Double Stochastic Cross Over Expert Advisor

Double Stochastic EALiterally Stochastic means aim or guess. Stochastic Oscillator is a technical lagging momentum indicator developed by George. C. Lane. Stochastic Oscillator just follows the speed or momentum of price. Before using any technical indicator or Expert Advisor, a trader must be aware of on what conditions it may work. It is most commonly used to identify overbought and oversold levels. Many new traders follow Stochastic Oscillator’s signal. Most commonly used setting is 14,3,3 applied to Low/High. Professional trader’s can make money by just following divergence and bull/bears setups seen in Stoch Oscillator. Following is the formula used with Stochastic Oscillator:

%K = 100[(C – L14)/(H14 – L14 )]

where C = Recent Closing Price
L14 = Low of previous 14-period bars
H14 = High of previous 14-period bars
%D = 3-period Moving Average of %K

Double Stochastic Cross Over Expert Advisor :

Many people prefer automating Forex strategy as they don’t need continuous monitoring, high accuracy provided that EA is profitable. We have automated Stochastic Oscillator Cross Over algorithms for educational use only. Stochastic Oscillator is often prone to spikes and may leave a wrong signal resulting in a huge loss. In order to overcome this problem, we have implemented double stochastic cross over strategy. Instead of entering trade with signal from fast stochastic, we have also added a slow stochastic for exact entry and exit points. [adsense]

Strategy Behind Double Cross Over EA:

Entry
Buy when 5,3,3 %K crosses above %D and Buy when 14,3,3 %K crosses above %D
Sell when 5,3,3 %K crosses below %D and Sell when 14,3,3 %K crosses below %D

Exit
Close Buy when 5,3,3 above 75
Close Sell when 5,3,3 below 20

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