FX Diamond – Expert Advisor

Forex Diamond MT4 Expert Advisor

1. System Architecture

The EA operates using a multi-algorithm architecture, combining several independent trading modules:

1. Trend-Following Module (TFM)

2. Counter-Trend / Mean Reversion Module (CTM)

3. Breakout Momentum Module (BMM)

Each module evaluates market conditions based on its own set of parameters and generates trade signals autonomously. The EA then applies a priority and filtering system to determine whether a signal should be executed.

2. Core Algorithms

2.1 Trend-Following Module (TFM)

Uses a blend of:

• Directional movement indicators

• Moving-average-based momentum filters

• Volatility-normalized triggers

The module seeks structured directional trends and avoids ranging environments via volatility-based filtering.

2.2 Counter-Trend Module (CTM)

Designed to detect exhausted price swings.
Typical components:

• Short-term reversal pattern recognition

• Overbought/oversold oscillation thresholds

• Mean-reversion volatility envelopes (custom bands)

CTM executes small-to-medium retracement trades with tight stop-loss control.

2.3 Breakout Momentum Module (BMM)

Monitors consolidation, volatility compression, and imminent breakout conditions.
Relies on:

• ATR expansion triggers

• Breakout of custom support/resistance zones

• Acceleration-based confirmation signals

This module is intended for volatility expansion phases.

3. Signal Filtering and Execution

Before order placement, each signal is processed through multiple filters:

• Spread Filter – Blocks trades above configurable maximum spread.

• Slippage Control – Limits deviation between requested and filled price.

• Trend Stability Filter – Confirms directional reliability before trend entries.

• Market Condition Filter – Avoids low-liquidity periods and certain high-risk time windows.

Execution uses instant or market orders, depending on the module and broker execution type.