Turning market signals into algorithmic magic—with a dash of humor and a lot of precision.
When it comes to developing Expert Advisors (EAs), choosing the right indicators is like picking the right ingredients for a gourmet dish. You want flavor, balance, and consistency. Over the years, I’ve tested, backtested, and occasionally rage-tested dozens of indicators. But a few always make it into my EA recipe book. Here are my top picks—and why they deserve a spot in your next trading bot.
🧠 1. Moving Average (MA): The Algorithmic Compass
Why I love it:
- Simple, elegant, and surprisingly powerful.
- Great for trend detection and smoothing out market noise.
- Works beautifully in crossover strategies (e.g., MA Fast vs MA Slow).
EA Use Case: Trigger buy/sell when fast MA crosses slow MA. Add filters like volume or volatility to avoid whipsaws.
Funny metaphor: Think of MAs as the GPS of your EA—it won’t tell you where the treasure is, but it’ll keep you from driving into a lake.
📊 2. Relative Strength Index (RSI): The Mood Ring of the Market
Why I love it:
- Measures momentum and overbought/oversold conditions.
- Helps avoid buying tops or selling bottoms.
- Easy to tweak for different timeframes.
EA Use Case: Buy when RSI < 30, sell when RSI > 70—or use it as a filter to confirm entries from other indicators.
Funny metaphor: RSI is like your EA’s emotional support animal—it sniffs out when the market’s feeling “too much.”
🔥 3. Bollinger Bands: The Market’s Elastic Waistband
Why I love it:
- Combines volatility and price action.
- Great for breakout and mean-reversion strategies.
- Visually intuitive and easy to code.
EA Use Case: Buy when price touches lower band and RSI confirms oversold. Sell when price hits upper band with RSI overbought.
Funny metaphor: Bollinger Bands are like stretchy pants—when price stretches too far, it usually snaps back.
🧪 4. ATR (Average True Range): The Risk Thermometer
Why I love it:
- Measures volatility, not direction.
- Crucial for dynamic stop-loss and take-profit levels.
- Helps avoid placing tight stops in choppy markets.
EA Use Case: Use ATR to size positions or set SL/TP based on current volatility.
Funny metaphor: ATR is your EA’s caffeine meter—if the market’s jittery, it tells your bot to chill out.
🧲 5. MACD: The Trend Whisperer
Why I love it:
- Combines momentum and trend-following.
- Offers multiple signals: crossovers, histogram shifts, zero-line breaks.
- Works well in trending markets.
EA Use Case: Trigger trades on MACD line crossing signal line, with confirmation from MA or RSI.
Funny metaphor: MACD is like your EA’s therapist—it listens to the market’s inner conflicts and suggests when to act.
🛠️ Bonus Tip: Don’t Marry Your Indicators
Indicators are tools, not gospel. The real magic happens when you combine them with smart logic, robust risk management, and adaptive filters. Test them. Break them. Rebuild them. Your EA deserves a toolkit, not a shrine.