLED)
Account-wide profit target (AccountProfitTarget)
How It Works
Trade Entry:
The EA checks RSI conditions on the higher timeframe.
If RSI reaches oversold levels (Buy Signal):
Opens a buy trade if no position exists.
Closes sell trades if open (if CLOSE_BY_OPP is enabled).
If RSI reaches overbought levels (Sell Signal):
Opens a sell trade if no position exists.
Closes buy trades if open (if CLOSE_BY_OPP is enabled).
Open Trade Management:
Averages positions at predefined intervals (PipStep).
Increases lot sizes progressively (configurable multiplier).
Uses trailing stop for open trades.
Trade Exit:
Closes when average position reaches TP.
Closes when overall stop loss is triggered.
Closes when an opposite signal appears (if CLOSE_BY_OPP is enabled).
Money Management Features
Lot Sizing:
Configurable starting lot size (StartingLots).
Multiplier for increasing lots (1x to 2x adjustable).
Auto-risk management based on account balance (AutoMoneyManagement).
Risk Controls:
Maximum equity loss limit (UseEquityStop).
Time-based trade expiration (UseTimeOut).
Maximum open trades limit (MaxTrades).
Drawdown Reduction (DDR):
If open trades exceed a threshold (DDMaxOrders).
And combined profit of first & last trade reaches a target (DDProfitTarget).
Closes the first and last trade to reduce exposure.
Key Technical Notes
Uses a high-frequency timer (every 20 milliseconds).
Displays account & trade info on the chart.
Shows current, max, and min spread.
Includes an authentication system to prevent unauthorized use.
Limitations & Considerations
Martingale strategy requires substantial capital.
May underperform in strong trending markets.
Highly dependent on proper parameter settings.