Asset Strength Reversion project
Welcome to the Pipnotic Asset Strength Reversion (ASR) project page where you will find all you need to know about the ASR.
How it works
The ASR is a mean reversion algorithm and works in the following way
The algorithm scans all assets specified in the configuration, and looks for extreme asset strength divergences.
The algorithm continues to scan and qualify assets on all timeframes configured, automatically.
When qualified assets are identified, trades are opened according to risk options, and stop-losses and targets are set.
Before you use ASR
Please ensure that you download all available historical data for all symbols and time-frames ASR will be used to trade. Failing to do this may result in invalid signals and poor performance.
Before you start
Please remember to download all historical data for all time-frames and assets you wish to trade. In order to do this effectively, please watch the video for further details.
Frequently Asked Questions
Here are some of the most common questions and answers people have in relation to the Asset Strength Reversion algo.
How do I install the ASR Expert Advisor?
The ASR is an Expert Advisor (EA) that runs on MetaTrader 4 (MT4), and is installed like any other EA by simply copying the ex4 file to the MQL4\Experts\ directory, which is located in your MT4 terminal’s data directory, on your computer. When the file is copied, simply restart your MT4 terminal and the Pipnotic Asset Strength Reversion Algo will be visible in your list of Expert Advisors from within MT4. Simply drag it and drop it onto a chart to specify the month product key, your private key and other configuration options to activate. For more information, please visit the following link: https://www.metatrader4.com/en/trading-platform/help/autotrading/experts/experts_launch
Is the ASR profitable?
This depends on how it is configured and which time-frames it is used on. Based on the data gathered since the end of 2020 and thousands of trades, the answer to this question is yes.
What are the best settings?
We have defined a default configuration for the ASR, which works well for most symbols, but favourites do seem to exist. We have left the configuration a little open, as we recommend that you experiment for yourself, as this will get you well acquainted will the ASR, and the different configurations. Some users have found very profitable configurations that use slightly larger stops and smaller targets, without increasing the initial risk of each trade.
Does Pipnotic software work on Mac?
There are some issues getting our indicators to work on a Mac, as they are slightly more complex than normal indicators and Experts. As a result, we recommend that you use a Windows PC or rent a VPS on which to host our software, which is what all of our Mac users are doing.
What are the best time-frames for the ASR?
Based on thousands of trades, the data tells us that the four-hour time-frame works well. It should at least be mentioned that the one-hour time-frame and higher, all seem to work well. Using the ASR on small time-frames, less than the one-hour, can be difficult and is thus not recommended. That said, several users have found profitable configurations on time-frames as low at the 5-minute chart. It should be noted though that time-frames this small requires more aggressive trade management and experience.
Several users have invested many hours in identifying the ideal configuration of settings, and we have all reached similar conclusions. Euro and Sterling currency pairs on the four-hour chart, during the European and North American sessions, work well.
What does the EnableConfirmation setting do?
The EnableConfirmation setting forces the ASR to wait to take an entry until asset prices are quantitatively expressing a change in momentum. Not waiting for a confirmation can be compared to trying to pick tops and bottoms, which is rarely a good idea, as in highly volatile markets, asset prices may not revert to the mean. Enable Confirmation attempts to mitigate this risk.
What should I set the modifier to?
This will depend on whether the trend filter is enabled, as trending markets tend not to pull back as much as non-trending markets. When the trend filter is enabled, a modifier of about 0.5 – 1.5 is recommended. When the trend-filter is disabled, modifiers set to values greater than 1.5 and as much as 2.5 can be used. It should be noted that the smaller the modifier value, the more active the ASR will trade.
The ASR has an extremely flexible configuration to suit the needs of any trader. Configurations can be specified to suit the needs of the short-, medium- and long-term trader.
Due to the flexible nature of the algorithm, it can be used to trade anything your MT4 broker has a price feed for, including Forex, stocks, cryptocurrencies, futures, commodities and more. Simply download the historical data for each asset, configure the ASR, and you’re ready to go.
Here are some results shared by users from the community. While we can’t guarantee that new users will be able to reach the same level of success using the ASR, successful users are always willing to share their configurations and methodology with everyone in the project forum. It should be understood that the results shared have come from hard work with, and a solid understanding of, the ASR algorithmic trader, which comes with spending time using and experimenting with the ASR.
The ASR is not a set-and-forget algorithmic trader (yet) that you can simply switch on and walk away from, but a tool that will teach you patience, and help you to understand when and how market-cycles begin, progress over time, and come to completion, which is both fascinating and enriching to one’s understand of the markets.
Trade around the clock
Sometimes you want the algorithm to run around the clock, which can be accomplished by using a VPS server on which to host the software. Simply install MT4 on your server, download the historical data and turn on the ASR. Then you can walk away and manage trades via the MT4 app on your telephone.
"I found Pipnotic and Sarid Harper! Sarid and the Pipnotic Supply and Demand Indicator shows what's going on in the market I no longer have to trade blindly. The supply and demand indicator is not the holy grail, but together with the symposiums it’s bloody close!"
– Ove Nordkvist