The Signal Builder is a powerful tool that allows you to create and design your own trading strategy. You’ll be able to choose from 9 of the most famous technical indicators and combine them as you wish to fit your needs, creating amazing trading signals, regardless your level of expertise.
Once you’ve come up with your ideal trading strategy, you will be able to back-test it with historical data on real market graphics, and see for yourself if your designed strategy provides good buy/sell signals and results. You can test as much as you want without putting in risk any of your capital. Once you feel confident, you can connect MetaTrader with your Binary Options broker and start trading for real.
Signal Builder files are inside MT2Trading installation package. To have it available on MetaTrader you just have to follow these 3 simple steps…
Once you have the Signal Builder files inside your MetaTrader folders, proceed to open it on a chart. To open it, follow these steps:
In this section you can configure everything related to the trade: Signal name, trade amount, expiry time and martingale strategy.
Enable/disable Signal Builder.
The signal name is used to distinguish signals from each other. This will be the name of our signal inside the MT2 platform. The statistics and the operation history are also based and ordered according to the names of the signals.
The default name is “MySignal”. Modifying this parameter is completely optional.
Parameter destined to specify the trade amount.
In the example, the trade amount is “1.0” which means that each the robot will open trades of $1 USD.
To change the trade amount, just modify this parameter.
For example: For $5 USD, you should write “5.0”. For $10, “10.0”, and so on …
Use this parameter to specify the expiry time of your trades.
In the example, the expiry time is set to “5”. This means that each operation that the robot executes, will automatically close 5 minutes after being placed. If you would like major or minor temporalities, modify this number.
Martingale Strategy is deactivated by default.
To activate it open the menu where it says “No Martingale” and choose the Martingale strategy that you want. To learn more about Martingale Strategy, click here
You can back-test your signal. This functionality is very useful as it is based on data and statistics collected on past trades, it will allow you to analyze how good or bad your signal is.
Enable/Disable box with the information of the signal test.
Prior to adjusting the start date, you must have the history downloaded.
To download the history:
Deadline where our Back Tester will stop gathering information of the signals.
Minimum payout percentage that our Back Tester will take into account.
As we mentioned before, Signal Builder will allow you to create your own signals based on different indicators. We will explain each of these indicators and how to configure them. We can Enable/Disable any indicator
Bollinger bands are one of the most used indicators to compare the volatility of the price of any asset and the relative value of its price over a period of time. Bollinger bands are used to:
The standard deviation is a statistical parameter that provides a good indication of volatility. The use of this parameter to calculate the bands ensures that these will respond quickly to price variations reflecting periods of high and low volatility. Likewise, the strip between the upper and lower bands contains, statistically, almost 90% of the possible price variations, which means that any movement of the price outside the bands has special relevance.
The Bollinger bands are composed of three values.
We can configure the moving average periods, and the deviation of our bands with respect to the moving average, as well as the displacement, the latter will move the bands, to the left will be a value negative, and on the right a positive value.
We will have the possibility to configure up to two Bollinger bands.
A. Bollinger Bands (BBx): Enable/Disabled
B. BBx: Period: Number of candles that will be taken into account to make the calculation.
C. BBx: Deviation
D. BBx: Shift
E. Type of the price: Price taken into account to perform the mathematical formula
Relative Strength Indicator performs a series of calculations on the closings of the last X sessions (14 sessions the most usual parameter) and shows the force of the movement. Basically the higher the closures the higher the value of the RSI, and the lower the closures the lower the value of the RSI. The RSI scale goes from zero (0) to one hundred (100). This calculation is carried out by the computer, and we only see values translated to a line (in this case, blue).
When this value reaches an upper limit ( in this case 75 ) it is considered an overbought market and it is said that there is a “high” probability that the price will go down. Applies the same case for the lower value (in this case 25), which is called oversold market with the difference that now, the price tends to go up. Following the previous methodology, our indicator will send a buy signal when the price is below the lower level , and will send a sell signal when it surpasses the superior level .
We can establish the periods of our RSI, as well as the overbought and oversold levels.
