KDJ Expert Advisor Strategy Diagram
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A KDJ diagram in which the J line is rebuilt as the difference between the %K and %D lines of the Stochastic Oscillator. That difference decides the side: the diagram buys when it turns positive or when %K keeps rising while it is already positive, and sells on the mirror conditions. Hourly candles give a month of data enough bars, while percentage stop and target distances work on any instrument.
Strategy Overview
- The Stochastic Oscillator with a 30-bar %K and a 6-bar %D stands in for KDJ, and the difference K - D plays the role of the J line.
- There are two ways into a trade: the difference crossing zero, or the %K line moving in the direction the sign of the difference already points to.
- A position is opened only from flat, so the strategy never pyramids and never reverses; the protection block is what ends the trade.
Entry and Exit Rules
- Long entry: K - D is positive and either it was negative on the previous candle, which makes this candle the zero cross, or %K is higher than on the previous candle. The position must be flat; one lot is bought at market.
- Short entry: K - D is negative and either it was positive on the previous candle, which makes this candle the zero cross, or %K is lower than on the previous candle. The position must be flat; one lot is sold at market.
- Exit: There is no signal exit: the position protection block closes the trade with market orders at a 2% take profit or a 1% stop loss.
Parameters
| Parameter | Default | Description |
|---|---|---|
| %K Length (KDJ period) | 30 | Length of the %K line used as the KDJ period. |
| %D Smoothing | 6 | Smoothing length of the %D line. |
| Take profit, % | 2 | Take profit distance, in percent of the entry price. |
| Stop loss, % | 1 | Stop loss distance, in percent of the entry price. |
| Volume | 1 | Order volume, in lots. |
| Candles | 01:00:00 | Hourly candle time frame used by the whole diagram. |
Diagram Details
- Two converter blocks split the Stochastic Oscillator into its %K and %D lines, and a formula block subtracts one from the other.
- Previous-value blocks hold K - D and %K one candle back, which is how the zero cross and the slope are recognised without a crossing block.
- Four logical AND blocks build the two ways into each direction and already carry the flat-position flag; an OR merges the pair into one trigger per side.
- Both entry blocks pass their own trades to the position protection block, so every fill immediately receives a stop and a target.
Usage
Import the .json file into Designer, run it in the backtester on historical data, then adjust the parameters or the blocks themselves to fit your instrument before trading it live.