Price Action Stochastic MT4

Price Action Stochastic indicator

? 1. Utilizing the Stochastic Indicator Signal

This system detects crossover signals from the Stochastic Indicator within specific thresholds and uses the EMA (Exponential Moving Average) as a trend filter to identify high-probability entries:

• Buy Entry: When Stochastic Main < 20, crosses above the Signal line, and price is above EMA → Enter Buy

• Sell Entry: When Stochastic Main > 80, crosses below the Signal line, and price is below EMA → Enter Sell

? 2. Signal Filters for Enhanced Accuracy

• EMA Filter: Only enter Buy when price is above EMA / Sell when price is below EMA

• ADX Filter: Avoid trades in non-trending markets (no entries if ADX < 10)

• Spread Control: Prevent entries when spread is too high

• Price Distance from EMA: Avoid trades if price is too far from EMA to reduce volatility risk

? Core Features of the EA

1. Customizable Timeframes: Supports M1–H4 with adjustable filter parameters

2. Risk Management System: Lot size based on equity, Max Drawdown settings

3. Adjustable SL & TP: Support for Risk-Reward ratios like 1:2, 1:3, or user-defined

4. Trailing Stop System: Lock in profits as price moves in favorable direction

5. 24/7 Automation: Enables consistent passive income generation

? Recommended Usage of Stochastic EA

• Platform: MetaTrader 4/5 

• Timeframe: M30 (30 minutes), 6 set files avilable for M1, M5, M15, M30, H1 and H4

• Currency Pair: XAUUSD (Gold vs. USD)

• Minimum Capital: Atleast $100 (>$1,000 recommended for optimal performance)

• Broker: Trusted broker with low spread

✅ Pros & ❗ Cons

✅ Strengths:

• Win rate: 65-93%(depended on  timeframe), Drawdown < 4% (on $10,000 capital)

• $8,613 profit in 1-year backtest

• Effective risk control and verified real tick-level backtest results

❗ Limitations:

• Low-frequency entries (capital preservation focus)

⚙️ EA Parameter Overview

Core Strategy

• TimeFrame = 30M

• EMA_Period = 319

• STO_Precent_K = 16

• STO_Score_Buy = 22

• STO_Score_Sell = 100

Signal Filters

• Spread = 40

• ADX_Period = 44

• ADX_Score = 12

• Distance_near_EMA = 5800

• Distance_far_EMA = 0

Risk Management

• Lot_Devided = 200,000

• SL = 2130 pips / TP = 2690 pips

• Trailing Stop = 1290 pips, Step = 700, Start = 980

Advanced Options

• On_Recovery = false

• Consecutive_losses = 2

• Recovery_Lot = 2.0

? Example of Lot Calculation Based on Capital

• Capital $10,000 → 10,000 / 200,000 = 0.05 Lots

• Capital $1,000 → 1,000 / 100,000 = 0.01 Lots

• Capital $100 → 100 / 200,000 = 0.01 Lots (rounded up)

? Professional, algorithmic trading powered by precise signal filtering and adaptive risk control.