A. RSI: Enable/Disabled
B. Period: Number of bars that will be taken into account to measure the hardness of the price until the last bar formed.
C. Price: Price that will be taken into account to perform the mathematical formula.
D. Overbought Level: It is suggested that this level be above the value of 70.
E. Oversold Level: It is suggested that this level be below the 30 value.
A versatile indicator that can be used to identify a new trend in the market or warn about extreme conditions.
In general terms, CCI measures the current level of the price in relation to an average price level during a given period of time. The CCI is high when the prices in the market are well above its average and is relatively low when prices are well below average. In this way, the CCI can be used to identify overbought conditions (the financial asset has been excessively bought) and oversold (the financial asset has been excessively sold). We can establish our CCI periods, as well as the overbought and oversold levels, and the price that will take into account.
A. CCI: Enabled/Disabled
B. Period: Number of bars that will be taken into account to measure the hardness of the price until the last bar formed.
C. Price: Price that will be taken into account to perform the mathematical formula.
D. Overbought Level: It is suggested that this level be above the 100 value.
E. Oversold Level: It is suggested that this level be below the value of 100.
The Awesome Oscillator is an indicator used to measure market momentum. Awesome Oscillator calculates the difference of a 34 Period and 5 Period Simple Moving Averages. The Simple Moving Averages that are used are not calculated using closing price but rather each bar’s midpoints. Awesome Oscillator is generally used to affirm trends or to anticipate possible reversals.
The values of the AO fluctuate above and below the zero line. The resulting values are drawn as green and red lines. The red color indicates that the bar is lower than the previous bar. A green bar appears when it is higher than the previous one.
We can configure overbought and oversold levels. In this case, the levels 0.00096 and -0.00096 respectively were established. If a candle closes below or above these values, our Signal Builder will send a signal, as shown in the image.
A. Awesome Oscillator: Enabled/Disabled
B. Overbought Level: It is suggested that this level be above the 0 value.
C. Oversold Level: It is suggested that this level be above the 0 value.
This technical indicator compares the current closing price with the price range for a certain period of time. The indicator consists of two lines. The main line K (blue color). The second line D (dotted red) is the moving average of the K line.
Our indicator (SignalBuilder) will send a sell signal when the red line is above/below the levels we established as overbought and oversold. In this case, it sends a sell signal because our stochastic exceeds the overbought level, and the candle closes above it. We can configure the values of our stochastic directly in the SignalBuilder.
A. Stochastic Oscillator: Enabled/Disabled
B. K Period: Number of time periods used in the stochastic calculation.
C. D Period: Number of time periods used when calculating a moving average of K.
D. Slowing: This value controls the internal smoothing of K. A value of 1 is considered a fast stochastic; a value of 3 is considered a slow stochastic.
E. Mode: The method (exponential, simple, smoothed or weighted) used to calculate the D.
F. Price: Price that will take into account. Low/High or Close/Close. Many authors suggest the use of “Low/High”.
G. Overbought Level: We suggest this level to be above 70.
H. Oversold Level: We suggest this level to be below 30.
Williams Percent Range (WPR) is a dynamic indicator that determines the overbought/oversold status. The WPR is similar to the Stochastic Oscillator. The difference between them consists only in that the WPR has the scale inverted and the Stochastic is constructed using the internal smoothing. The indicator takes into account a period for the mathematical calculation. It has the very particular characteristic to work on negative percentage values. It is important to have this in mind since the parameters that you will have to set must be between the values 0% and -100%. Otherwise, the values will never reach a positive value, verify that the levels are negative.
Indicator values within the range of -80% to -100% indicate that the market is oversold. Indicator values within the range of -0% to -20% mean that the market is overbought. The Williams Percent Range indicator anticipates price turns. Almost always forms a spike and turns down a certain period of time before the price reaches its peak and turn down. In the same way, the Williams Percent Range usually forms a valley and is turned upwards in advance. Inside our Signal Builder, we can configure the periods and the overbought/oversold levels.
A. WPR#: Enabled/Disabled
B. Period: Number of candles used in the calculation.
C. Overbought Level
D. Oversold Level